Dear investors, analysts, and friends from the media, good afternoon. Welcome to the 2025 annual results release of the Bank of China. I'm Liu Chenggang, Vice President and Secretary of the Board of BOC. Today's press conference is co-hosted by Ms. Yu Ke, Spokesperson of BOC and myself. This event is being live streamed online, and we also extend a warm welcome to all participants who are joining us online. First of all, let me introduce you to the leaders attending today's conference. Mr. Zhang Hui, Vice Chairman, President, and Chief Compliance Officer. Mr. Cai Zhao, Vice President. Mr. Wu Jian, Vice President. Mr. Yang Jun, Vice President. Ms. Wang Xueli, member of the Party Committee and Vice President. In addition, some directors participating online. The Bank's 2025 annual results have been announced to the public today.
The performance presentation slides are now available for download on the bank's official website or can be viewed at the bottom of the live stream page. All financial figures presented today are prepared in accordance with IFRS unless otherwise specified. Today's conference consists of two sessions, a performance overview and a Q&A session. First of all, let's give the floor to Mr. Zhang Hui to deliver the speech.
Dear investors and guests, good afternoon. First of all, a big welcome to all of you to our annual results release. I want to thank all of you for your long-term trust, attention, and support for our bank. I will first provide a brief overview of our 2025 operating performance and outlook for the next stage. After that, I will join the senior management present here to have an in-depth exchange on issues that you care about.
2025 was the final year of the 14th Five-Year Plan period. Facing a complex environment, our bank resolutely implemented the decisions of the Party Central Committee and the State Council. We accelerated transformation under a low interest rate environment, achieved steady and improving operational results, improved quality as we progressed and met our expectations, and delivered a stable and satisfactory returns to our shareholders. First, operating efficiency steadily improved. Operating income reached about RMB 659.9 billion, an increase of 4.28% year-on-year. In the past three years, the cumulative year-on-year growth over 11 quarters ranked among the top in the main peer groups. Financial efficiency improved marginally with pre-provision profit growth increasing 2.62 PPT compared with 2024.
Net profit and net profit attributable to shareholders grew by 2.06% and 2.18% respectively, with growth improving quarter-over-quarter. NIM stood at 1.36%, remaining stable quarter-over-quarter since mid 2025. The cost-to-income ratio fell 0.93 PPT year-over-year, and operating efficiency further improved. Second, resilience of development significantly enhanced. We have persistently promoted high quality transformation under a low interest rate environment and achieved noticeable results. Net interest income improved quarter-over-quarter and a single quarter year-over-year growth in the second half of this year turned positive. Non-interest income increased 19.21% year-over-year and maintained at a high proportion of 63.33% of operating income, up by 4.16 PPT year-over-year.
Income sources were further broadened with rapid growth in wealth management, settlement and clearing, custody financial market trading of products and integrated operation, which strongly supported overall performance. Three, balanced asset and liability growth. Group total assets reached RMB 36.8 trillion , up 9.4% from last year. The proportion of high yield assets such as loans and investment increased 0.93 percentage points. Total liability reached about RMB 35.15 trillion, up 9.47%, while RMB deposits increased by RMB 1.37 trillion and foreign currency deposits grew by 15%, further consolidating our leading advantage. Fourth, asset quality remained stable and excellent. NPL ratio stood at 1.23%, down by 0.02 percentage points from last year, and maintaining the best level among peers.
The watchlist ratio remained 1.47%, which is very stable. Provision coverage ratio was about 237%, maintaining reasonable adequate level. NPL balances and ratio for overseas institutions both declined. We completed the first batch of capital replenishment of RMB 165 billion, and CAR reached 18.85%, the highest year-end level historically, with continuous improvement in risk buffer capabilities. Fifth, our market recognition and shareholder returns remained high. Our unique operational advantage and business development have been widely recognized by the market. S&P, Moody's and Fitch all rated BOC at the highest level among Chinese peers in 2025. We formulated and implemented market value measurement measures and the value enhancement and quality return plan, striving to convert steady performance into substantial returns for investors.
We efficiently completed both the 2024 year-end and the 2025 midterm dividend distributions, with a per share dividend of RMB 0.2310, and our payout ratio maintained at 30%. For four consecutive years, we have delivered double-digit stock investment returns to shareholders. Over the past one year, we have persisted in our positioning, and we have also been fully integrated into national strategy in serving the real economy, preventing financial risks, and deepening our innovation has further enhanced our high quality development. First, firmly supporting high quality development of the real economy. Domestic RMB loans increased by RMB 1.81 trillion, up by 9.9%. Intensified support for major national strategies, key sectors, and weak links, including technology, innovation, technical upgrades, inclusive finance, elderly care, et cetera.
We have also made great efforts in developing the five key areas of finance. We also increased about 18.78% in our technology loan balances, leading the peers. Green loan balance grew by 27.83%, and green bond underwriting led Chinese peers. Inclusive finance expanded in scale and quality. Inclusive small and micro enterprise loan balances and account numbers increased by 21.52% and 22.86% year on year respectively. We built the BOC Silver Age Pension Financial Brand Enterprise Annuity. Individual accounts ranked high in the market, and the pension industry loans achieved a double-digit growth. We promoted breakthrough in digital industrialization and a deep transformation of industrial digitization with digital economy industry loan balances exceeding RMB 880 billion.
We supported consumption recovery through the Wan Qian Bai Yi initiative, effectively implementing preferential interest subsidy policies. Domestic personal consumption loan balances increased by 28.35%. We contributed to stabilizing the real estate market with personal housing loans exceeding RMB 500 billion. Secondly, we firmly expanded global advantage and supported high-level opening up. Our global operations advantage continued to consolidate with global deployment and international competitiveness further strengthened. Overseas pre-tax profit contribution increased to 27.99%. We actively supported stable foreign trade and investment. Domestic institution handled international settlement of $4.45 trillion, up by 9.56%. Cross-border e-commerce settlement reached $1.18 trillion, up by 45.07%. We established the first Chinese global custody bank.
The custody network covered over 100 countries and regions, maintaining the top scale among Chinese peers. We actively served going out and bringing in initiatives. We tracked over 1,400 Belt and Road corporate credit projects with cumulatively credit support exceeding $4.39 billion. We closely followed key foreign-invested projects, providing loans, panda bonds, cash management, and supply chain financing services. We became one of the first Bond Connect northbound RMB market makers, bond trading volumes with foreign investors consistently exceeding trillions over the past three years. We launched cross-border payment channels for mainland-Hong Kong transfers, becoming the preferred channel for routine small-value remittances. We supported offshore tax refund services covering the widest regions with the number of cases for foreign visitors increasing more than 150%. We vigorously supported RMB internationalization.
Our London and Colombo branches were successfully qualified as RMB clearing banks, bringing the total number of clearing banks to 18. Cross-border RMB corporate loans continue to grow, with cross-border RMB settlement Panda bonds and offshore RMB bonds maintaining market leadership. We conducted various mBridge transactions exceeding RMB 350 billion. For three consecutive years, we acted as a main participating bank enabling efficient cross-border capital flows. Third, firmly consolidate the client base and enhance competitiveness in key businesses. We classified corporate clients and implemented targeted strategies, increasing corporate clients by 13.88%. We built a comprehensive financial service ecosystem for government, military, education, healthcare, insurance, securities, and infrastructure clients, forming well-integrated collaboration in government, military, school, hospital, insurance, securities, and infrastructure sectors. We developed a digital service system for individual clients.
Total personal clients approached 554 million, and mobile banking monthly active users exceeded 100 million. We continuously improved the quality and efficiency of wealth management services. Agency sales of personal wealth management products and public mutual funds increased by 11.8% and 12.73% respectively. We provided full life cycle and full process comprehensive products and service for clients. Link financing projects increased 25% year on year. Comprehensive operating profit contribution has increased for three consecutive years, maintaining leading position among many domestic peers. Fourthly, firmly coordinated development of safety, safeguards risk, and compliance. We continued to deepen the comprehensive risk management system and proactively prepare for various risk prevention.
We adhered to the due approach of a strict control over new NPLs and a strict management of write-offs, ensuring the entry gate and exit gate of asset quality was strictly managed, maintaining steadily in asset quality and adequate risk buffer capability. We strengthened overseas risk management, assisted client in coping with external environment changes to ensure the safety of their overseas funds and assets. We responded prudently to market volatilities with liquidity risk and market risk maintained at a controllable level. Internal control and compliance management, we strengthened the compliance operation.
Improve effectively. Fifthly, firmly promote digital transformation and deepen intelligent empowerment. We accelerated the transformation and upgrading of technology architecture. The total number of cloud service exceeded 51,000. We implemented the AI Plus initiative and formulated the AI Plus construction plan, deploying over 400 intelligent assistants across credit, operations, risk, and client services for deep empowerment. Enterprise-level RPA covered over 3,600 scenarios, expanding the effectiveness of digital tools to reduce workload and empower frontline teams. Sixthly, firmly practice sustainable development and fulfill social responsibility. We officially released our first sustainability report, reviewing the significant achievement of BOC in serving social development, improving people's livelihoods, and contributing to ecological and environmental protection. We explored carbon emission measures for high carbon clients within credit portfolios, thereby reducing portfolio carbon intensity.
For 26 consecutive years, we have provided national student loans benefiting more than 2 million students. We actively supported employment stability and livelihood loans to maintain and expand the jobs increased over 63%. 2026 is the first year of the 15th Five-Year Plan period. We will implement the deployment of the State Council and also to focus on our main businesses and also hold fast to our risk bottom line and continuously build ourselves into a very strong financial institution. In accelerating China's effort to build a strong power of finance, we are going to make our contribution to high-quality development. We will mainly focus in the following five areas. First, high-quality support for the real economy.
Deepen the five key areas of finance, intensify support for technology innovation, strategic emerging industries, manufacturing, SMEs and other key sectors, and follow the national strategy to expand the domestic demand, promote consumption potential and optimize investment structure. Second, high quality support for opening up. Deepen the one access point global response service model. Build a financial platform for Chinese enterprises to go global, and increase support for Chinese enterprises going global and foreign invested companies bringing in. Enhance RMB internationalization services and accelerate integrated company operations. Thirdly, promote high quality value creation. Stress on proactive lean management and pricing capabilities. Consolidate income structure advantages. Continuously improve non-interest income contribution. Optimize application of EVA and RWA in resource allocation. Promote cost reduction and efficiency enhancement and enhance sustainable development capability. Fourth, high quality digital and intelligent empowerment will be improved.
We'll apply smart contracts, blockchain, and AI in cross-border payments, wealth management, client operations, and internal management. We'll also enhance online and offline, domestic and overseas integrated services and improve total factor productivity. Fifthly, high quality foundation for development. We'll strengthen monitoring and management of key industries and clients, control credit and compliance costs effectively, enhance risk prevention and resolution capacity, and ensure stable and safe financial services. Dear friends, in 2026, BOC will also celebrate the 20th anniversary of A+H share listing. Since listing, our total assets have increased 6.2 times and cumulative dividends have exceeded RMB 970 billion, providing substantial returns to the country and shareholders.
Standing at a new starting point and position, all BOC employees will unite, act pragmatically, and continue to work hard to deliver steadily improving operating performance, repaying the trust and support of clients, investors, and all walks of life of society. Thank you.
Thank you, President Zhang. Now we move on to the Q&A session. In order for more friends to have a chance to raise questions, each person only can ask one question. Before that, please identify yourself and your organization. First investor and analyst. First analyst on site, please raise your hand. First row on the right-hand side in the middle. Gentlemen, please.
Thank you for the opportunity to ask the first question. I'm Dong Bo from TD Securities. Congratulations on the excellent performance. I have a question regarding strategic planning and business strategy. It is a top-down question. 2026 marks the first year of the 15th Five-Year Plan.
We would like to ask the management to share BOC's overall layout for the new development stage of the 15th Five-Year Plan period as well as its business philosophy and goals for 2026. Thank you.
It is a very comprehensive question. I'd like to invite President Zhang to answer the question.
Thank you for your question. As I introduced at the results released just now, in 2025, facing the complex and volatile external situation, BOC forged ahead under pressure and pursued a progress while maintaining stability and successfully concluded the 14th Five-Year Plan with good results, laying a solid foundation for the development of the 15th Five-Year Plan period. Looking ahead to the 15th Five-Year Plan period, in terms of the overall strategic goal, BOC will align with the strategic deployment for building a strong country, a country strong in finance, aim to develop into a powerful financial institution and continue to act as a doer in implementing the decisions and arrangements of the Party Central Committee, a major force in serving the real economy.
A forerunner in supporting high-level opening up, a practitioner in enhancing the strength of the large-scale, large state-owned financial institutions and a ballast for maintaining financial stability, thus promoting its own high-quality development while serving the high-quality development of the economy and society. This strategic positioning and goal is a solemn commitment made by the Party Committee of BOC to the Party and to the country, to all customers and investors, and to all cadres and employees of the bank in 2024, which has effectively guided and promoted the achievement of all the bank's business goals during the 15th Five-Year Plan period. That is about the overall strategic goals.
In terms of the business practices during the 15th Five-Year Plan period, we'll adhere to the consistent implementation of the overall plan and continue to effectively carry out its strategic goal and positioning. From the perspective of operation and management, during this new period, BOC will focus on its core responsibilities and main business, mainly six capability improvements and two transformation promotions. About the six capabilities. First, we build a strong capability to serve the real economy, adhere to taking financial services for the real economy as the fundamental purpose. Closely focus on major strategic tasks and projects such as the construction of China's modern industrial system and coordinated regional development during the 15th FYP period, optimize financial supply, and improve service quality and efficiency.
We will solidly carry out the five key tasks of the financial sector, place high-tech finance in a prominent position in the group's overall development, and build a service model that empowers the innovative development of industries. Second, build a strong global layout capability and international competitiveness. We will resolutely take globalization as the core development strategy and top priority, continuously consolidate the advantages in key regions such as Hong Kong and Macau, accelerate the strategic layout in key emerging markets, and create new growth drivers for profit contribution. We will play the main role of BOC in facilitating international use of the RMB and supporting the construction of the two international financial centers of Shanghai and Hong Kong. Third, we'll build a strong comprehensive customer service capability.
We will adhere to customer centricity, give full play to the characteristics of comprehensive operation, improve the ecological construction of circles, chains, and groups, optimize the comprehensive financial services of equity, loan, bond, insurance, and lease, continuously enhance ecological and integrated service capabilities to drive the improvement and strengthening of medium-sized credit customers, and take multiple measures to improve the quality and efficiency of customer service. Fourth, build a strong risk resistance capability, optimize the comprehensive risk management system, strengthen asset quality control, improve the quality and efficiency of recovery and resolution, ensure the basic stability of the group's asset quality, keeps the NPL ratio at a low level among peers, and firmly hold the bottom line of preventing systemic financial risks. Fifth, build a strong integrated operation capability.
We'll strengthen the organic integration of business data and technology and enhance the agile and collaborative channel operation capability, intensive and shared operational support capability and data empowerment, data-empowered management and sharing capability. Six, we'll build a strong team of financial talents. We will adhere to high political standing, excellent work style, and strong professional capability. Clearly establish a correct orientation for talent selection and improvement and employment. Improve the talent system and mechanism. Encourage cadres and employees to take on responsibilities and strive to cultivate a team of cadres and talents with global competitiveness. Regarding the two transformations. First, accelerate digital intelligent transformation.
We'll increase tech investment in digital intelligent business, build an AI+ finance ecosystem, strengthen tech empowerment in key areas such as key businesses, channel construction, and risk management, build differentiated market competitiveness, and create a power engine for high quality development. Second, accelerate the transformation of sustainable business development. Last year, NIM was at 1.26% and greatly shortening the gap with our peers. We are confident that in terms of the net interest income fundamentals, we'll be able to make more contributions. We'll optimize the asset liability structure and firmly hold the basic foundation of net interest income. We'll promote the high quality development of net interest business and increase efforts to expand net interest income, which account for a large proportion of our income. We will also strengthen refined management and promote cost reduction and efficiency improvement.
We'll also continue to adhere to light asset intensive development, strive to alleviate the pressure of the tight balance of capital and funds, and effectively respond to the low interest rate environment. That is our overall strategy and for the 15th Five-Year Plan period. 2026 is the first year of the 15th Five-Year Plan period. The bank will firmly establish and practice a corrective view of performance, serve national strategies and the development of the real economy, adhere to focusing on main business, improving governance, and achieving differentiated development, maintain a good development momentum, and go all out to ensure a good start for the 15th Five-Year Plan period. Our business philosophy and goals for 2026 can be summarized as the six orientations.
The first orientation is to adhere to innovation-oriented development, serve the overall national interest, and increase support for the development of new quality productive forces. We will continuously improve the product and service system highly adapted to new quality productive forces, boost and empower the construction of the modern industrial system, and help smooth the innovation chain, supply chain, industrial chain, and capital chain. We'll also increase support for the construction of a strong domestic market, serve the expansion of domestic demand and boost consumption, implement the policies of two major categories of projects and two new types of infrastructure, and help improve the transmission efficiency of fiscal and financial policies.
We will also increase support for areas such as upgrading traditional industries, cultivating and expanding emerging industries and future industries, expanding capacity, improving the quality of the service industry, and creating a new form of intelligent economy so as to improve the quality and efficiency of comprehensive financial services. Second orientation, adhere to the advantage-oriented development, consolidate the advantageous features, and provide all-around services for high-level opening up. We will continuously improve the global layout and financial service system and maintain a high level of overseas profit contribution. We will vigorously expand the international use of the RMB and maintain rapid growth of RMB assets and liabilities of overseas institutions. We'll also serve the going global of Chinese-funded enterprises and the layout of the global industrial chain and build a benchmark brand for supporting the overseas development of Chinese-funded enterprises.
We'll also improve and expand global custody products and services and the proprietary custody network and provide higher quality global custody services for various cross-border investment and financing customers. Third, we will adhere to the value-oriented development, focus on value creation, and effectively respond to the challenges of the low interest rate environment. We will strengthen refined management and drive the steady improvement of net profit to a level comparable with peers. We will enhance the capability of overall allocation of domestic and overseas. We'll also strengthen cost reduction and efficiency improvement. Fourth, adhere to the foundation-oriented development. We'll strive to consolidate the fundamentals and improve the quality and efficiency of key business products and services. We will closely focus on customer needs, give full play to the advantages and characteristics of globalization and comprehensive operation, and continuously improve the full lifecycle and full process comprehensive service system.
We'll enhance the market competitiveness of the key business segments, continue to focus on key products such as salary payment agency, express payments, third-party custody, and cash management, and actively expand the sources of low-cost liabilities. We'll also adhere to the stability-oriented management development. We'll build a solid risk defense line and better balance development and security. We will effectively respond to internal and external risks and challenges and adhere to prudent and compliant operation. We'll also strengthen asset quality control, focus on the two main lines of strictly controlling newly generated non-performing assets and increasing substantive recovery, continuously save credit costs, and keep the group's non-performing loan ratio stable. Six, we'll adhere to the intelligence-oriented development, strengthen digital intelligent empowerment, and accelerate the improvement of tech operation efficiency.
We'll accelerate the implementation of the AI plus plan, optimize the high-efficiency technology supply system, promote the value transformation of data assets, and create AI application paradigms, focusing on the scenario needs of key areas such as credit marketing and operation. That's all for my answer, and thank you for the question.
Thank you, President Zhang. Now we move on to the next question. Second row, lady in the middle, please.
Thank you, senior management, for the chance to ask a question. I'm Xinjun Zhang from Haitong Securities. First of all, congratulations on the excellent performance of BOC. I have a question related to deposits. Since the beginning of the year, the market is highly concerned about the large-scale maturity and repricing of time deposits in the banking industry.
How does the management of BOC view the growth trend, structural changes, and room for cost improvement of deposits in 2026? At the same time, we can see that the market has noticed the fierce competition, be it competition among peers or the flow of deposits to other areas. What measures has the bank taken in active liability management in the face of fierce deposit com petition? Thank you.
I would like to ask Vice President Yang to answer the question.
Thank you for your question. I would like to answer from two perspectives. One is our view on the growth trend of deposits, and second is how to promote the high-quality development of liability business. First of all, our view on the growth trend of deposits. In terms of total volume, in recent years, M2 has maintained steady growth.
Over the past three years, average growth rate was 8.5%. It is estimated that this year, this trend will be sustained. About the customer deposits, they have shown a steady and sound momentum. In 2025, domestic RMB deposits achieved a year-on-year increase in increment. Regarding the issue of the maturity of bank time deposits concerned by the market, the scale of the bank's maturing time deposits has indeed increased since the second half of 2025. For these maturing time deposits, we have honestly done a good job in deposit retention services. If you look at the actual results, most of the deposits are still retained in the form of deposits with a high rollover ratio of time deposits.
It is expected that the maturity of time deposits will have a limited impact on the bank's deposit growth this year, and the momentum will continue.
Interest rate is lower than the time deposit interest rate three years ago. The re-pricing of the above deposits will drive down the deposit interest pay out rate, bringing a positive impact on stabilizing the bank's interest and margin level. In terms of a structure, it is estimated that social funds will continue to gather towards individuals and non-bank institutions. However, with the implementation and effectiveness of the package of policies for fiscal and financial coordination to boost the domestic demand, which supports the sustained sound development of economy and improves corporate liquidity, the growth of corporate deposits will improve. This will create a good foundation for the bank to consolidate the liability base and support the development of the real economy. Secondly, how to promote the high quality development of liability business.
Customer deposits are the core business for improving liability quality and an important guarantee for banks to maintain the steady growth of assets. The bank has always adhered to the customer centricity, driven by the dual wheels of risk management and asset management, allocating products and services around customer needs, and improve the efficiency of deposit precipitation by providing customers with full process services first. Consolidate the customer base and improve liability quality. For corporate customers, establish hierarchy and a classified service system. Actively give full play to the traditional advantage of cross-border business and further expand the customer base by providing customers with international trade and cross-border RMB settlement services. Relying on digital platforms such as corporate online banking, mobile banking, and WeChat Work to improve the coverage and the convenience of customer services.
Carry out targeted marketing for various customer groups such as scientific enterprises, multinational corporations, listed companies, micro and small enterprises, industry leaders, and continuously improve customer service capabilities. For individual customers, continuously optimize the hierarchical operation strategy, steadily promote the three-level customer management model, and provide precise services for customers at different levels. Strive to improve customers' transaction. Secondly, improve the product and the service system and enhance the quality and efficiency of customer service. We adhere to win-win value creation concepts for both banks and we have also provided the diversified professional products, services so as to drive the steady growth of deposits. For instance, in 2025, the bank optimized the global cash management system and realized 7/24 real-time receipt of multi-currency funds on the basis of security leading the industry. Give play to the capability advantage.
Retention of funds. Focus on the policy orientation of investment in physical assets and human capital. Follow up the capital flow of finance, social securities, housing, major projects construction, technological transformation, and industrial and supply chains. Build a finance plus non-finance service network for customers and integrate continuous decline of interest rate center. Banks can obtain stable funds with relatively controllable costs. We are going to seize favorable market opportunities, issue bonds and interbank certificates of deposit at the right time, enrich the source channels of liabilities, and also achieve cross-cycle high quality development by supplementing capital and improving the total loss-absorbing capacity. Thank you so much.
Thank you so much. Now we can invite more questions. Okay. The lady who are sitting on the second row, on the left-hand side.
Thank you so much for this opportunity. I'm Martin Ting from Guotai Junan Securities. I have a question about NIM. Faced with the challenge of the low interest rate environment, can you introduce us on the specifics? Looking ahead of 2026, what is the trend of the NIM, and what are the main pressures and the supporting factors, respectively? Thank you so much.
I'm going to answer your question. Actually, according to Mr. Zhang, he already mentioned that it's a very important task for us to maintain our good development and performance in the low interest rate environment. As for Bank of China, we have our own advantages, so we will make good use of both domestic and overseas markets, coordinate both RMB and foreign currencies. We already achieved good results in 2025.
Our net interest margin was 1.26%, a decrease of 14 basis points over the previous year. Since the second half of the year, the group's foreign currency net interest margin has stabilized and rebounded. The group's net interest margin was the same as that in the first half of the year, and the net interest income achieved positive year-on-year and month-on-month growth. Specifically speaking, first, we increased asset investment and improved efficiency of asset allocation and strengthened our self-disciplinary management of low interest rate. In 2025, the bank's domestic RMB loans increased by about RMB 1.8 trillion. Credit supply maintained steady and balanced growth, adhered to the principle of risk pricing, and reasonably determined the interest rate level of newly issued loans according to operating costs. We also actively seized domestic and overseas market opportunities.
The proportion of the bond investment in interest-earning assets increased by 21 percentage points year-on-year, of which the growth rate of foreign currency bond investment exceeded 20%, flexibly arranged the term bond investment. Secondly, continuously optimize liability structure and effectively reduce liability costs, maintain the rapid growth of domestic RMB deposits, appropriately absorb interbank non-bank demand deposits, solidly promote the self-disciplinary management of deposits, drive the group's liability interest payout rate down by 37 basis points with the improvement amplitude hitting a new high in recent years. Third, give play to the advantage of global business and improve efficiency of foreign currency fund utilization. The asset scale of overseas institution has grown steadily, and the proportion of core assets in total assets has increased by 0.9 percentage points.
Looking ahead to 2026, it is expected that the year-on-year decline of the bank's net interest margin will narrow significantly and the net interest income will achieve positive growth. Currently, we're faced with a lot of uncertainties. As you may know, now the geopolitical landscape has actually already given pressure to the interest rate decline of many currencies. We have confidence that we will seize the market opportunities brought by implementation of the package of incremental policies, give full play to the advantage of globalization and the characteristics of a comprehensive operation solidity, achieve the comprehensive balance of volume, price, risk and efficiency. For the 2026, we will do great efforts in the following aspects.
First, optimize the basic foundation of asset and liability business and effectively control the decline of interest margin of RMB business in terms of asset. In the first year of the 15th Five-Year Plan period, the bank will grasp the more proactive macro policies, act ahead of schedule and reasonably arrange the pace of credit supply and bond investment. Also in liability, we will stress on technology empowerment, focus on key scenario and products, promote the digital operation of corporate non-loan customers, settlement accounts and individual long-tail customers and facilitate precipitation of demand deposit funds. Meanwhile, we will also actively seize the favorable opportunities of the gradual maturity of time deposits to effectively hedge against the downward pressure of asset income. Besides, secondly, we will strengthen the global service system and maintain the overall stability of the interest margin of foreign currency business.
The bank will continue to steadily expand the customer base of going global, promote sustainable growth. Meanwhile, the rapid growth of low-cost domestic deposits has provided competitive capital support. Currently, the expectation of U.S. dollar interest rate cut has weakened significantly. If the U.S. dollar interest rate is cut, it will have basically no adverse impact on the bank. If the Hong Kong dollars interest rate declines, it will bring certain pressure on our income. We will strengthen interest rate sensitivity management and take multiple measures to alleviate the adverse impact. Thirdly, refine the requirements for interest rate pricing management and consolidate foundation for steady development. We will follow closely policy development, adhere to the bottom line of compliant interest rate operation, and improve efficiency and effectiveness of pricing management through institutionalized and standardized management methods. We will also set the reasonable deposit and loan interest rate.
Thank you so much. Today, we have a lot of friends who are with us today, especially some H-share investors who are also joining us online. Now we will invite the friends who are online to raise questions. Please identify yourself and then ask your questions. Thank you. Thank you.
Thank you so much and I'm very grateful for this opportunity. I'm Xu Ran from Morgan Stanley. I have a question regarding the growth of the commission rate, while the ratio of the non-interest income is also quite high. I want to ask you a question about your reasons and also whether in 2026 will it continue to grow and what are the driving factors? Thank yo u.
We will invite Vice President Huang Xueling to take this question.
Thank you so much for your question. Bank of China has played its advantage of a globalization and a comprehensive business and to actively promote the source of non-interest income and effectively tackle the market. We have the total non-interest income of RMB 219.2 billion, a year-on-year increase of 19.2%, while the net fee and the commission income was RMB 82.2 billion, a year-on-year increase of 7.4%. This is the historical high in terms of the contribution ratio of non-interest income, mainly in three areas. First, to grasp the development, the trend of transformation and upgrading of resident asset allocation and enhance wealth management capabilities.
We continuously build a full market plus full group product shelf, improved product selection and management capabilities with more than 7,500 on sale and agency sold public funds and wealth management products. Benefiting from the recovery of the capital market in 2025, the investment assets of domestic individual customers increased by 15%. The customer-driven stock trading volume of Bank of China (Hong Kong) increased by 85% and the maximum scale of BOC Fund increased by 12.8%, driving the group's agency fees up by 26.67%. At the same time, accelerate the construction of global custody capabilities. The group's custody asset scale increased by 21%, driving the growth of relevant fees by 7.74%. Secondly, optimize comprehensive finance and continues to provide high quality payment and settlement services.
Bank of China has solidly expanded customer and account base. The total number of corporate customers and corporate settlement accounts have both achieved a double-digit growth, and the international settlement volume has increased by 9.56%, driving the group settlement and clearing fees up by 2.03%, achieving positive growth for five years in a row. The corporate domestic settlement fees achieved remarkable performance with a year-on-year increase of 7.2%. The development foundation was further consolidated, and the leading advantage in international settlement was further expanded. Thirdly, give play to the advantage of a global market business and steadily expand trading and investment business. As you may know, in 2025, the global financial market experienced large fluctuations.
Relying on the global 24-hour uninterrupted service network, we served the global customers' need for fund risk aversion and value preservation, and the customer-driven trading business achieved a steady growth. Grasping the trend of RMB and foreign currency bond markets dynamically optimized the investment portfolio and realized effective growth in financial investment income. Looking ahead in 2026, the domestic economy has a good start. The transformation of old and new growth drivers are accelerating, and the demand for transaction banking, wealth management, investment banking business will further grow. We will take customer as the first as a whole, taking serving customers through the entire chain as its mission and strive to maintain the steady and healthy development of non-interest business.
In terms of wealth management, we will continue to coordinate asset management and to build a full spectrum product system and achieve a win-win situation for both customers and bank in terms of values.
In terms of settlement business, we will seize the incremental business base brought by expanding domestic demand and boosting consumption, consolidate the foundation of traditional business such as payment and settlement and cross-border settlement, and deeply embed e-settlement services into industrial chain scenarios. In terms of financial market business, we will further give play to the advantages of global layout and continuously enhance the competitiveness of financial market business. We'll also fully play out the role of the main channel to facilitate the international use of the RMB. Meanwhile, against the background of complex and volatile geopolitics, we will serve customers' needs for exchange rate risk management and cross-border investment and financing in response to their needs for risk aversion, value preservation and appreciation. We'll also enrich the global custody product system and provide customers with reliable global customer custody services.
We'll also strengthen the research and judgment of macroeconomy and market, make good arrangements for RMB and foreign currency investment, and effectively balance risk and returns. In a word, the in-depth advancement of China's high-quality economic development has provided many structural opportunities for the bank's non-interest business development. BOC will seize the opportunities to achieve better development. Thank you.
Thank you, VP Huang, for your answer. Now we move on to the next question online. Yan, Madam Yan.
Thank you, VP Liu, for the opportunity to raise a question, and I congratulate BOC for such excellent performance in the complex environment. I have a question related to asset quality. In 2025, BOC's asset quality remained generally stable and robust, but the market has also noticed that risks in the banking industry as a whole continue to emerge in certain areas.
We would like to ask the management about its outlook, the senior management outlook on the bank's asset quality performance this year and what pressures the corporate and retail business are facing respectively.
Thank you, Madam Yan. I would like to invite VP Wu Jian to answer the question.
Thank you for your question.
In 2025, facing the profound and complex changes in both domestic and international situations, China's economy forged ahead under pressure, developed towards innovation and improvement, successfully completed the socioeconomic goals, and concluded the 14th Five-Year Plan with remarkable achievements. At the same time, BOC has continuously strengthened the active management of credit risks, taken more proactive and effective measures, further improved the level of refined management, constantly raised the quality and efficiency of recovery and disposal, achieved good results in risk control throughout the year, made new progress in risk prevention and control in key areas, and maintained stable asset quality.
Asset quality, as President Zhang has mentioned, by the end of 2025, the group's NPL ratio was 1.23%, a decrease of 0.02 ppt from the end of previous year, continuing to maintain the lowest level among comparable peers. The provision coverage ratio was 200.37% with a reasonably adequate risk mitigation capacity. Going forward in 2026, we are confident in maintaining the stability of the group's asset quality. Domestically, the NPL ratio of corporate loans has maintained a downward trend for seven consecutive years. The asset quality of key industries such as the manufacturing sector has continued to improve and the business structure has been further optimized. About the newly generated NPLs of personal loans, they have improved quarter by quarter since the second half of 2025. Overseas, the asset quality control is effective.
The NPL, the non-performing balance and NPL ratio achieved a double decline in 2025, and the globalization advantages are continuously consolidated. These have provided confidence and strength for us to further improve asset quality control in the forthcoming period. Of course, we'll also focus on the following aspects. First, the real estate market is in a period of transformation from the old model to the new one. Some indicators fluctuated in 2025, but the phased adjustment has been reflected in the asset quality data. With the release of risks, we estimate that the real estate market will operate steadily. Second, the personal loan business still faces certain pressure against the background of the macroeconomic cycle and the adjustment of employment structure.
Third, the repeated changes of U.S. tariff policies, frequent geopolitical conflicts, and the downturn of commercial real estate in some overseas regions have brought potential challenges to asset quality control. Although the impact of changes in the external environment is deepening, the supporting conditions and basic trend of China's economy for long-term sound development have not changed. The bank will continue to balance development and security, pay close attention to the new trends and characteristics of risk resolution at all times, strengthen the forward-looking research and judgment, and effectively respond to risks, and firmly hold the bottom line of preventing systematic risks. By taking the following measures, it is expected that the impact of the above challenges on BOC's asset quality will be relatively limited. First, solidly carry out the five key tasks of the financial sector.
Further optimize the credit structure, improve the credit business in the fields of a strong domestic market, modern industrial system, green transformation and development, high quality opening up, and rural revitalization, and strengthen the risk management of structural problems in real estate, local debts, and key industries. Second, hold the bottom line of asset quality firmly. Resolve potential risks in key areas. Adhere to the two-way refined control strategy of newly generated non-performing assets and recovery and disposal, and conduct coordinated control of asset quality from both the inflow and outflow aspects. Third, we will restructure and upgrade the group's comprehensive risk control system, improve the level of risk governance, enhance global risk management capabilities, strengthen the control of high-risk products, and make forward-looking risk prevention and control in non-traditional fields.
Fourth, we will deepen the digital and intelligent transformation of risk control, consolidate system functions, build a solid risk support, create standardized and full process management capabilities, and improve the level of digital and intelligent risk control driven by data and supported by new technologies. Thank you.
Thank you, VP Wu. Now let's go back to onsite and take another question from another analyst. First row left, gentleman, please.
Thank you, management team, for the opportunity to raise a question.
I'm Liu Minqi from CICC. So looking ahead to 2026 and the 15th Five-Year Plan period, what development opportunities and challenges does the management believe BOC's global operation is facing, and what is the outlook for the relevant financial performance and risk trends?
Thank you, Mr. Liu. Globalization is a big feature of BOC, and as our market would like to know the investment value of BOC, I would like to ask President Zhang to answer the question.
First of all, thank you for your attention to BOC's globalization strategies implementation. You know, globalization is the inherent gene and the heritage of the past century of operations of BOC, I mean, 114 years. It is also the biggest differentiated development advantage compared with other Chinese-funded banks. This strategy has not been changed. We established overseas institutions that have sustained operations for close to 100 years. Globalization, as I have mentioned just now, is the inherent gene and the heritage of BOC's past 114 years of operations. It is also the biggest differentiating factor and advantage for us.
It provides very effective support for our operations, management, and performance, for the whole bank, you know. In terms of globalization, overseas institutions pre-tax profit contribution ratio is close to 28%. I mean, overseas institutions contribution, 28%, very high. BOC will deem globalization as a important component of the development strategy and a differentiating element of BOC and implement it very well. You mentioned the question of opportunities and challenges. I think we can about the opportunities first of all, we are highly aligned with the national development plan and for example, the national 15th Five-Year Plan. The national 15th FYP clearly proposes to adhere to open cooperation and mutual benefit and win-win results.
Expand high-level opening up and make specific arrangements from aspects such as promoting the innovative developmental trade and the high quality Belt and Road Initiative cooperation. This is a very good opportunity in terms of the overall national opening up for BOC to promote its own high quality development. Second, the accelerated flow of foreign investment and foreign trade releases policy dividends. You know, the three national brands of Buy in China, Export from China and Invest in China continue to exert their strengths, building an important bridge for the global flow of factors and market integration. BOC's traditional advantages in trade, finance, payment, facilitation and other fields have a broad stage for us to play. Third opportunity is the changes in the world economy and trade also breed development opportunities. Last year, the world's economic and trade landscape has witnessed great changes.
China's import and export volume, you know, in terms with ASEAN, with Europe, with Africa, has all increased by a large margin, very quick increase. BOC has made a lot of important deployments and enjoy a very solid foundation with good potentials for very promising growth. Fourthly, RMB internationalization is being accelerated. Now, RMB has become China's largest settlement currency for external payments and receipts, and the world's third largest trade, finance and payment currency. Enterprises' willingness to use RMB for transactions has increased significantly. BOC's business growth in cross-border RMB payment, RMB financing and bonds and other aspects has ushered in a very important window of time. Fifthly, the overseas development of Chinese-funded enterprises also spawns cross-border financial needs.
With the in-depth adjustment and optimization of China's industrial structure, the pace of Chinese-funded enterprises going global has been continuously accelerated. The demand for diversified financial services such as cross-border financing, global cash management and interest rate and exchange rate risk management is also increasing. Day by day, BOC's international services meet these diversified financial needs. The sixth opportunity is the global demand for asset security also give birth to a blue ocean for custody business. The complex and volatile international situation has increased the enterprise's demand for asset risk aversion. BOC has strived to promote the construction of global custody capabilities, and we have become the first Chinese-funded global custody bank and can provide safe and efficient asset custody solutions for Chinese enterprises and global customers. That is the opportunities for our globalization strategy in BOC.
Of course, we're also facing some challenges in terms of globalization. Mainly two challenges. First, the external environment is full of uncertainties and global economic growth is slowing down and there are sharp changes in geopolitical situations and trade policies are also unstable in many countries. This has brought challenges to risk control and compliance. Second, frequent regional conflicts and tensions threaten the safety of some overseas branches to a certain extent, and the disruption of industrial and supply chains have affected the safe development of Chinese enterprise customers. However, facing the opportunities and challenges under the unseen in a century as the only Chinese-funded bank with a century of global operation, BOC has the responsibility, confidence and ability to build the global golden brand into a performance pillar. We have our comparative advantages.
First, mainly five aspects. First, our institutional network covers the whole world. BOC's overseas institutions cover 64 countries and regions, out of which 45 are Belt and Road countries and regions with institutions in all major international financial centers. Having a significant first-mover advantage in the international financial centers of Shanghai and Hong Kong. The coverage of proprietary overseas institutions ranks second in the world and first in China. Secondly, the customer base is solid and stable. Our bank's overseas institutions serve about 28,000 Chinese-funded, going global customers and more than 330,000 foreign-invested enterprises in China. The service coverage ratio of Fortune 500 foreign enterprises in China exceeded 90%.
This has also provide a very solid foundation for our globalization. Thirdly, cross-border business leads the industry. In terms of international settlement and foreign exchange purchase and sales, we have very obvious competitive advantage with nearly 410,000 cross-border settlement customers and maintained steady growth. Our major cross-border RMB business ranked first in the world, and our CIPS business accounts for more than half of the entire market. By 1995, our bank has been awarded the best RMB clearing bank in the Asian Pacific region, awarded 12 times. Fourthly, overseas risk control is steady effective. Over the past century, we have faced with many historical processes, such as changes in the international situation and restructuring of the global economic and trade network.
Relying on firm strategic resolve, rich development experience, and a solid effective risk control capabilities, we have never had a major risk incident, and the non-performing asset balance and the non-performing loan ratio have always been maintained at a reasonable level. Also, since reform opened up, we have never encountered any major risk incident. We do know that the overseas risk control needs very long-term and solid foundation, and that's also one strength of BOC. Fifthly, our talent team has maintained very strong strengths. We have very sufficient reserve for global talents with 25,000 employees overseas, and now has built an overseas talent pool of more than 8,000 people, reserving professional talents in multiple minority languages.
There is a galaxy of talents in fields such as international settlement, foreign exchange trading, and risk compliance, which is our greatest confidence in seizing opportunities and coping with challenges. Of course, we could not be very overaccomplacent in these five advantages. We shall continuously improve our capabilities of operation and management. For the next step, we will mainly focus on the following four areas. First, adhere to globalization development strategy and continuously enhance our global layout capabilities and international competitiveness. Second, strengthen forward-looking research and judgment and effective response to risks. Pay close attention to the new trend and the characteristics of the evolution of international market risks. Improve the monitoring and early warning system and ensure the safety of overseas assets.
Thirdly, increase efforts in the construction of regional headquarters, continuously enhance the referral layout capabilities and competitiveness. Fourthly, improve overseas digital and intelligence level, accelerate application of new technologies such as smart contracts and blockchain, increase intensity of intensive construction, and continuously improve operational efficiency. The client also asked me to look ahead to 2026 regarding our strategies and also the risk trend. First of all, I wanna say that we are confident in promoting the continued sound development momentum of our global businesses and also to maintain the greater momentum of our international business. Our goal is that the contribution of overseas institutions in profit will remain at a high level and also the asset of our overseas institutions will also be very good and stable. Thank you so much for your question.
Thank you so much, President Zhang.
In the interest of time, that will be the end of the Q&A session of investors and analysts. If you have further questions, feel free to contact our investor relations team. Now, we will give the floor to Ms. Yu Ke to moderate the Q&A session of the journalists.
Thank you so much. Hello, everyone. I'm Yu Ke. I'm the spokesperson of BOC. First of all, I want to give a big welcome to all the friends from the media. Over the past one year, you have reported the story of BOC in integrating into our national strategy and carry out our historical responsibilities. Now, we are going to the Q&A session. Please identify yourself first. Now, the floor is open. Okay. First, the lady on row two on the left-hand side.
Congratulations. I'm Wu Zheyue from CCTV.
My question is that the 14th Five-Year Plan proposed to accelerate high levels of scientific and technological self-reliance and self-improvement, lead the development of new productive forces. Would you please share with us your experiences in developing fintech?
Thank you so much, the reporter from CCTV. We will invite Mr. Zhang Hui to answer your question.
First of all, I want to thank you for your interest in our work in fintech. In recent years, we have continuously increased efforts to serve high-level scientific and technological self-reliance and improvement, and has formed a new differentiated business advantage in sci-tech and fintech, becoming a new engine driving the high-quality development of the bank. Mainly, we have the following four features. First, the structural advantage continues to stand out.
By the end of 2025, the balance of Bank of China's sci-tech loans exceeded RMB 4.8 trillion, accounting for more than one-third of our corporate loans, ranking first among our comparable peers. Second, the customer base is continuously consolidated. The total number of credit customers exceeds 170,000, among which the credit coverage rate and the customer increment of sci-tech enterprises are at the leading level in the market. Thirdly, the effect of comprehensive services is remarkable. The cumulative comprehensive financial supply, including investment, bonds, insurance, and leasing, has reached about RMB 900 billion, building a full life cycle and a full process comprehensive service system for sci-tech enterprises. Fourthly, the asset quality remains sound.
In recent years, the NPL balance of sci-tech loans has remained stable and the NPL ratio has been continuously lower than overall NPL rate of the group. Overall, our sci-tech finance business has achieved remarkable improvement and has become the new advantage driving our competitiveness in the market. I wanna thank you for your attention and support. Specifically speaking, in the following four areas, we will continue our efforts. First, pursue innovation-oriented development in service models and systematically build our sci-tech finance ecosystem. The needs of sci-tech enterprises are diversified. They need not only credit, funds, but also series of comprehensive financial support, including equity investment, debt financing, insurance protection, and listing services. With commercial banking as the hub, we connect various financial resources for enterprises.
We have further promoted the BOC Sci-Tech Innovation Ecosystem Partner Program, building an efficient platform for sci-tech enterprises to connect with technology, industry, capital, and talents. It has already attracted about 7,500 enterprises and over 800 investment institutions. At the end of 2025, we further launched the BOC Sci-Tech Innovation End-to-End Customer Cultivation Program, fully coordinating the comprehensive operation resources within the group, building an equity loan relay financial support plan for the next three to five years for key core technology enterprises, such as hard technology enterprises and creating a sci-tech finance model of coordinated investment, lending, risk-sharing, and benefit-sharing. This has realized a more continuous and predictable comprehensive equity loan financial support for high-tech companies. In the three months since its launching, pilot projects have been carried out in eight regions, including Beijing, Shanghai, and Shenzhen.
About 28 projects have entered this channel. Secondly, promote the in-depth development in industrial layout and continuously enrich the supply of sci-tech financial resources. We have made precise layout and key breakthrough and continuously increased its layout in the field of AI. In 2025, we took the lead in issuing the action plan for supporting the development of AI industrial chain, proposing to provide a special comprehensive financial support of loan less than RMB 1 trillion for AI industry chain within the next five years and also launched the innovative product, Computing Power Loan, to provide credit supply for enterprises with computing power needs.
Through one year's effort, we have established cooperation with nearly 405,000 core enterprises and with a new increase of over RMB 150 billion in credit balance and a growth rate of 90% and provided comprehensive financial services such as equity, bonds, insurance, et cetera. Last Friday, we together with China Academy of Information and Communications Technology and the China Securities Index Company officially launched the research on AI industry index and our subsidiary, BOC Fund, simultaneously released the BOC Double Innovation AI Index Fund, providing more reference guidelines for financial support to the AI industry. Thirdly, align with precision-oriented in policy implementation and continuously enhance momentum of the sci-tech finance development.
Facing the opportunities brought by the package of incremental policies and the physical and financial coordinated policy to boost domestic demand issued by the state, we have actively responded and promoted conversion of policy dividends into the quality and efficiency. By the end of 2025, the balance of loans for scientific and technological innovation and equipment renewal exceeded $190 billion, and the re-lending balance ranked first. We have helped scientific tech companies strengthen and supplement their industrial chains and also provided financial support for M&A transaction exceeding RMB 190 billion. Follow the leader pilot test. We also provided the support of these companies and launched the pilot test insurance finance, and we already worked with 190 national and ministerial-level pilot test platforms with a coverage rate of nearly 80%.
Focusing on patient capital, we optimized the AIC Equity Investment Fund and the BOC Sci-Tech Innovation Fund. With a total subscribed scale exceeding RMB 40 billion, it has launched landmark equity projects in fields such as commercial aerospace, biomedicine, AI, and integrated circuits, and actively participated in the establishment of the Beijing-Tianjin-Hebei Venture Capital Guidance Fund. Fourthly, make pragmatic efforts in mechanism optimization to effectively consolidate the foundation for sci-tech finance development. In response to the features of sci-tech innovation enterprises such as high investment and light assets, we have continuously promoted mechanism innovation and actively addressed the blocking pain points and difficulties in financial services.
To improve professional service capabilities, we have continuously improved the three-dimensional sci-tech finance organizational structure of head office, branch, sub-branch, and configured the exclusive sci-tech finance credit model for growing sci-tech enterprises, solving the credit bottlenecks in the process of transforming from micro and small inclusive customers to large enterprises. We have also launched the construction of an external expert database, introduced the cloud review model to provide empowerment for efficient credit approval. To improve precise service, we have innovatively developed BOC Sci-Tech Innovation Quantum System and used digital technology to integrate multiple factors such as enterprise innovation capabilities, operating conditions, to form a multidimensional evaluation system. Now, we have already used this system to serve more than 10,000 businesses.
To support international cooperation, relying on the one-point access global response service mechanism, we support sci-tech enterprises to go global and innovative resources to be brought in. In the next step, we will give full play to our globalization advantage and strengthen the level of opening up and cooperation. Looking ahead, we will continue to improve the system compatible with scientific and technological innovation, promote in-depth integration and mutual promotion of globalization advantage, comprehensive characteristics and sci-tech finance business development, and form a high-level cycle of technology, industry, finance and contribute more strengths to supporting high-level scientific and technological service reliance and improvement and help the development of new productive forces. Thank you so much.
Now, we want to invite, the gentleman on the second row on the right-hand side.
Thank you so much. I'm the Xinhua News Agency. I'm Lu Yuhua.
My question is that in 2025, consumption continued to play the role of the main engine of economic development. Could you elaborate on the measures taken by BOC to actively cooperate with implementation of the special action, and what efforts will you make?
Thank you for your question. This is a question related to boosting domestic consumption. I would like to invite VP Cai Zhao to answer the question.
Thank you for your question. In this year's government work report, striving to build a strong domestic market is placed as the first of this year's work tasks, and implementing a special action to boost consumption is placed in a prominent position. This is the second consecutive year that the government work report has taken expanding domestic demand as the top priority. BOC has actively responded to the national strategic deployment. We have taken boosting consumption and expanding domestic demand as a key task of our whole bank, systematically arranged to improve the quality and efficiency of financial services, made coordinated efforts from both the supply and demand sides, not only strengthening financial supply in the consumption field, but also consolidating the foundation of residents' income and consumer confidence. That is to enable people to make money and spend money well.
In 2025, BOC launched the Wan Qian Bai Yi consumer benefit campaign with 10 major gift packages, injected more than RMB 20 trillion in credit funds into key consumption areas, created more than RMB 250 billion in property income for customers, and provided over RMB 10 billion in consumption subsidies and fee reductions, benefiting hundreds of millions of people and helping to warm up consumption with real financial support. First, we helped residents increase their income to make consumption more confident. We strengthened professional wealth management services, enriched the diversified product shelf. We have also improved the pre-investment, investment, and post-investment customer experience through both full process wealth management companionship. We have also promoted people's livelihood and inclusiveness of wealth management services.
We helped customers share the dividends of the capital market and increased residents' property income. By the end of 2025, the scale of financial assets of the group's total personal customers exceeded RMB 170 trillion. We issued more than RMB 560 billion in entrepreneurial guarantee loans and special loans for employment stabilization and expansion, providing financial support for stabilizing employment and promoting entrepreneurship. Second, we served consumption upgrading to make consumption more high quality. In 2025, the consumption volume of credit card national subsidy trading increased by more than 100% year-on-year, and the balance of personal consumption loans increased by 28%. BOC promptly implemented the fiscal interest subsidy policy for consumption loans, benefiting a total of more than 700,000 customers.
In terms of service consumption, it focused on supporting industries such as accommodation and catering, cultural tourism, and pension. In 2025, the loan growth rate in key areas of service consumption was about 20%. It launched inclusive products such as famous, special, high quality, and new loans, and issued more than RMB 660 billion in operating loans to individual industrial and commercial households, allowing financial flow to benefit thousands of stores. In terms of new consumption, it cooperated with leading payment platforms to carry out preferential activities such as instant consumption discounts. The annual express payment marketing activities drove a transaction volume of more than RMB 80 trillion. Third, smooth cross-border services to make consumption more efficient.
We have addressed the choking points in inbound consumption services with 100% coverage of foreign card cash withdrawal at ATMs. The foreign card acceptance and foreign currency exchange business remained at the forefront of the market. By the end of 2025, the agency tax refund service covered 21 provincial regions, ranking first among peers. The number of tax refund transactions for overseas tourists coming to China increased by more than 150% year on year in 2025. We also launched the Laihua Tong app, an exclusive service platform for overseas personnel coming to China, providing one-stop services for food, accommodation, transport, and travel and shopping. Going forward in 2026, BOC will continue to give full play to its globalization advantages and comprehensive characteristics.
We will continue to carry out the Wan Qian Bai Yi consumer benefit campaign, optimize and implement financial services in the consumption field, serve the overall national interest with financial strengths, fully meet the diversified consumer financial needs of residents, and contribute BOC strengths to a good start of the 15th Five-Year Plan period. First, we will help entrepreneurship and increase income to enhance consumption capacity. We will make every effort to optimize wealth management business, improve professional levels such as product selection, asset allocation, and customer companionship. We will also improve product full lifecycle management capabilities, help residents manage their money bags, and broaden the income channels of urban and rural residents.
We will support the production and operation of enterprises that stabilize and expand employment, strengthen pension financial services, optimize products and services for groups such as new citizens and college graduates, help improve the multilevel social security system, and contribute and release consumption potential from the source. Second, we'll focus on key areas to support consumption upgrading. We will implement an action to improve the quality and benefit of service consumption, optimize labor services based on specific consumption scenarios, refine cultural tourism experiences, and expand characteristic brands such as BOC Hui Chu You. We will also implement policies such as re-lending for service consumption and pension and fiscal interest subsidies and promote the direct transmission of policy dividends to the terminal.
We will continue to carry out the special national subsidy, that is the trading activity, strengthen cooperation with new energy vehicle enterprises, key merchants and leading platforms, and launch activities such as renewal installments and full payment discounts to promote the expansion and upgrading of commodity consumption. Third, optimize the consumption environment to improve consumption experience.
Thank you. Thank you, VP Cai. Let's move on to another question. The lady in the middle.
Dear management team, thank you for the opportunity to ask a question. I'm from Shanghai Securities, Zhang Jingshu. In 2025, BOC completed the supplementary capital, the capital replenishment of RMB 165 billion for common equity Tier 1 capital. Next, what are the BOC's arrangements for loan supply in terms of total volume, structure, and direction?
How will it combine the globalization and comprehensive advantages to accurately allocate the capital of a platform to key areas of the real economy and national strategic tracks?
Thank you. I invite Executive Vice President Liu Chenggang to answer the question.
Thank you for your question. We in 2025 successfully realized a capital replenishment for the BOC to serve the real economy. By the end of 2025, our group's loan balance reached RMB 235 trillion, an increase of RMB 19 trillion or 8.6% compared with beginning of the year. Our group's bond investment balance reached RMB 93 trillion, an increase of RMB 13 trillion or 15.7% compared with the beginning of the year.
The growth rates of corporate and consumer loans both exceeded the average level of the whole society. In terms of corporate banking, more than half of the newly issued loans were invested in industries such as manufacturing, energy, and transportation. At the same time, key support was given to fields such as green credit and Sci-Tech finance. The balance of private enterprise loans exceeded RMB 50 trillion. The growth rates of inclusive green and strategic emerging industry loans all exceeded 20%. There were more than 300 comprehensive operation-linked financial projects. In terms of retail banking, it expanded consumption scenarios, and the balance of domestic personal consumption loans increased by 28%. At the same time, we supported the implementation of a more proactive fiscal policy.
The investment scale of national bonds and local bonds increased steadily and continued to increase bond investments in key areas such as Sci-Tech innovation bonds, green bonds, and private enterprise bonds, leading the market in green bond in investment scale. Overseas, the globalization advantages continued to be consolidated. In 2025, China's total import and export exceeded RMB 450 trillion, a record high, and outward direct investment increased by 7.1% year-on-year, ranking among the top in the world. Foreign trade has shown strong resilience and vitality, and these positive results have been achieved in international use of the RMB. All these have endowed BOC's globalization development with new missions and tasks and provided broader business development space. First, expand the scope of customer services.
We will fully serve enterprises going global, help the cross-border layout of industrial and supply chains. Loans are not only invested in traditional industries but also expanded to emerging fields. We will also increase the marketing and renewal efforts of personal mortgage business. Second, we'll broaden the currency scope. We actively help the international use of the RMB, tailor RMB financing solutions for customers overseas. RMB loans have maintained a double-digit growth rate for three consecutive years, significantly higher than the overall overseas loan growth rate. Third, we have enriched the cross-border financial product system. We issued service plans to support the facilitation of cross-border trade and proactively help utilize foreign trade and foreign investment. We also launched the new generation of BOC's Smart Treasury Management System.
As you have mentioned, capital is a valuable resource for banks to achieve high-quality development. In the process credit supply, we also pay great attention to capital conservation and refined management of RWA. The risk density further decreased in 2025. In 2026, the bank will adhere to the requirements of high-quality development, continue to give play to the guiding role of capital in the allocation of credit resources and conduct reasonable credit supply. We will do well in the following. First, maintain a steady and balanced growth of total credit volume. The group's loan growth rate will remain stable compared with the previous year. The domestic RMB loan growth rate will outperform the market and overseas commercial bank loans will maintain steady growth, among which overseas RMB loans will grow faster.
In the first two months of this year, BOC's RMB credit balance has shown a good growth momentum, laying a solid foundation for achieving the annual credit supply target. Second, the BOC's credit structure will continue to be optimized. We will further carry out the five key tasks of the financial sector in depth. Sci-Tech finance will solidly promote the service connection of the End-to-End Customer Cultivation Program. In terms of green finance, we will further support fields such as clean energy conservation and emission reduction and ecological protection. In terms of inclusive finance, we'll focus on customer groups such as sci-tech, innovation, international settlement, cross-border e-commerce and industrial chain, upstream and downstream. In terms of pension finance, we'll increase support for high-quality projects in fields such as elderly care, elderly products, and smart pension.
In terms of digital finance, we'll actively integrate into digital economy ecosystem, enrich vertical scenario solutions, and meet the full lifecycle financial needs of enterprises. We'll also fully support expanding domestic demand and boosting consumption, support the expansion of effective investment, make forward-looking reserves of national major strategic projects during the 15th FYP period, seize the opportunities of supporting financing business of new policy-based financial tools, and actively connect with key local projects. We will steadily expand personal housing loans and non-housing consumer loans business, promote the coordinated development products, customer groups, and scenarios, and build a complete scenario consumption ecosystem. Thirdly, we will adhere to the core position of the globalization strategy.
We will vigorously improve the quality and efficiency of services for business going global, closely attract the active regions of China's foreign investment, focus on industrial needs of intelligent manufacturing, new energy, new material, biomedicine, et cetera. We will also help enterprises explore the global market and improve the industrial chain layout. We will also actively provide financial services for foreign invested enterprises and provide comprehensive financial service support for Fortune 500 foreign invested enterprises and local leading enterprises in their global operations and investment and operation in China. Fourth, we will implement the package of policies for fiscal and financial coordination to boost the domestic demand.
In the first two months of this year, the BOC deployed in advance and took the lead in the amount of newly issued loans related to SMEs and equipment renewal rank among the top in the industry. We will also fully utilize structural monetary policy tools, solidly carry out credit supply in fields such as sci-tech, innovation and transformation, and carbon emission reductions to benefit more enterprises and projects.
Thank you. Now, next question. First row, left side, second lady.
Thank you. I'm from Phoenix TV. We can see currently the status and influence of the RMB in global payments, reserves and pricing continue to rise. How does the management evaluate the new stage of this process? As the main channel bank for cross-border RMB services, what explorations and innovations has BOC made in the field in this field?
Thank you, Phoenix TV journalist. Promoting RMB's international use is a very important effort of BOC to build China into a stronger country. VP Yang, please answer this question.
Thank you for your question. The continuous rise of the RMB status and influence is supported by a solid economic foundation. First, China's economy is playing an increasingly important role in global economic and trade activities, laying a solid foundation for the international use of the RMB. China is the world's second-largest economy and the largest trading nation. It is also the main trading partner of more than 160 countries and regions around the world.
In 2025, China's total import and export value of goods trade reached about RMB 454.7 trillion, achieving growth for nine consecutive years, and has been the world's second-largest import market for 17 years in a row. RMB has become the world's second-largest trade finance currency. Secondly, RMB has a stable value and reliable credit. More and more countries and market entities are willing to accept and use RMB. Based on the full caliber calculation, RMB has become the world's third-largest payment currency. Presently, central banks or monetary authorities of more than 80 countries and regions have included RMB in their foreign exchange reserves, making RMB a new safe and reliable choice.
Thirdly, infrastructure for the international use of RMB is increasingly improved, providing an important guarantee for expanding the international use of RMB. BOC, Bank of China, has authorized establishment of RMB clearing banks in 34 countries and regions, basically covering countries and regions with close trade ties with China. CIPS has more than 190 direct participants and over 1,500 indirect participants, covering more than 120 countries and regions. Fourthly, the scenario for the international use of RMB are becoming more and more abundant. Products and services are continuously innovated and upgraded. The Multilateral Central Bank Digital Currency Bridge project has provided a new solution that balances efficiency and security for cross-border payment. The cross-border QR code payment has further expanded international use of RMB to the retail industry.
The cross-border payment conduct project provides efficient, convenient, and safe cross-border payment services for mainland residents and overseas residents. As the main channel for cross-border RMB services for a long time, BOC has actively promoted various business areas and achieved a series of positive progress. First, continuously expand the service network and build a global ecosystem for the international use of the RMB. Just now, President Zhang also mentioned that we covered about 64 countries and regions overseas and carried out RMB businesses in 58 countries and regions. 46 served as direct CIPS participants, serving more than 760 indirect participants. It has opened more than 1,600 RMB clearing accounts for overseas participating banks, and the cross-border RMB clearing volume has grown rapidly. We can also support the overseas investment opportunities and investors to join our capital market.
Secondly, continuously improve the efficiency and convenience of cross-border RMB payment and the settlement. In 2025, BOC's domestic branches handled cross-border RMB settlement volume of about RMB 180 trillion, accounting for over 25% of the entire market, and the cross-border RMB settlement under goods trade accounted for more than 30%. The service coverage rate of leading cross-border e-commerce customers exceeded 80%. The RMB settlement volume exceeded RMB 10 trillion, accounting for over 90%. We successfully implemented China-Indonesia cross-border QR code payment project, and was appointed as the sole pilot clearing bank for digital RMB in Laos. Thirdly, support more market entities to issue RMB bonds.
In 2025, we helped more than 30 overseas entities issue panda bonds in China with an underwriting scale of nearly RMB 38 billion, ranking first among panda bond underwriters for 12 years in a row. We also assisted Hungary in issuing RMB 5 billion of panda bonds, setting a record. Fourthly, seize on market opportunities to provide cross-border RMB loans for enterprises. By the end of 2025, the balance of cross-border RMB corporate loans and trade finance provided to enterprises was about RMB 400 billion. We took the lead in arranging an RMB syndicated loan valued at RMB 14.2 billion for Fortescue Metals Group, the world's leading iron ore producer, which is the largest RMB international syndicated loan to date.
We also provided a five-year RMB 3 billion loan to Turkish Airlines, which is the largest single RMB loan in the Turkish market. Fifthly, we actively promote the scenario and advantage of the international use of the RMB to the market and customers. Actively played the role of the Chinese leading unit in multilateral and bilateral trade and investment promotion mechanism and chambers of commerce association. We have 23 overseas institutions serving the present units of overseas Chinese-funded enterprises, chambers of commerce associations, and we also hold RMB internationalization forum in Shanghai and Hong Kong many times and carried out 19 high standard RMB roadshows overseas in 2025, covering key regions such as Asia, Pacific, Europe, Africa, and Latin America.
In the future, we will further highlight our globalization advantage, continuously improve our product and service capabilities, continuously improve the basic conditions, and serve Chinese enterprises going global and foreign companies bringing in China, and act as the main channel of cross-border business, the main force for offshore market development, and a leader in business innovation, and better serve high-level opening up. Thank you.
Thank you, VP Yang. We have the last question to be asked, so please raise your hand. Second row left, third lady, please.
Thank you management. Good afternoon. I'm from China Business Daily. Thank you for the opportunity to ask the last question. I have a question related to digital finance. What are the breakthroughs that BOC has made in digital finance? And going forward, how will BOC further improve customer experience or personal efficiency through digital finance?
Thank you for the question. Now I would like to invite VP Cai Zhao to answer the question.
Thank you for your question.
In 2025, BOC resolutely implemented the decisions and arrangements of the Party Central Committee, balanced the development security, strived to do a good job in the five key tasks, further implemented regulatory requirements such as the implementation plan for the high-quality development of digital finance in banking and insurance industry, and has made the following aspects. First, consolidate the foundation for digital finance development. We optimized the computing power layout and accelerated the construction of independent, controllable, safe and efficient financial infrastructure. We deepened Co-Data, Data Governance and completed the data brand-new storage project and accumulated 94,000 data tablets connected to the group's data lake. We promoted the full application of AI, formulated the AI+ construction plan, focused on the work idea of building platforms, aggregating data, promoting applications.
We also focused on promoting the application and popularization in fields such as marketing, operation and customer service. The intelligent marketing assistant has covered customer managers at all levels. The intelligent Q&A assistant has benefited all network branches, and the remote customer service assistant has covered 90% of business scenarios. We fully used AI for document recognition and review, supporting a total of more than 270 types of document recognition and with a daily average call volume of 1.5 million times, effectively improving operational quality and efficiency. We replaced the repetitive work through automated means, covering more than 3,600 scenario applications with an average of nearly 300,000 tasks executed per month. CICC R&D has achieved intelligent transformation with the number of R&D assistant users exceeding 10,000.
Digital and intelligent empowerment for the group's globalization development, relying on overseas information centers, built a global AI empowerment system and effectively improved the regulatory compliance and risk prevention. Second, we empowered the improvement of quality and efficiency of financial services. We continuously upgraded the experience of corporate online service channels. Domestic corporate online banking has added products such as electronic invoices and shipping express services. Overseas corporate online banking covers 56 countries and regions providing services in 14 languages. The monthly active users of personal mobile banking exceeded 100 million, a year-on-year increase of 7.11%. Overseas personal mobile banking covers 31 countries and regions around the world, providing services in 12 languages.
We have actively promoted the use of digital RMB with accumulative consumption amount of RMB 27.762 billion and accumulated number of effective merchants of 13.69 million households in the year. We have also created the cross-border e-commerce settlement product, BOC Cross-border E-Commerce Connect, with annual transaction volume exceeding the RMB 1 trillion mark for the first time. We promoted overseas institutions to connect with local clearance systems and directly participate in 96 overseas local clearance systems in 2025. We basically built a global custody service network and took the lead among Chinese-funded peers in building a centralized clearance business model for global capital pools and 7×24 operation guarantee mechanisms, realizing real-time receipt of overseas fund transfers. Third, we established an intelligent risk prevention and control system.
We established an integrated mechanism of intelligent risk control for head office branches and sub-branches and strengthened the control of unified credit system. We have also built a concentration risk review, risk view, display to provide digital support for concentration risk management and asset quality management. We created a group comprehensive risk management portal with a daily average call volume of more than 200,000 times, providing intelligent tools for comprehensive risk management. We have also built an intelligent risk control 1 + N model system and optimized the digital and intelligent transformation mechanism. Going forward, BOC will fully implement the direction of the national 15th FYP, the spirit of the Central Financial Work Conference, and the overall strategic deployment of the group's 15th FYP, promote the high-quality implementation of the FYP-related plans for digital finance and fintech.
Take data plus technology as the dual drivers, focus on the full-process digital transformation of financial services, continuously deepen the integration of business data and technology, and fully empower the five key tasks. First, fully implement the AI+ initiative, drive the digital and intelligent transformation of the entire bank. We have established agile and reliable AI governance mechanism and created AI application paradigms focusing on the needs of core business scenarios. Secondly, we have deeply participated in the Data Factor × initiative in the financial field, deepened large-scale application of data in fields such as operation, risk control and decision-making, and fully released the value of data factors.
Third, we will actively integrate into the digital economy ecosystem, improve industrial digitalization and digital public service capabilities, promote the construction of open banking, and steadily develop digital RMB to better serve the economic and trade development of China.
Thank you, Vice President Cai Zhao. Due to the time constraint, that's all for the Q&A session for our media. If you have further questions, please contact us at a time convenient for you. This is the first year for the 15th Five-Year Plan. BOC will continue to work hard and undertake our responsibilities for the implementation of the plan. Please also pay attention to our efforts in serving the broader economy and high-quality opening up and our results. In doing so, we are more than ready to tell the stories of the new journey together with you.
That's all for today's press conference. Thank you.