Reforms Over 70% Complete as Bank Targets 2026 Growth
Ping An Bank executives declared that the "most difficult time has passed" during a March 23 earnings call, signaling a strategic pivot towards growth in 2026 after a challenging 2025. President Ji Guangheng stated that the bank's comprehensive reforms are now over 70% complete, setting the stage for a rebound. While 2025 saw revenue and profits decline, management presented it as a foundational year where the net interest margin stabilized at 1.78% by year-end, and early indicators for the first two months of 2026 showed a positive trend.
After two and a half years of strategic transformation, Ping An Bank's most difficult time has passed.
— Ji Guangheng, President of Ping An Bank
The bank's leadership emphasized that its strategic adjustments, including reducing interest-bearing liability costs at a rate leading its peers, have created a solid base. The high investor interest was notable, with over 210,000 online attendees, a two-year high for the event.
Asset Quality Improves as Corporate Loans Rise 9.2%
A key pillar of the bank's turnaround is a significant improvement in its asset structure and risk profile. The bank actively de-risked its portfolio by cutting over 130 billion RMB in low-yield assets like bill rediscounting and forfeiting. Simultaneously, it expanded its general corporate loan book by a robust 9.2% in 2025. This strategic shift contributed to an overall improvement in asset quality, with the bank's non-performing loan (NPL) ratio declining by one basis point and the NPL formation rate falling for the second consecutive year.
On the retail side, executives confirmed that high-risk assets have been substantially cleared, with the segment's non-performing loan generation having peaked and now trending downwards. This deleveraging has reduced the pressure for provisions, which is expected to lower risk costs in 2026 and directly support profit recovery.
Bank Eyes Tech Sector and Higher Dividends for 2026
Looking ahead, Ping An Bank is focusing on new growth drivers, particularly within China's "Five Great Articles" policy framework, which includes technology and green finance. The bank is expanding its "stock + bond" services for tech firms, a sector showing signs of health and investment. To enhance efficiency, the bank is also leveraging AI, with its AIGC marketing platform saving approximately 60 million RMB in 2025. For investors, the bank plans to maintain a dividend payout ratio between 20% and 30% in 2026, with leadership expressing an ambition to increase it from the previous year, reinforcing confidence in its financial recovery.
