Live coverage of the earnings call | China Construction Bank's net profit last year increased by 1.04% year-on-year. President Zhang Yi explains: Revenue structure is becoming more diversified.

Every reporter｜Zhang Shoulin Every editor｜Chen Junjie

On the evening of March 27, China Construction Bank disclosed its operating performance for 2025. In 2025, China Construction Bank achieved operating income of 740.871 billion yuan, a year-on-year increase of 1.69%, and net profit of 339.790 billion yuan, a year-on-year increase of 1.04%.

At the performance release conference held on the same day, bank president Zhang Yi introduced that, from the operating trend, operating income has continued to grow positively since the second quarter of last year, with profit growth improving quarter by quarter.

In 2025, non-interest income accounted for 22.69% of China Construction Bank’s total income, an increase of 3.65 percentage points year-on-year. Zhang Yi stated that the income structure has become more diversified. He also mentioned that the contributions from overseas institutions and subsidiaries have steadily increased.

China Construction Bank performance release site Every reporter Zhang Shoulin photo

Net interest income decline gradually narrows

Regarding the 2025 operations, Zhang Yi pointed out that the balance between volume and price structure should be coordinated to stabilize the net interest income base, with the decline gradually narrowing quarter by quarter.

In terms of volume, the average balance growth rate of interest-earning assets was 9.38%, accelerating by 1.38 percentage points compared to last year. Zhang Yi analyzed that this is mainly attributed to the rapid growth of core assets, with the average balance of loans and bond investments accounting for 89.13%, an increase of 0.66 percentage points year-on-year.

In terms of price, Zhang Yi mentioned that the decline in NIM (net interest margin) was narrowed by 2 basis points compared to last year. The deposit interest rate was 1.32%, a year-on-year decrease of 33 basis points.

In terms of structure, there is an increased allocation of high-quality medium-to-long-term assets. The proportion of medium-to-long-term loans with a term of more than one year in domestic corporate non-discounted loans increased by 0.82 percentage points; the traditional advantages of retail credit were further strengthened, with personal consumer loans and personal business loans maintaining double-digit growth for three consecutive years; efforts were made to expand low-cost funding for settlement, with domestic demand deposits accounting for 42.43%, maintaining a competitive advantage.

The contribution of non-interest income continued to improve. Zhang Yi introduced that net commission income increased by 5.13% year-on-year. On one hand, traditional income from payment and settlement was consolidated, and on the other hand, the ability to cultivate intelligent financial services was accelerated, with revenue from wealth management and asset management steadily growing. Among them, the growth rate of fund distribution and wealth management products was rapid, with fund distribution growth exceeding 25% and wealth management growth exceeding 90%. In addition, market judgment was strengthened, investment strategies were optimized, and trading capabilities were enhanced, with returns from equity investments growing by more than 40%.

Zhang Yi mentioned that comprehensive cost management was strengthened, and effective expense control resulted in a cost-to-income ratio of 29.44%, a year-on-year decrease of 14 basis points.

NIM decline marginally narrows

In 2025, China Construction Bank achieved a net interest margin of 1.34%. The bank’s Chief Financial Officer Sheng Liurong analyzed that the marginal narrowing of NIM decline in 2025 could be attributed to three aspects.

First, the repricing of existing loans was gradually completed, alleviating pressure on loan yield declines.

Second, time deposits with relatively high interest rates matured in concentration, leading to a significant decrease in the interest rate of general deposits. Additionally, last year, the interest rates of interbank deposits also declined rapidly. The decrease in funding costs on the liability side somewhat mitigated the impact of loan yield declines on NIM.

Third, through effective asset-liability management, structural optimization was achieved, thereby slowing down the decline in yields. By optimizing systems such as cash management and payroll distribution, efforts were made to secure low-cost settlement funds and custodial funds.

In terms of asset-liability management, from the asset side, there was a further increase in the proportion of higher-yield financial investment assets, mainly reflected in bond investments, maintaining a good growth rate in interest-earning assets. From a structural perspective, last year, the proportion of higher-yield financial investments in the balance of interest-earning assets increased.

On the liability side, through effective management of customer tiered pricing, the interest rates of some relatively high-yield deposits were reduced, while expanding some lower-yield interbank deposits.

Regarding the trend of NIM in 2026, Sheng Liurong analyzed that from a macro perspective, the fourth-quarter monetary policy implementation report of 2025 clearly pointed out the need to further improve the market-oriented interest rate formation transmission mechanism, strengthen the implementation and supervision of interest rate policies, and lower bank funding costs. From a macro policy perspective, the central bank is focusing on both improving the market-oriented interest rate mechanism and maintaining reasonable control of bank funding costs. The macro policy direction is clear.

From a micro perspective, efforts will continue to strengthen effective proactive liability management and optimize the asset-liability structure, further narrowing the decline in NIM.

Enhancing efficiency through asset-liability management and customer cultivation

Looking ahead to the operations in 2026, Zhang Yi proposed that, first, it is necessary to create distinctive advantages by enhancing efficiency through asset-liability management and deepening customer cultivation. On the asset side, efforts should be made to promote qualitative improvement and reasonable quantitative growth. Structural adjustments should be intensified to deeply engage in the “five major articles” based on consolidating traditional advantages and create differentiated characteristic advantages, striving to become a leading bank in technology finance. Following the policy direction to boost consumption, optimize retail credit product supply services. Serve high-level opening up and enhance international competitiveness. Cultivate financial service capabilities in rural areas to better support urban-rural integration development. Deepen collaborative synergy, solidly promote the integration of commercial investment banking, public and private integration, foreign and domestic currency integration, and group integration, with concerted efforts among front, middle, and back offices, between headquarters and branches, parent and subsidiaries, as well as domestic and overseas institutions to empower business development through improved operational efficiency.

On the liability side, enhance the capacity for managing major liabilities, ensuring core deposit growth, and vigorously expand funding for payment settlement, trading, and wealth management to effectively reduce funding costs.

On the customer side, deepen tiered and categorized customer management, upgrade service models, and provide customers with better comprehensive financial service solutions.

Second, deepen cost reduction, quality improvement, and efficiency enhancement by focusing on refined management for effectiveness. Strengthen refined pricing management, control low-yield assets, accelerate the stabilization of net interest margins, and enhance the growth momentum of non-interest income. Strengthen comprehensive marketing professional services to improve the quality of intermediary business development. Enhance the stability management of other non-interest income and continuously promote centralized operations. While ensuring key investments, explore potential spaces for refined operational cost management, reduce ineffective expenditures, and improve input-output efficiency.

Third, strengthen proactive control with foresight to derive value from risk management. Enhance AI empowerment, improve a comprehensive, proactive, intelligent, and agile risk control system to more proactively respond to risk changes, strengthen the coordination of the three lines of defense to control risks, increase the intensity of risk control in key areas, enhance the quality and effectiveness of non-performing asset disposal, and solidify the foundation for sound operations.

Cover image source: Zhang Jian