Good morning, ladies and gentlemen. Welcome to 2015 results announcement by China Merchants Bank. I am the Secretary of the Board of Directors, Xu Shiqing. Now, I would like to introduce the bank's management who are present today. They are Mr. Li Jianhong, Chairman of China Merchants Bank. Mr. Li Hao, First Vice President and Chief Financial Officer. Mr. Liu Jianjun, Vice President of China Merchants Bank. Mr. Wang Liang, the Vice President of China Merchants Bank. President Tian Huiyu cannot join us today since he is on overseas visits with national leaders. The conference is also attended by Mr. Hong Xiaoyuan, Non-Executive Director, as well as Chiefs of relevant departments. Our guests today include investors and analysts from mainland China and overseas. On behalf of China Merchants Bank, I would like to welcome you all to the conference. Thank you for your interest in China Merchants Bank.
Now, please allow me to introduce the schedule of today's presentation. Chairman Li Jianhong will review the highlights of annual results of 2015. Vice President Li Hao will analyze the operation performance. Chairman Li will then discuss the prospects of 2016 strategy. We will then move on to a Q&A session. There will be simultaneous interpretation in English for both results presentation and Q&A session. Now, I would like to pass the floor to Chairman Li. Mr. Li, please.
Ladies and gentlemen, welcome to 2015 annual results presentation. First of all, let me give an overview of 2015 annual results. In 2015, the group has overcome various unfavorable factors, adherence, balanced development of efficiency, quality, and scale, proceed with strategic transformation, and maintained a satisfactory performance. Net profit improved by 3.19% year-on-year. ROA and ROAE amounted to 1.13% and 17.09% respectively.
Slightly decreased, but also remained at a sound level. In view of the macroeconomic downturn, NPL ratio is 1.68%. Overall risk was under control. Total assets achieved satisfactory growth of 15.71% as compared with the beginning of the year. Total deposit and gross loans increased by 8.09% and 12.35% respectively. In 2015, the bank steadily pushed forward the strategic transformation with further strengthened profitability. Pre-tax profit of real finance business increased by 19.54% and accounted for 50.47% of total pre-tax profit, up by 7.73 percentage points compared to the last year.
Net non-interest income is CNY 59 billion, up by 33.7% year-on-year, up by 2.76 percentage points. Net interest margin was up by 11 percentage points year-on-year, despite the rate cuts. In 2015, the company continued to optimize the business structure. The percentage of gross loans and advance to total assets went down as compared to the beginning of the year.
Percentage of retail loans to total loans was up by 4.91 percentage points compared to beginning of the year. Percentage of demand deposits to total deposits went up by 7 percentage points. Of the total operating income, the percentage of retail finance income went up by 2.93 percentage points, and financial institutions up by 1.81 percentage points. In 2015, the progress of asset-light banking was achieved gradually. Percentage of RWA to total assets was 62%, down by almost 3 percentage points as compared to the beginning of the year. RWA growth of the bank was 10.69%, and net operating income growth was 21.48%, both achieved with less capital consumption. Aggregate issue volume of securitization of credit assets amounted to CNY 51.66 billion. Up by 80% year-on-year, with a number one market share of approximately 7% among domestic commercial banks. ROE stayed relatively high at 21%.
Cost-to-income ratio was further improved to 27.28%, down by 3 percentage points. The bank vigorously pushed ahead with development of internet and mobile channels, and e-banking channel replacement ratio improved continuously. Counter replacement ratio of retail banking channels further improved to 97%, up by almost 2 percentage points compared to the previous year. Accumulated number of mobile bank transactions was 535 million, up by 137% year-on-year. Replacement ratio of non-cash transactions at visual electronic counters achieved 20.48%. Counter replacement ratio in respect of corporate banking, e-banking channels achieved 59%. Replacement ratio of online corporate banking settlements achieved 95.5%. Upholding One Body with Two Wings strategy, the bank achieved balanced development of retail, corporate, and financial institutions' finance business. Net operating income from retail finance maintained a rapid growth of 30% due to weak external demand interest cuts, decline in exports and imports, and business structural adjustment.
Net operating income of our corporate finance business was lightly down by 3.78%. Net operating income from the financial institutions' finance has recorded a strong growth of 40%. Satisfactory achievements were made as the b ank promoted one body to play a bigger role in driving the development of two wings. The company risk management proved resilient to challenges, with capital position improved. The group adopted prudent satisfaction criteria for NPLs. Ratio of its NPLs to loans overdue more than 90 days was stable at 1.05. Loan allowance ratio, 3%. Impairment loss on assets is CNY 559 billion, up by 87% as compared to the previous year. Capital adequacy ratio and CET ratio improved steadily under both advanced and weighted methods. Its risk compensation capacity for unexpected losses further improved.
The group continued to enjoy tremendous social recognition, winning several domestic and international awards, including the first of top ten most respected public companies in China, Best Retail Bank in China, Best Private Bank in China, and Best Cash Management Bank in China. This is a brief review of our performance in 2015. Next, I would like to invite the Senior Executive Vice President, Mr. Li Hao, to present detailed operational information in 2015.
Thank you, Chairman Li. Next, let's take a look at the company's operation information in 2015. The b ank continued to improve its competitive advantages in retail banking. Number of retail customers of the company reached 66.94 million, up by 19%. Total number of all-in-one cards is 91.16 million, up by 19.93%. Number of Sunflower level and above customers reached 1.6 million, up by 27.76% compared to the beginning of the year.
AUM from our retail customers up by 37%. AUM from Sunflower level and above customers amounted to CNY 3.7 trillion, up by 43%. The net non-interest income from retail finance amounted to CNY 26 trillion, up by 50%. Cost to income ratio of retail finance was 35%. ROE was 80.4% for retail banking. Asset liability structure of its retail finance business is further enhanced. Total retail loans of the company amounted to CNY 1.21 trillion, up by 26% as compared with the beginning of the year. During the economic downturn, China Merchants Bank took initiative to adjust business structure, increased extension to low-risk residential mortgage business while actively supporting the credit card business. Balance of residential mortgage amounted to CNY 491 billion, up by 50%, representing 40% of the total loans.
Balance of deposits from retail customers, representing an increase of 11%, of which the percentage of demand deposits was 71%, up by 10 percentage points. The bank managed to maintain loan funding costs with annualized average cost of deposits from retail customers of 1.3%, down by 0.32 percentage points year- on- year. Private banking business experienced rapid growth. The bank had 59,000 private banking customers, up by 50% as compared to the beginning of the year. AUM from private banking customers amounted to CNY 1.25 trillion, up by 66% as compared with the beginning of the year. Average AUM per account was CNY 25.54 million. The company established eight private banking centers with a total new reach to 55. Net operating income from customers holding private banking cards amounted to CNY 4.8 billion, up by 32%. Wealth management.
Fee and income commission from retail wealth management business amounted to CNY 17.1 billion, up by 83%, among which income from distribution of funds, from distribution of third-party insurance policies, from entrusted wealth management, and income from distribution of third-party trust plans experienced fast growth of 164%, 32%, 54%, and 63% respectively. Credit card business maintained robust growth. Number of credit cards users was 31 million, increase of 19% year- on- year. Cumulative transactions volume of credit cards grew by 36.67%. The percentage of revolving balance of credit cards was 24.72%. Balance of credit card overdrafts was up by 48% as compared to the beginning of the year. Interest income and non-interest income from credit card increased by 56% and 39% respectively. The company steadily pushed forward the structural adjustment of corporate finance and enhanced foundation of the business. Number of corporate deposits up by 36%.
The total small enterprises customers grew by 56%. Total number of [Non-English content] up by 25%. Balance of loans granted to [Non-English content] customer increased by 22%. Balance of corporate customer deposits increased by 7%. Demand deposits accounted for 50.11% of total corporate deposits. There was an increase of 5.3 percentage points. Average cost of deposits from corporate customers was 2.06%. Transaction banking business achieved fast growth. In terms of cash management business, total number of cash management customers reached a growth of 52%. The bank secured 572 core customers in supply chain, and the customers from upstream and downstream industries. Balance of supply chain finance amounted to CNY 68 billion. Cumulative transaction value of our corporate online banking transactions increased by 72%. Cumulative number of corporate online banking transactions increased by 71%. Number of onshore customers of our international business reached 66,000, representing growth of almost 20%.
Market share of foreign exchange settlements was 4.48%. Amount of domestic trade finance increased by 16%. Offshore international settlement increased by 48%. As a breakthrough to build asset-light banking, our investment banking business has been expanding rapidly in 2015. Debt financing instruments underwritten increased by 65% year- on- year. Number of bonds underwritten increased by 62%. Granted value of M&A financing activities went up by 65%. Financial institutions business continued to record stable growth in value contribution. Financial institutions finance realized pre-tax profit up by 42%, accounted for 33% of the profit before tax of the bank. Operating income of financial institutions business was up by 40% year-on-year. Net interest income was up by 24%, and net non-interest income was up by 56% as compared with the previous year. In 2015, interbank business achieved stable growth.
The total number of customers under third-party custody business was up by 52% as compared with the beginning of the year. Balance of funds under the third-party custody, up by 53%. Balance of placement from banks and other financial institutions reached CNY 700 billion, for which demand deposit accounted for 58%. Trade amount of discounted bill business reached CNY 33 trillion, up by 270% as compared to the previous year.
Volume of interbank cross-border RMB clearing service up by 180%. Asset management business maintained a very strong growth momentum. The balance of wealth management products under operation by the company amounted to CNY 1.82 trillion. The balance of net worth products amounted to CNY 961 billion, up by almost 300% as compared to the beginning of the year. Net worth products accounted for 52% of the balanced wealth management. As the company implemented a stringent risk control on equity-linked wealth management business.
The risk exposure of the asset management business is under control during violent fluctuation in equity markets. Asset custody business experienced rapid growth. Balance of assets under custody amounted by 102% as compared with the beginning of the year. Custody fee income amounted, representing increase of almost 70%. The company established a relatively balanced and diversified business structure covering five major customer bases, including fund, brokerage, insurance, trust, and PE. The number of custody projects increased by 48% compared to the beginning of the year. Financial market business was well development. Spot trading volume increased by 55%. Of the bond investment, 75% are issued by MOF or policy banks with sovereign credit ratings. Trading volume of our RMB-denominated options increased by 99%. Trading volume of our RMB interest rate swap business increased by 1,261%. Trading volume of RMB exchange rate swaps increased by 50%. Comprehensive financial services continued to grow.
Total assets of Wing Lung Bank grew by 3.8%. Net profits of CMB Financial Leasing improved by 5%, and total assets of our CMB International Capital went up by 26%. AUM of China Merchants Bank was up by 103%. Cigna & CMB Life Insurance was up by 48%. The bank has vigorously developed mobile banking to establish service platform. With respect to retail finance, aggregate number of mobile banking customers, annual active customers reached number of our CMB Life subscribers and the number of our active users all increased. With respect to corporate finance, a number of registered customers of small business, e-Home, and number of our customer using mobile check service also increased rapidly. With respect to financial institutions, as the end of 2015, number of interbank customers acquired on the Zhao Yin Tong platform was 731.
As a result of adverse impact from the economic downturns, overall NPL balance and ratio of the bank sectors has been increasing. In response to grave risk environment in 2015, the bank strengthened its risk management measures, including continue to improve the comprehensive risk management system and centralized risk management mechanism, solidified the management and front, middle, and back defense assignments, tightened customer onboarding criteria, optimized asset portfolios, and streamlined asset structure. Tightened monitoring and control over the asset quality, deepened risk warning examinations and supervision. Introduced innovative approaches for disposal of NPLs so as to dispose of NPLs aggressively through different means. Steadily increased applications of quantitative risk management tools, asset quality of the company is well under control. Corporate NPL ratio, 2.6%. Retail NPL ratio, 1.08%. Credit card NPL ratio, 1.37%. The bank disposed NPL in time. Accumulated amount of disposed NPLs reached to CNY 38 billion.
Now, please welcome Chairman Li will talk about outlook and strategy.
Thank you. I will introduce the outlook and strategies of the company. Looking into 2016, economic and financial conditions in China and globally remained complicated and uncertain. Globally, impact of a global financial crisis remained economic weakness, diminished prospects and growth. Uncertainty around economic growth increased as countries will compete more fiercely in areas as energy trade and technology. Risk across the global financial markets will increase with heightened volatility in interest rates, exchange rates, commodity prices, and cross-border capital flows. Domestically, the risk increased due to more frequent changes in monetary policies from the Fed and the European Central Bank. Domestically, the Chinese economy is entering into the period of new normals with slower economic growth.
Banks will face higher requirements for operations management and increased business risk from a more complicated environment as the key phases of structural adjustments achieved with completion of interest rate liberalization proceeds and accelerated financial disintermediation. Competitors from within the outside the sector will intensify the competition, imposing pressures on the bank's profitability. At the time, national 13th Five-Year Plan has provided clear directions. Prudent monetary policies and proactively fiscal policies will help stabilize the real economy. The upgrade of traditional industries, infrastructure construction, urbanization, construction, and public services represent significant business opportunities. With rapid development of the modern services sector, new economies and number of emerging strategic industries may become the new engine for the bank's growth. Reform benefits will be released as the supply side reform progresses further, leading to more M&A and restructuring in which banks may explore business opportunities.
Chinese companies entering into international markets, RMB internationalization, and One Belt, One Road national strategy provides commercial banks with growth potential in cross-border business. Rising households' disposal income, upgrading in consumption pattern and lifestyle, and increasing standard of living implies optimistic outlook. Establishment of a multilayered capital market and accumulating social wealth may bring huge growth potential to wealth management and asset management. In face of the challenges and opportunities in a new environment, the banks will adhere to the philosophy of a balanced development of efficiency, quality, and scale, and development strategy of asset-light banking, and One Body with Two Wings strategy. Key measures to be taken in 2016 include, firstly, we'll improve our comprehensive risk management capacities with focus on enhancement of credit risk management. Secondly, we will further refine our business structure through asset liabilities, customers, and commitment of resources.
Thirdly, we will strive to achieve mechanism optimization and process reengineering to continue the reform. Fourthly, we will implement rigid management to foster a team of talents and corporate culture that are beneficial to the sustainable long-term development of the bank. Above is the review of 2015 business reform and outlook in 2016. Thank you.