Industrial Bank Vice President Sun Xiongpeng: It is expected that asset quality will remain relatively stable in 2026 compared to 2025.

On March 27, financial frontline news reported that Industrial Bank held its 2025 performance briefing today, discussing asset quality and risk management. Vice President Sun Xiongpeng stated that over the past five years, Industrial Bank has withstood market tests, and asset quality has been steadily improving; although there are many challenges in 2025, through structural adjustments, optimization, and strengthened risk management measures, the overall asset quality still meets expectations.

Sun Xiongpeng focused on three key aspects of asset quality core work. First, risk costs have further converged. In 2025, the bank’s non-performing loan generation balance decreased by 6.82% year-on-year, with the generation rate down by 0.17 percentage points, and expected loan compression of 2.3 billion yuan; strict implementation of new risk classification regulations has ensured that the risk classification and monitoring system corroborate each other without deviation, with total risk asset losses of 57.6 billion yuan, a year-on-year reduction of 2.5 billion yuan.

Second, the overall risk in key areas is controllable. The three areas of public real estate, government financing platforms, and credit cards that previously concerned the market have shown a significant downward trend in non-performing loans. In 2025, the bank actively reduced public real estate loans by 53.3 billion yuan, with new non-performing amounts down 41% year-on-year; the scale of government financing was reduced by 46.6 billion yuan, with only 300 million yuan in new non-performing loans for the year; credit card non-performing loans, which turned a corner in 2023, have decreased year by year from 2024 to 2025, with non-performing amounts down 12.98% year-on-year in 2025.

Third, provisions for restructured loans are adequately secured. The bank strictly implements regulatory requirements and manages the entire process of restructured loans. In 2025, the balance of restructured loans was 37.8 billion yuan, accounting for 0.64% of all loans, which is at a relatively low level; all related loans have been downgraded to attention and non-performing categories, with a provision rate of 27%, providing sufficient risk coverage. For enterprises with insufficient repayment sources, the bank has strengthened repayment guarantees through additional collateral and enhanced guarantee responsibilities.

Sun Xiongpeng also admitted that the current asset risk management pressure remains significant, with a complex and variable internal and external environment. In the future, some enterprises and individuals may see their repayment abilities further decline due to market fluctuations, and risks still exist in real estate, credit cards, and entities that have not completed transformation and upgrades, making asset quality control a long-term task.

Sun Xiongpeng stated that in the face of a complex situation, Industrial Bank will adhere to long-term efforts, continuously promote the organic integration of business development and risk management, and enhance risk management capabilities through digital and intelligent tools to ensure smooth business operations. Given the current market environment, asset quality in 2026 is expected to remain relatively stable compared to 2025.