Vice President of China Minsheng Bank: Short-term pressure remains on the quality of real estate assets, with long-term stabilization expected

March 31, the bank’s deputy governor Huang Hongri said at Minsheng Bank’s 2025 performance communication meeting that Minsheng Bank’s real estate business asset quality was generally stable in 2025, with the credit exposure being orderly reduced, the asset structure continuing to be optimized, and the nonperforming loan ratio declining somewhat compared with the end of last year. Looking ahead, the asset quality of real estate assets will still face pressure in the short term, but will tend toward stability in the long run.

By the end of 2025, Minsheng Bank’s real estate loan balance was 325.44B yuan, down 8B yuan from the end of the previous year. Among this, the balance of nonperforming loans was 11.74B yuan, down 4.96B yuan from the end of the previous year. The nonperforming loan ratio was 3.61%, down 1.4 percentage points from the end of the previous year.

“On the one hand, policies continue to intensify efforts, and the market is gradually recovering, which will provide strong support for the stability of Minsheng Bank’s asset quality. On the other hand, we also need to see that the resolution of existing risks, adjustments in some enterprises’ operations, and the differentiation among regions and projects will still lead to a certain proportion of new nonperforming loans.” Huang Hongri said.

Huang Hongri said that in the next stage, the bank will continue to implement an overall strategy of controlling total size, revitalizing existing stock, and optimizing incremental growth, actively fulfill regulatory requirements, speed up the resolution of existing risks, develop incremental business in a suitably prudent and orderly manner, and maintain steady and healthy development of the real estate business.

Regarding financing platform business, Huang Hongri said that Minsheng Bank’s financing platform business scale and proportion are not high, and it has been steadily declining as well; overall risk is controllable. In the next step, the bank will continue to strictly observe the policy red lines, closely monitor changes in the risks of existing businesses, and resolve financing platform debt risks in a prudent and orderly manner.

By the end of 2025, Minsheng Bank’s financing platform business balance was 76.04B yuan, down 2.3 billion yuan from the end of the previous year.

In terms of asset quality of retail loans, Huang Hongri said that the nonperforming loan ratio of Minsheng Bank’s mortgage loans shows a downward trend. Over the past few years, consumer credit has actively adjusted its structure. The total volume of consumer credit is not large, and the nonperforming loan ratio has only increased slightly compared with the beginning of the year.

He said that at present, the main pressure on asset quality risk management in the large retail segment comes from credit cards, which is also a common issue across the entire industry. Influenced by multiple factors such as the external environment, some customers’ income has declined and their repayment ability has encountered some problems. It is expected that credit card business risk will continue to face pressure. To this end, Minsheng Bank will proactively adjust its business strategy, by strictly tightening new-customer entry, strengthening risk control over existing stock, and stepping up measures such as debt recovery and disposals, so as to achieve stabilization of asset quality in the large retail business as soon as possible.

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