2025 Strategy Implementation, Review of the “14th Five-Year Plan” Period, Outlook for the “15th Five-Year Plan” Period
I.2025 Strategy Implementation
In 2025, China's economy forged ahead against headwinds, achieved high-quality development and created a generally stable macro environment for financial development. With the goal of building a value bank, Industrial Bank (CIB) clearly regarded “strong profitability, deep customer cooperation, low risk cost, balanced business structure and distinct business characteristics” as the five major characteristics of a value bank. Moreover, it regarded “strategy execution, customer service, investment & trading, comprehensive risk control, and management and implementation” as the fundamental path to achieving the goal of building a value bank. The Company continued to promote the deep integration of its business strategy with the “Five Priorities” of the financial sector, with the operating results meeting expectations.
Guided by the five characteristics, the building of a value bank achieved solid results. On strong profitability, the Company achieved growth in both operating income and net profit for two consecutive years, with operating income of RMB 212.741 billion, a year-on-year increase of 0.24%, and net profit attributable to the parent company of RMB 77.469 billion, a year-on-year increase of 0.34%. On deep customer cooperation, the Company achieved improvement in both the quantity and quality of customers. There were 115 million retail customers, an increase of 4.15% compared to the end of the previous year. There were 1.667 million corporate banking customers, an increase of 8.57% compared to the end of the previous year. Retail platinum and black gold customers and private banking customers both achieved double-digit growth. Also, potential customers and value customers in the corporate banking business both achieved double-digit growth. On low risk cost, the Company maintained overall stability in asset quality, with a non-performing loan ratio of 1.08% and a provision coverage ratio of 228.41%. New non-performing loans in real estate, local government financing vehicles, and credit cards all declined year on year. On a balanced business structure, the Company directed more resources to green finance, technology finance and manufacturing loans on the asset side, with growth rates all exceeding the overall loan growth rate. On the liability side, the Company effectively reduced costs, with a deposit interest rate of 1.65%, a year-on-year decrease of 33 basis points. On distinct business characteristics, the Company continued to polish its “Three Business Cards”. The balance of green loans was RMB 1.1 trillion, ranking first among joint-stock commercial banks. The Company's five asset management subsidiaries had total assets under management of RMB 3.65 trillion. The size of FPA in the large investment banking business was RMB 4.89 trillion. The Company focused on creating the "Fourth Business Card" of technology finance, with a technology finance loan balance of RMB 1.12 trillion, ranking first among joint-stock commercial banks.
The five major capabilities were steadily enhanced, providing solid support for the building of a value bank. In terms of enhancing strategy execution capabilities, centered on the goal of “light assets, light capital and high efficiency”, the Company deepened the management of asset-liability portfolios. On the asset side, loans to key areas such as technology finance, green finance and inclusive finance increased by 18.47%, 19.05% and 7.22%, respectively, from the end of the previous year. On the liability side, the balance of various deposits was RMB 5.93 trillion, an increase of 7.18% from the end of the previous year, with the interest payment rates of corporate banking deposits and retail deposits decreasing by 34 basis points and 31 basis points year on year, respectively. The Company strengthened Group synergy to boost the fee and commission income, with investment banking, asset management, wealth management and custody businesses all contributing to growth, achieving a 7.45% year-on-year increase in net fee and commission income. In terms of enhancing customer service capabilities, the Company deepened the systematic development of the retail business, with 588.5 thousand basic retail customers upgraded to platinum and black gold customers or private banking customers. The Company also strengthened the stratified and classified management of corporate banking customers, lifting the proportion of potential and above customers to 23.94%. Moreover, the Company built a pyramid-shaped customer service system for inter-bank customers, enhancing comprehensive service capabilities by leveraging its roles as a main settlement bank, a main custodian, a trading counterparty and a main investment bank. In terms of enhancing investment & trading capabilities, the Company advanced the integrated investment research mechanism of “research-decision-execution”, and strengthened the coordinated pattern of “comprehensive investment banking, comprehensive asset management and comprehensive wealth management”. The Company achieved net non-interest income of RMB 63.989 billion. In terms of enhancing comprehensive risk control capabilities, the Company launched the reform of the risk management system and mechanism, took solid steps to ensure comprehensive risk management, and firmly advanced the resolution of risks in key areas. The recovery of written-off loans reached RMB 16.212 billion, a year-on-year increase of 12.03%. In terms of enhancing management and implementation capabilities, the Company made efforts to create a refined management system, deepened reforms in front, middle and back offices, strengthened the building of talent teams, and continuously promoted digital transformation, driving efficiency gains via refined management.
Leveraging differentiated advantages to advance the “Five Priorities” of the financial sector. In strengthening technology finance, focusing on a virtuous cycle of “technology – industry – finance”, the Company leveraged its own advantages to strengthen technology finance. The number of technology finance customers reached 364.9 thousand and the balance of technology financing reached RMB 2 trillion. In optimizing green finance, the balance of green financing reached RMB 2.46 trillion. With coordinated advancement of “green + technology” finance, the balance of green loans provided to technology enterprises totaled RMB 419.773 billion. With integrated development of “green finance+ cultural tourism”, the balance of green loans in the field of ecological protection, restoration and utilization was RMB 85.937 billion. Emerging sectors expanded rapidly, with the balance of green loans in areas such as green services, green trade and green consumption totaling RMB 78.761 billion. In making solid progress in inclusive finance, the balance of inclusive loans to small and micro enterprises reached RMB 596.067 billion, an increase of 7.22% year on year. The “Industrial Inclusion” platform met cumulative financing needs of RMB 515.919 billion, an increase of 30.45% from the end of the previous year. In deepening pension finance, the Company promoted the coordinated development of the three major segments of pension finance: pension fund finance, pension service finance and pension industry finance. The number of private pension accounts opened reached 7,780.4 thousand. The Company served 11,582.7 thousand customers aged 60 and above, a year-on-year increase of 14.00%. In promoting digital finance, the Company accelerated the transition from “Digital Industrial Bank” to “Intelligent Industrial Bank”, with AI technology applied in over 260 scenarios including customer service, marketing, risk control and investment research. The Company improved digital operation, with 70,216.7 thousand effective mobile banking customers, an increase of 11.83% from the end of the previous year.
II.Review of the "14th Five-Year Plan" Period
During the “14th Five-Year Plan” period, the world witnessed accelerated evolution of changes unseen in a century, with a profound transition from old to new growth drivers. Facing a differently operating environment and multiple challenges of “low interest rates, low interest margins and high risks”, CIB made efforts to drive high-quality development and achieved results in six aspects:
The number of customers increased significantly. The number of corporate banking customers increased from 930 thousand to 1.67 million, an increase of nearly 80%; retail customers increased from 79.56 million to 115 million, an increase of 44%; the Company basically achieved full coverage in cooperation with inter-bank corporate customers across major domestic industries.
The scale expanded step by step. Total assets successively crossed four one-trillion-yuan thresholds from RMB 7.89 trillion, surpassing RMB 11 trillion, firmly holding the second place among joint-stock commercial banks. Both loans and deposits achieved an increase of nearly RMB 2 trillion.
The structure was optimized. Loans were more focused on industries, with manufacturing loans, green finance loans and technology finance loans increasing by more than 100%, 200% and 300%, respectively. Progress was made in deposits. Corporate banking deposits increased from RMB 3.31 trillion to RMB 4.13 trillion. Retail deposits increased from RMB 0.73 trillion to RMB 1.80 trillion, rising to the second place among joint-stock commercial banks. Retail assets and liabilities basically achieved self-balance. Off-balance-sheet business maintained a leading position. Inter-bank cooperation, bond underwriting and asset custody continuously led the market. And the diversified income structure became more stable.
Profits maintained a leading position. The net interest margin fell from 2.36% to 1.71%, a decline milder than the industry average, while net interest income generally maintained an upward trend. Income from peers and financial markets gradually increased year by year, making a significant contribution to stabilizing overall income. Operating income and net profit remained at the forefront of joint-stock commercial banks. The capital adequacy ratio and the Core Tier 1 capital adequacy ratio both increased. The market value steadily increased. The interim dividend was distributed prudently. The cash dividend payout ratio exceeded 30% and the total dividend distributed over five years reached RMB 106.9 billion, rewarding all investors with excellent performance.
The quality remained robust. The non-performing loan ratio decreased from 1.25% to 1.08%. The provision coverage ratio increased from 218.83% to 228.41%. The overall asset quality remained stable, consistently outperforming the industry average.
The status continued to rise. The Company ranked among the top 1000 global banks by Tier 1 capital, up from 21st place to 14th place, thereby increasing its influence in the global banking system. The ESG rating by MSCI was elevated from A to AAA, consistently ranking in the top 3% among global peers, while the Bank built a strong brand as a responsible financial institution. The Company became the 10th designated e-CNY operating institution in China. The Head Office of the Company was honored with the “National May 1st Labor Certificate”, and the labor union of Industrial Bank was awarded the title of “National March 8th Red-Banner Collective”. The Company has been rated as a “Five-star Service Banking Institution for Serving Fujian” for four consecutive years, with social recognition constantly improving.
While achieving these results, the Company summarized valuable experience in eight aspects: Regarding the Party's leadership and Party building as the root and soul. The Company adhered to guiding high-quality development with high-quality Party building and proactively transformed the “country's most fundamental interests” into “top priority of the Bank”, ensuring clear direction, sound strategy, a united team, a pragmatic work style, strong execution, and smooth coordination. Adhering to the work principle of pursuing progress while ensuring stability. Proceeding from CIB's history and reality, the Company maintained strategic resolve while making careful tactical arrangements, continuously expanded into new arenas and forged new characteristics, with all work progressing steadily. Taking high-quality development as the top priority. The Company insisted that corporate banking is the main battlefield, retail banking is the ballast stone, inter-bank business is the moat, and subsidiaries are new driving forces. The Company ensured that key regional branches shoulder primary responsibilities to achieve more balanced development. Making digital and intelligent transformation a battle for survival. The Company adhered to the strategy of reinvigorating itself through technology, implemented reforms in the technological system, increased investment in technological resources, strengthened the cultivation of technological talents, and advanced a series of major technological projects according to enterprise-level principles and standardized methods. The Company gradually entered the period of harvest in digital transformation and embarked on a new journey of intelligent transformation. Committed to risk prevention as an eternal theme. The Company coordinated development and safety, continuously increased efforts to resolve existing risks and recover special assets, comprehensively strengthened the prevention of both traditional and new types of risks, implemented reforms in the risk management system, and consolidated the foundation of risk compliance and internal control, ensuring that risks were under control overall and were gradually converged. Relying on reform and innovation as the fundamental driving forces. The Company insisted on seeking momentum from reform and vitality from innovation, and successively carried out reforms in areas such as technology, retail banking, corporate banking, the Fujian area, Party building, discipline inspection, administrative logistics and risk management, establishing the pillars that support high-quality development and effectively solving problems encountered in the course of development. Treating talent as the primary resource. The Company always regarded talent as its most valuable asset. It established the CIB Fintech Research Academy, CIB Carbon Finance Research Institute, and Southeast Asia Research Institute, promoted programs such as the “Ten-Thousand of Technology Talent Program”, the “Ten-Thousand of Green Finance Talent Program”, the “Ten-Thousand of Wealth Management Talent Program”, and the International Talent Cultivation Program. It built Honghu, Kunpeng, and Hongyan talent pools, created competition platforms like “Xing Feiyue” and “Xinghuo Liaoyuan”, and launched awards and honors such as the Outstanding Contribution Award, CIB Craftsman and Young Science and Technology Expert to forge a larger talent team and effectively stimulate team vitality. Seeing Fujian as the place of origin. The Company strived to seize the opportunities of building a new Fujian, pushed branches within Fujian Province to “strive to be among the top three and compete for the first place” in performance. The balance of various financing in the province increased from RMB 1.4 trillion to RMB 2.1 trillion, and asset quality consistently outperformed the average of all branches.
III. Outlook for the “15th Five-Year Plan” Period
During the “15th Five-Year Plan” period, CIB will deeply grasp the political nature and people-centered nature of financial work, actively transform the “country's most fundamental interests” into the “top priority of the Bank”, and implement its new round of strategic development plan. The Company will adhere to the principles of digital and intelligent, green, international, integrated and ecosystem-driven development, focus on the development of a modern industrial system while deepening industrial finance, continue to polish the “Four Business Cards” of technology finance, green finance, wealth management banking and investment banking, and build a first-class value bank on all fronts.
Pursuing digital and intelligent, green, international, integrated and ecosystem-driven development represents the Company’s strategic direction. Among them, digital development is the fundamental engine driving business transformation; green development is the underlying value that guides business operations and growth; international development is a necessary requirement for supporting cross-border development; integrated development is a key means of enhancing customer value; and ecosystem-driven development is an advanced form of upgrading service quality.
Industrial finance represents the strategic priority. Focusing on the development of a national modern industrial system, the Company will take industries as the core, connect the full chain of government (G-end), business (B-end), customer (C-end), and financial institutions (F-end), and work comprehensively on all dimensions in an integrated manner so as to strengthen comprehensive financial services and drive the transformation and development of the entire Bank.
The “Four Business Cards” embody the Company’s strategic features. The Company will expand and upgrade its core advantages from the “Three Business Cards” to the “Four Business Cards”, namely technology finance, green finance, wealth management banking, and investment banking. It will refine its specialized businesses and strengthen its core capabilities, leveraging the distinctive advantages of the “Four Business Cards” to build the core competitiveness in the “Five Priorities” of the financial sector.
“Value Bank” is the Company’s strategic goal. In the process of creating value for customers, the Company will also try to generate more value for itself and its shareholders, achieving an organic unity of economic, social, and environmental benefits. Ultimately, it will build a first-class value bank with “Five Major Characteristics”, namely, strong profitability, deep customer cooperation, low risk cost, balanced business structure and distinct business characteristics.