Executive Summary

China CITIC Bank has released its audited Annual Report for 2025, marking a year of robust financial performance and significant strategic progress. The report, audited by KPMG Huazhen LLP and KPMG under both PRC and IFRS standards, received a standard unqualified opinion. The Board of Directors and senior management have jointly affirmed the accuracy and completeness of the financial statements, enhancing the credibility and transparency of disclosures for investors.

Key Financial and Operational Highlights

• Strong Profit Growth: Net profit achieved a “triple jump,” surpassing RMB 50 billion, 60 billion, and 70 billion over five years. Net profit for 2025 attributable to equity holders amounted to RMB 70.618 billion, up from RMB 68.576 billion in 2024. The bank has seen positive profit growth for five consecutive years, with cumulative net profit increasing over 40% compared to the previous Five-Year Plan period.
• High Dividend Payout: For 2025, the Board has proposed a final cash dividend of RMB 1.93 per 10 shares, totaling RMB 10.74 billion. Including the interim dividend of RMB 1.88 per 10 shares (RMB 10.461 billion), the total annual dividend reaches RMB 21.201 billion (RMB 3.81 per 10 shares). The dividend payout ratio stands at 31.75%, notably higher than previous years, which is a clear commitment to shareholder returns.
• Shareholder-Friendly Policies: The Bank has now implemented interim dividend distributions for two consecutive years and has further refined the dividend policy, ensuring a minimum cash distribution proportion of at least 10% of net profit attributable to shareholders, except in special circumstances.
• Asset Quality Improvements: Non-performing loan (NPL) ratio has declined for seven consecutive years. The allowance coverage ratio increased by 32 percentage points over five years, highlighting improved risk controls and asset quality.
• Customer Base Expansion: Basic corporate accounts and effective corporate accounts grew by 80% and 75%, respectively, over the past five years. Individual customers increased by almost 40%, further strengthening the Bank’s market presence.
• Strategic Transformation: The Bank has transitioned from remediation and recovery to a “body-building” phase in risk management, focusing on sustainable, high-quality development and innovation, especially in digital finance, ESG, and green finance.
• Major Growth Drivers: Wealth management assets grew by 14.29%, comprehensive financing by 5.41%, and trading settlements and transaction volume increased by 16.30% and 9.86% respectively.

Price-Sensitive and Shareholder-Relevant Information

• Profit Distribution Plan: The sizable cash dividend payout and increased ratio are likely to enhance shareholder value, potentially attracting more investors and supporting the stock price.
• Rights Issue and Share Transfers: The Bank is planning a rights issue to existing shareholders, which can affect share capital structure and may offer investors an opportunity to increase their holdings. Additionally, share transfers between the controlling shareholder and concert parties have been completed, further consolidating ownership structure.
• Convertible Bonds Delisting: The RMB 40 billion convertible bonds issued in 2019 were delisted in March 2025 upon maturity, reducing potential dilution and simplifying the capital structure.
• Asset Growth Forecast: The Bank projects an asset growth rate of around 5% for 2026, reflecting confidence in future expansion and prudent management.
• Green and ESG Finance: The Bank has issued RMB 5 billion in green finance bonds and underwritten RMB 26.909 billion in green bonds, up 67.11% year-on-year, with a strong pipeline in ESG-themed products. This positions the Bank favorably for the growing sustainable finance market.
• Major Accounting Changes: No significant changes in accounting policies, estimates, or corrections of material errors were reported during the year, ensuring comparability and stability in financial reporting.
• Risk Factors: The Bank reports no material risks that could adversely affect its future development strategies or business targets but advises investors to review the detailed risk disclosures, especially on credit, market, and liquidity risks, in the full report.
• Regulatory and Governance: The Bank maintains robust corporate governance, with full compliance in board and shareholder meetings, enhanced transparency, and active investor relations, including the adoption of electronic communications and proactive information disclosure.

Strategic and Business Developments

• “Five Leading” Bank Strategy: The Bank continues to implement its “Five Leading” strategy—leading in wealth management, comprehensive financing, trading settlement, forex services, and digital banking—which is already translating into tangible business results and productivity gains.
• Subsidiary Management and Expansion: The Bank is enhancing subsidiary management, including the establishment of CITIC Bank Financial Asset Investment, aimed at further leveraging group synergies and expanding into new business lines.
• Investor Relations and Market Value Management: The Bank has launched a Valuation Enhancement Plan, resulting in a 15% increase in A-share price and 36% increase in H-share price in 2025. This is a direct response to regulatory requirements to strengthen market value management and enhance long-term returns for shareholders.
• Information Disclosure: Over 400 periodic reports, announcements, and documents were published during the year, ensuring stakeholders are well-informed and supporting market confidence.
• Commitment to Social Responsibility: The Bank made donations totaling RMB 10.894 million (plus RMB 1.842 million from employees) and continued to support rural revitalization, consumer rights, and employee development.

Risks and Forward-Looking Statements

• Forward-Looking Statements: The Bank cautions that future plans and strategies mentioned are not substantive commitments and may be subject to change based on market and regulatory developments.
• Risk Management: The Bank continues to enhance its credit, market, and liquidity risk management frameworks, leveraging digital tools, stress testing, and advanced analytics to maintain stability in a volatile environment.

Governance and Compliance

• No Regulatory or Legal Penalties: The Bank, its directors, supervisors, and senior management were not subject to any criminal, regulatory, or material administrative penalties during the period.
• Board and Shareholder Engagement: The Bank held multiple shareholder and board meetings, all in full compliance with regulations, and provided platforms for minority shareholders to participate and express their opinions.
• Transparency and Insider Information Management: The Bank improved its management mechanisms for insider information and reported no insider trading incidents during the year.

Conclusion: Investment Implications

The 2025 Annual Report of China CITIC Bank demonstrates a year of solid growth, improved efficiency, and enhanced shareholder returns. The significant increase in dividend payout, strategic business transformation, strong asset quality improvements, and commitment to ESG and green finance are all positive signals for investors. The Board’s proactive market value management and robust corporate governance further strengthen the investment case for CITIC Bank.

Potential Share Price Movers:

• Substantial dividend payout and increased ratio
• Rights issue and capital structure adjustments
• Strong profit and asset growth projections
• Ongoing ESG and green finance leadership
• Valuation enhancement initiatives supporting higher share prices