Ping An Bank Annual Report Released: 2025 Dividend of 10 Billion, Net Interest Margin Down by 9 Basis Points

Ask AI · How a 9-basis-point Decline in Net Interest Margin Could Affect Ping An Bank’s Future Earnings?

On March 20, Ping An Bank (000001.SZ) released its 2025 performance report. Affected by factors both internal and external—such as falling market interest rates, interest-rate cuts and benefits to customers across the banking industry, and active adjustments to its asset mix—Ping An Bank’s operating revenue and net profit both declined year over year.

In 2025, Ping An Bank’s operating income was RMB 131.442 billion, down 10.4% year over year, and down 1.62% quarter over quarter. Of this, net interest income was RMB 88.021 billion, down 5.8% year over year; net non-interest income was RMB 43.421 billion, down 18.5% year over year. Net profit was RMB 42.633 billion, down 4.2% year over year, and down 68.12% quarter over quarter.

In response to the decline in operating revenue, Ping An Bank explained: On the one hand, driven by factors such as falling loan interest rates and adjustments to its business structure, the net interest margin was 1.78%, down 9 basis points year over year from 2024. On the other hand, mainly due to market volatility, net non-interest income from businesses such as bond investments declined.

At the same time, Ping An Bank also strengthened asset-quality management, increasing efforts to recover and dispose of non-performing assets. Credit and other asset impairment losses were RMB 40.567 billion, down 17.9% year over year. At the end of 2025, the non-performing loan ratio was 1.05%, down 0.01 percentage points from the end of the previous year; the allowance coverage ratio was 220.88%, staying at a healthy level.

In recent years, Ping An Bank has continued to adjust its asset mix and liability mix, working toward achieving “dynamic balance of volume, price, and risk.” Judging from financial performance, in 2025 Ping An Bank’s asset and liability scales grew only slightly year over year by 2.7% and 1.9%, respectively. Corporate banking remained the main driver of scale growth, while retail businesses focused on optimizing structure and continued to clear out risks.

Regarding profit distribution, Ping An Bank also announced that for the full year 2025, it would distribute a cash dividend of RMB 5.96 per 10 shares (inclusive of tax), totaling RMB 11.566 billion in cash dividends. This represents 28.83% of the net profit attributable to ordinary shareholders of the bank in the consolidated financial statements, and 27.13% of the net profit attributable to the bank’s shareholders in the consolidated financial statements.

As of the close of trading on March 20, Ping An Bank’s shares closed at RMB 10.77 per share, down 1.01%, and down 5.61% year to date.

In recent years, Ping An Bank has continued to advance its retail strategy transformation, mainly starting from optimizing customer acquisition channels (building self-operated channels) and improving the product system of middle-risk, middle-yield products, among other efforts, to increase the proportion of high-quality business.

In terms of “volume,” the bank’s personal loan balances have all shown a downward trend, while its personal deposit balances have basically remained unchanged. At the end of 2025, the bank’s personal loan balance was RMB 1,727.294 billion, down 2.3% from the end of the previous year. Among these, mortgage loans accounted for 62.9% of personal loans.

However, within the above personal loan portfolio, the share of high-quality business improved—for example, the balance of housing mortgage loans increased 8.9% year over year. The auto finance loan balance was RMB 304.801 billion, up 3.7% from the end of the previous year. In 2025, new personal new-energy vehicle loan issuances were RMB 72.626 billion, up 13.9% year over year.

Meanwhile, high-risk retail business continued to be cleared out. The bank’s credit card receivables balance, consumer loan balance, and operating loan balance decreased by 6.8%, 2.5%, and 5.2%, respectively.

Against this backdrop, the bank’s retail loan asset quality has been improving, with the non-performing rate of personal loans declining by 0.16 percentage points year over year.

It is worth noting that wealth management business is a highlight of the bank’s retail business and has helped drive retail business growth. In 2025, the bank’s wealth management fee income was RMB 5.061 billion, up 15.8% year over year.

Among them, the bancassurance business became an important growth engine driving Ping An Bank’s wealth management business. In 2025, the bank’s agency personal insurance income was RMB 1.292 billion, up 53.3% year over year. Backed by the Ping An Group, Ping An Bank’s collaborative advantages in agency insurance have become more evident. In addition, the bank’s agency personal wealth management income was RMB 1.287 billion, up 8.8% year over year; its agency personal fund income was RMB 2.290 billion, up 8.9% year over year.

The annual report shows that as of the end of 2025, the bank had 1.4915 million wealth management customers, up 2.4% from the end of the previous year. Of these, private banking customers were 105,600, up 9.1% from the end of the previous year. Private banking customers’ AUM balance was RMB 1.991313 trillion, up 0.8% from the end of the previous year.

On the liabilities cost side, as of the end of 2025, the bank’s retail deposit cost was optimized. The average interest-paid rate on personal deposits was 1.82%, down 36 basis points year over year from 2024.

Judging from financial performance, in 2025 Ping An Bank’s corporate banking business became the main driver of scale growth, with both asset and liability scales growing in parallel.

In terms of “volume,” both corporate deposits and corporate loans increased to some extent. At the end of 2025, the bank’s corporate deposit balance was RMB 2,295.255 billion, up 2.2% from the end of the previous year; the corporate loan balance was RMB 1,663.546 billion, up 3.5% from the end of the previous year,

In terms of industry layout, the bank selected key sub-industries such as public utilities, digital industries, manufacturing, healthcare, energy, automobiles, and others. At the end of 2025, the loan balances in the above key sub-industries increased by RMB 50.146 billion compared with the end of the previous year.

In terms of “price,” the average interest-paid rate on corporate deposits decreased year over year to 1.55%, compared with 2.01% in 2024. According to Ping An Bank, it focused on expanding sources of low-cost liabilities, and optimized deposit structure and cost.

But in terms of “risk,” the bank’s non-performing loan ratio on corporate loans rose. As of the end of 2025, it was up 0.17 percentage points from the beginning of the year to 0.87%, mainly due to increased risk in some existing stock real estate business.

Market attention has been focused on Ping An Bank’s corporate real estate loan risks. The annual report shows that the real-estate-related businesses the bank currently bears credit risk for mainly consist of corporate real estate loan balance of RMB 210.181 billion, down RMB 35.038 billion from the end of the previous year. Of this, real estate development loans were RMB 65.303 billion, accounting for 1.9% of the total principal amount of loans and advances.

In addition, as of the end of 2025, the bank’s non-performing loan ratio on corporate real estate loans was 2.22%, up 0.43 percentage points from the end of the previous year. In this regard, Ping An Bank explained that “mainly due to the external environment, the real estate market is still in a period of stabilization after a downturn; the liquidation/disposal cycle of some property developers has lengthened, and funding conditions have remained tight. The bank continues to improve its real estate risk management measures and make prudent provisioning. Overall, risks are controllable.”