A direct look at the "Big Four" performance release, with a net interest income turning point expected in 2026. Confidence in delivering strong performance results.

On the evening of March 27, the Industrial and Commercial Bank of China held a performance press conference. President and Chief Compliance Officer Liu Jun, Vice President and Chief Risk Officer Wang Jingwu, Vice President and Chief Financial Officer Yao Mingde, Vice President Zhao Guide, Board Secretary Tian Fenglin, and several members of the management team attended.

Liu Jun summarized the highlights of ICBC’s 2025 operations and stated that, of course, he hopes ICBC’s performance could be even better, but if it can steadily achieve a comprehensive return level above the average in each year, ICBC will definitely be a stabilizer in the capital market. He also expressed confidence that, based on good performance, ICBC will continue to deliver to the market a diversified, integrated response that represents the development direction of world-class financial institutions.

Regarding dividends, Liu Jun also noted the calls for adjustments to the dividend rate. For the long-term healthy development of the capital market, if upward adjustments can lead to a more sustained positive market development, ICBC will definitely play a leading exemplary role. ICBC will closely monitor changes in the capital market and respond to everyone’s needs.

Profit Resilience Further Strengthened

President Liu Jun summarized that ICBC’s performance in 2025, especially in the final year of the 14th Five-Year Plan, showed several bright spots. In the face of a complex and changing external environment, ICBC has consistently adhered to improving its operational quality and efficiency while serving the real economy. Indicators in terms of income, profit, structure, and quality have all shown positive changes, and ICBC has not relaxed its pursuit of efficiency and quality due to its large size. In the current macro environment, especially with the gradually narrowing interest margin, the capital market is very concerned about our efficiency, effectiveness, asset-liability structure, and management of non-performing assets.

First, operational efficiency is steadily improving, and profit resilience is further strengthened. ICBC’s core efficiency indicators, including operating income, net fee and commission income, pre-provision profit, and net profit, all achieved positive growth. The total profit continues to lead in the industry.

From a structural perspective, net interest income continues to play a fundamental role in revenue. The net interest margin is 1.28%, down 14 basis points from the beginning of the year, but the decline is narrowing quarter by quarter, showing signs of stabilization. Net fee and commission income increased by 1.6% year-on-year, reversing the previous negative growth trend; other non-interest income has provided strong support for revenue growth. Overall, ICBC’s profit growth stability, balance, and sustainability have further improved.

Second, asset and liability expansion remains stable, and the quality and effectiveness of services to the real economy continue to improve. In 2025, the group’s total assets reached 53.48 trillion yuan, becoming the first bank in the world to exceed 50 trillion yuan. Domestic RMB loans increased by 2.17 trillion yuan from the beginning of the year to 29.2 trillion yuan, an increase of 8%; RMB bond investments rose by 2.48 trillion yuan, setting a new record; domestic RMB deposits increased by 3.1 trillion yuan from the beginning of the year.

While leading in total volume, more emphasis is placed on optimizing the structure and rhythm of investments, with the loan balance reaching 67%, an increase of 3.6 percentage points year-on-year. Key sectors such as manufacturing, strategic emerging industries, green finance, and inclusive finance have maintained rapid growth, and the role of large banks in serving the real economy has been effectively demonstrated.

Third, asset quality and risk management situation. By the end of 2025, the group’s non-performing loan ratio was 1.31%, a decrease of 3 basis points from the beginning of the year, maintaining a downward trend for five consecutive years. At the end of the year, the provision balance was 852.3 billion yuan, an increase of 36.8 billion yuan from the beginning of the year, a growth of 4.5%, further enhancing risk compensation capacity.

This indicates that in 2025, ICBC created necessary reserve capabilities in financial income, effectively improving the provision coverage level, and is well-prepared to mitigate the shocks brought by the macroeconomic cycle. At the same time, efforts are underway to promote the construction of an enterprise-level intelligent risk control platform, and the work to resolve risk assets in key areas is progressing in an orderly manner.

Good operational development has given ICBC more confidence and strength to share the results of value creation with its shareholders, providing stable and sustainable investment returns. In 2025, ICBC’s A-shares and H-shares increased by 14.6% and 20.7%, respectively, performing well among large banks. The annual cash dividend was 110.593 billion yuan, continuing to maintain its position as the listed company with the highest total cash dividends in A-shares.

Liu Jun stated that he hopes ICBC’s performance could be even better, but if it can steadily achieve a comprehensive return level above the average in each year, ICBC will definitely be a stabilizer in the capital market.

Transition from a Funding Intermediary to a Comprehensive Service Provider

President Liu Jun continued by stating, looking ahead to the key work in 2026, first, actively expand comprehensive services. To build a world-class financial institution, it cannot solely rely on a balance sheet primarily based on loans; it must comprehensively strengthen the construction of the modern financial services industry. In the fields of new quality productivity and new infrastructure, ICBC needs to transition from a funding intermediary to a comprehensive service provider for value elements such as capital, information, and efficiency. It must not only provide sufficient credit resource allocation but also regard non-commercial business as an important pillar, enhancing the synergy between commercial banks, investment banks, asset management, custody, and wealth transaction settlement to create comprehensive solutions for clients.

Second, strengthen global integrated operations. Currently, the Chinese economy has been highly integrated into the global economic cycle, and ICBC must balance the development of both markets and effectively mobilize resources. It will promote an upgrade in global resource allocation capacity and cross-border financial service capabilities, especially around the internationalization of the yuan to upgrade products and services, and improve the comprehensive service system for yuan-denominated pricing, trading, settlement, clearing, investment, financing, and asset management. ICBC is the largest market maker in China’s interbank market and has an unshirkable responsibility to take on the role of the main force and pioneer in the next round of yuan internationalization, enhancing the international pricing influence of the yuan.

Third, continuously enhance digital momentum. Always adhere to the requirements of the “Four Orientations.” Advanced artificial intelligence technologies should be integrated into operational processes, but the prerequisite is strict market and internal security verification, as protecting customer privacy and information security is ICBC’s most important responsibility.

2026 will be a challenging year, but ICBC is confident that, based on good performance, it will continue to deliver to the market a diversified, integrated response that represents the development direction of world-class financial institutions.

Overall Credit Risk Under Control, Adequate Provisions

Vice President Wang Jingwu introduced that in recent years, ICBC has consistently adhered to balancing high-quality development with high-level safety, steadily improving and enhancing asset quality. Since the 14th Five-Year Plan, ICBC’s non-performing loan ratio has maintained an improvement of no less than 2 basis points each year. By the end of 2025, the group’s non-performing loan ratio was 1.31%, a decrease of 3 basis points from the beginning of the year.

In the areas of inclusive and personal loans, the asset quality management pressure in these two segments has increased, which is a common challenge across the industry. However, ICBC has consistently maintained a bottom line, and currently, the overall credit risk in these two segments is under control, with sufficient provisions.

In terms of inclusive loans, through strong support for the real economy, enhancing service for key customer groups, and improving the digital inclusive product portfolio, ICBC has continuously increased the coverage, accessibility, and satisfaction of inclusive financial services. In terms of risk management: first, it combines digital risk control with expert loan management; second, it improves the precision of risk monitoring and early warning through digital and centralized methods; third, it timely identifies external risk characteristics, strengthens model iteration and collateral management; fourth, it adopts multiple measures to enhance the quality and effectiveness of risk resolution. Looking ahead, in the context of the macro economy steadily improving, coupled with the enhancement of the bank’s inclusive line professional capabilities and the improvement of risk control mechanisms, ICBC will carry out high-quality work in inclusive finance.

In terms of personal loans, ICBC focuses on its main responsibilities and actively aligns with existing and new policies. Specifically: first, it adapts to the development trend of the real estate market, implementing deployments to construct a new model for real estate development and promote stabilization in the real estate market; second, it strengthens the policy guidance for people’s livelihoods and enhances the supply of consumer finance; third, it addresses weak links in financial services to improve service quality in rural and agricultural areas as well as in the commercial sector.

Regarding asset quality, ICBC’s personal loan asset quality has always been relatively high. Influenced by multiple factors such as economic transformation over the past two years and adjustments in the real estate market, the non-performing loan ratio has temporarily entered an upward channel, but this is consistent with the industry trend. Future risks in personal loans are controllable. With the acceleration of national consumer promotion policies and the release of benefits from the 15th Five-Year Plan, the asset quality of personal credit will return to a reasonable level. ICBC has established a personal credit business department to achieve centralized and specialized operation of personal loan business.

This Year’s Net Interest Income Expected to Reach an Inflection Point

Vice President Yao Mingde introduced the trend in loan pricing, predicting that in 2026, the loan yield will continue to trend downward, but the decline will be significantly narrowed.

May 2025 was our most recent adjustment of the LPR (Loan Market Quote Rate), and most of the impacts from it have been fully reflected. From the data of this year (2026), the interest rates for newly issued corporate loans, personal housing loans, and personal operating loans have shown signs of stabilization. In the first two months, the interest rates for new loans decreased by 2 basis points compared to last year, which is a reduction of 18 basis points compared to the same period last year. However, considering the possibility of further adjustments to the LPR this year, loan yields may continue to trend downward, but the decline will be narrowed.

Regarding the net interest margin, Yao Mingde’s basic judgment is that the margin will likely show an “L” shaped trend in 2026. In 2025, ICBC’s net interest margin was 1.28%, down 14 basis points. However, the downward trend in loan yields is narrowing quarter by quarter, with a year-on-year reduction of 5 basis points. If we do not consider significant further adjustments to the LPR or deposit rates, it is expected that this year ICBC’s net interest income will turn positive year-on-year, reaching an inflection point, and the decline in net interest margin will further converge. Overall, the downward trend in net interest margin remains unchanged in the short term, but a marginal stabilization trend is expected to continue.

Clarifying the Main Ideas for Building a Digital and Intelligent ICBC

Vice President Zhao Guide introduced the construction of “Digital and Intelligent ICBC.” The upgrade from Digital ICBC (D-ICBC) to “Digital and Intelligent ICBC” (AI-ICBC) is based on three considerations: first, to follow the trend of the times and grasp the development of intelligence; second, to implement national strategies and promote the implementation of “artificial intelligence + action”; third, to deepen reform and transformation, injecting strong momentum into the entire bank. Fully embrace artificial intelligence and strive to enhance the level of digital development.

Regarding the achievements in artificial intelligence applications, in 2025, ICBC launched the “Navigating AI+ Action” initiative to create new quality productivity in finance and became the first institution in the industry to obtain the highest level of certification in FDMM (Financial Data Maturity Model). At the technical level, we have built a fully autonomous and controllable technology system for “ICBC Smart Brain,” which has four characteristics. First, efficient computing power, constructing a large model elastic computing pool mainly based on domestic computing power; second, model adaptation, creating an enterprise-level base model matrix that understands finance better; third, rich data, creating a trillion-level Token financial dataset; fourth, secure and reliable, establishing a full-chain security prevention and control system for artificial intelligence applications.

At the application level, we are promoting the large-scale application of artificial intelligence across more than 500 scenarios. For instance, the intelligentization ratio of financial market trading has reached 96%; we have created a marketing assistant for personal customer managers, boosting the transaction volume of key products by hundreds of billions; 78% of remote customer service is handled by artificial intelligence, and the proportion of intelligent operations in key operational business exceeds 60%.

Regarding this year’s (technology) key planning, in line with the outline of the 15th Five-Year Plan, the main ideas for building a digital and intelligent ICBC have been clarified, summarized as “one new and three highs”: new quality productivity driven by digital technology, high-quality development, high-level safety with group integration, and efficient governance integrating business and technology.

Progress on Capital Supplementation to be Announced

Board Secretary Tian Fenglin introduced that in terms of capital management, ICBC supplemented core Tier 1 capital by 246.9 billion yuan (internal supplementation) through profit retention in 2025, completing the issuance of 230 billion yuan in capital instruments and 10 billion yuan in TLAC (Total Loss Absorption Capacity) bonds. By establishing a regular capital constraint mechanism such as the EVA (Economic Value Added) management model, the group’s capital utilization efficiency has continuously improved.

As of the end of 2025, the capital adequacy ratio was 18.76%, and the core Tier 1 capital adequacy ratio was 13.57%, both operating steadily within a reasonable range. In 2026, ICBC will orderly carry out capital supplementation and formulate a new round of capital and TLAC tool issuance plans. As for the special government bonds situation to support large commercial banks in supplementing capital, it will be subject to formal announcements from ICBC.

Regarding dividends, since its listing in 2006, ICBC has created a cumulative cash dividend return of 1.58 trillion yuan for shareholders, with a cash dividend rate maintained above 30% for several consecutive years. To enhance investors’ sense of gain, starting from 2024, the frequency of dividend payments will be increased (two dividends: interim and final), and H-share investors will be offered the option to choose RMB as the dividend currency.

In 2025, despite a significant increase in stock prices, the average dividend yield for A-shares and H-shares still reached 4.22% and 5.99%, respectively, far exceeding the levels of fixed-term deposits and ordinary investment products during the same period. In the future, the appropriate dividend ratio will be scientifically determined to ensure the sustainability and growth of shareholder returns.

President Liu Jun added that ICBC’s capital base is the largest among global banks, and any changes in our capital will serve as a bellwether for the market. First, we will further scientifically quantify capital planning, making it a dynamic annual rolling process that closely integrates capital raising with market demand. Second, from the perspectives of price-to-book ratio (PB) and dividend yield, ICBC has considerable investment value and will continuously enhance wealth creation capabilities through sustained strengthening of the financial foundation, ensuring that both capital supplementation and market returns are robust. Third, regarding calls for adjustments to the dividend rate. For the long-term healthy development of the capital market, if upward adjustments can lead to more sustained positive market developments, ICBC will definitely play a leading exemplary role. ICBC will closely monitor changes in the capital market and respond to everyone’s needs.

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