National Financial Regulatory Administration: Commercial banks will achieve a total net profit of 2.4 trillion yuan by 2025

Recently, the National Financial Regulatory Administration released data on key banking supervision indicators for the fourth quarter of 2025. By the end of the fourth quarter of 2025, the total assets of China’s banking financial institutions in domestic and foreign currencies reached 480 trillion yuan, an increase of 8.0% year-on-year. Among them, the total assets of large commercial banks in domestic and foreign currencies were 210.8 trillion yuan, up 10.8% year-on-year, accounting for 43.9%; joint-stock commercial banks had total assets of 77.8 trillion yuan, an increase of 4.8% year-on-year, accounting for 16.2%.

Banking financial services continued to strengthen. By the end of the fourth quarter of 2025, the balance of inclusive small and micro enterprise loans reached 37 trillion yuan, an increase of 11.0% year-on-year. Inclusive agricultural loans totaled 14.2 trillion yuan, up 10.3% year-on-year.

The overall quality of commercial bank credit assets remained stable. By the end of the fourth quarter of 2025, non-performing loans (NPLs) of commercial banks (legal entity basis) were 3.5 trillion yuan, a decrease of 24.1 billion yuan from the previous quarter. The NPL ratio was 1.50%, down 0.02 percentage points from the previous quarter. At the end of the fourth quarter of 2025, normal loans of commercial banks totaled 230.2 trillion yuan, with normal loans at 225.1 trillion yuan and special mention loans at 5.1 trillion yuan.

Commercial banks’ risk mitigation capacity remained adequate overall. In 2025, commercial banks achieved a cumulative net profit of 2.4 trillion yuan. By the end of the fourth quarter of 2025, the average capital profit rate was 7.78%, and the average return on assets was 0.60%. The balance of loan loss provisions was 7.2 trillion yuan, with a provisioning coverage ratio of 205.21% and a loan provisioning rate of 3.07%. As of the end of the fourth quarter of 2025, the capital adequacy ratio of commercial banks (excluding foreign bank branches) was 15.46%, the Tier 1 capital adequacy ratio was 12.37%, and the core Tier 1 capital adequacy ratio was 10.92%.

Liquidity indicators for commercial banks remained stable. By the end of the fourth quarter of 2025, the liquidity coverage ratio was 157.99%, an increase of 8.27 percentage points from the previous quarter; the net stable funding ratio was 127.83%, up 0.16 percentage points; the liquidity ratio was 80.95%, up 0.85 percentage points; the excess reserve rate of RMB was 1.64%, up 0.10 percentage points; and the deposit-to-loan ratio (domestic RMB) was 80.08%, down 0.38 percentage points from the previous quarter.

(National Financial Regulatory Administration)

(Edited by: Qian Xiaorui)

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