On March 30, China Merchants Bank (CMB) held its 2025 performance briefing, during which Chairman Miao Jianmin shared the bank's outlook and operational strategy for 2026.
Miao Jianmin stated that the banking sector in 2026 will face both challenges and opportunities. On one hand, the impact of changes in the external environment is deepening, geopolitical risks continue to rise, global economic momentum remains weak, and multilateralism and free trade are severely impacted. Domestically, the economy is undergoing a profound transformation with an ongoing shift between old and new growth drivers. Weak demand-supply dynamics are prominent, market expectations are subdued, and risks persist in key sectors. The banking industry continues to face challenges such as low interest rates, narrow interest margins, and low fee income, putting sustained pressure on profitability.
On the other hand, the fundamental conditions and long-term positive trajectory of China's economy remain unchanged. As more proactive fiscal policies and appropriately accommodative monetary policies take effect, and with the nation prioritizing domestic demand, building a strong domestic market, and accelerating the cultivation of new growth drivers, favorable factors for commercial bank operations are expected to increase.
Looking ahead to 2026, Miao Jianmin further indicated that the group will thoroughly implement its "Value Bank" strategy, adhering to a principle of seeking progress while maintaining stability and taking proactive measures. The bank will continuously enhance its three core capabilities: wealth management, digital technology, and risk management, thereby broadening its competitive moat and pioneering a new phase of high-quality development.
First, the bank will focus on long-term development, maintaining strategic resolve and continuously improving its value creation capabilities. By adhering to the principles of banking development, it will seize opportunities in key areas such as the modern industrial system, high-level technological self-reliance, a robust domestic market, and high-standard opening-up, while accurately understanding customer needs. It will increase innovation efforts to provide customers with professional, differentiated, and comprehensive financial services, striving to maximize comprehensive value for customers, employees, shareholders, partners, and society.
Second, the bank will concentrate on key areas and navigate through cycles to sustain its competitive advantages. In a low-interest-rate environment, stabilizing net interest margins will be a top priority to maintain industry leadership. It will leverage strengths and address weaknesses by enhancing asset allocation capabilities and preserving its advantage in comprehensive wealth management. Close attention will be paid to the pricing and risk management of credit assets to ensure consistently high asset quality. Furthermore, the bank will promote reasonable growth in risk-weighted assets, optimize asset allocation, and maintain a high level of capital adequacy.
Third, the bank will seize opportunities to accelerate its "Four Transformations" and build new advantages for high-quality development. This includes speeding up international development, promoting high-quality growth of overseas institutions tailored to local conditions, strengthening cross-border financial services, assisting enterprises and individuals with global asset allocation, and deepening integrated operations. It will enhance the role of subsidiaries, striving to increase their contribution and create differentiated competitive advantages. The bank will consolidate and expand its systematic advantages in retail finance, develop new strengths in niche business segments, accelerate the formation of new growth poles in key regions, and enhance its capacity for differentiated development. Digital transformation will be accelerated by adhering to an "AI first" philosophy, building a smart bank, pioneering business model upgrades, and establishing a new competitive moat in the AI era.
Fourth, the bank will strengthen its development resilience by promoting balanced and synergistic growth across its four major business segments. It will consolidate and reinforce the dominant position of retail finance, build distinctive advantages in corporate finance, drive excellence in the interbank and financial markets segments, and accelerate the development of wealth management and asset management. These four segments will support and reinforce each other at a higher level, creating a more resilient and competitive business development structure.
Fifth, the bank will safeguard its foundations by continuously reinforcing its fortress-like risk and compliance management system. It will uphold a prudent and cautious risk culture, strengthen comprehensive risk management, enhance market analysis capabilities, and rigorously guard against various risks including credit risk, market risk, operational risk, and liquidity risk. Anti-money laundering and internal control compliance management will be strengthened to ensure that China Merchants Bank progresses steadily and sustainably on the path of high-quality development.