On October 30, ICBC held its Q3 2025 earnings briefing, addressing market concerns over corporate real estate and mortgage loan quality.

Management noted that while the corporate real estate sector remains under pressure—consistent with broader market trends—ICBC’s real estate loan asset quality stayed stable in Q3, with overall risk showing a downward trajectory.

Three factors underpin their outlook for stable asset quality: 1. **Market Improvement**: Transaction volumes, land auctions, and price declines have narrowed significantly, suggesting a gradual easing of sector-wide risk. 2. **Portfolio Diversification**: Corporate real estate loans account for less than 3% of ICBC’s total loan portfolio (¥30 trillion), with adequate provisions covering potential losses. 3. **Asset Selection**: Loans are concentrated in prime projects within key cities, backed by stringent criteria (location, borrower, and project quality). New loans follow strict collateral valuation and closed-loop fund management, enhancing risk mitigation.

For mortgages, ICBC’s Q3 non-performing loan (NPL) ratio aligned with peers, though post-write-off and securitization adjustments kept it below industry averages. As policy support stabilizes collateral values and economic stimulus takes effect, mortgage NPL trends are expected to slow, avoiding accelerated deterioration.