(Yicai) May 12 -- Performance among China’s private banks is becoming increasingly uneven. WeBank, backed by internet behemoth Tencent Holdings, generated nearly 60 percent of all the profits of private banks last year, while at the other end of the spectrum, Yillion Bank posted a heavy loss of CNY1.5 billion (USD221 million), making it the only unprofitable private bank.

Eighteen out of China’s 19 private banks reported an overall decline of 1.8 percent in operating revenue last year from the year before to CNY89.9 billion (USD13.2 billion), according to their 2025 financial statements. Only Z-Bank has yet to release its results.

Just two banks generated more than CNY10 billion (USD1.4 billion) in revenue. One was WeBank, in which Tencent holds a 30 percent stake, which posted a 4.8 percent drop in revenue to CNY36.2 billion while MyBank, whose largest shareholder is fintech giant Ant Group which also owns 30 percent equity, logged a 3.5 percent dip to CNY20.5 billion.

The 18 banks’ combined net profit climbed 1.9 percent last year from 2024 to CNY18.6 billion (USD2.7 billion). WeBank, which was China’s first private bank, logged a 1 percent increase in net profit to CNY11 billion, meaning it generated 60 percent of the profits of all the private banks. MyBank reported a 4 percent jump in net profit to CNY3.3 billion.

In terms of size, four private banks, namely WeBank, MyBank, SMB and XWBank, had total assets exceeding CNY100 billion (USD14.7 billion) as of the end of last year. SMB and XWBank reported assets of CNY165.5 billion (USD24.3 billion) and CNY112.5 billion respectively.

WeBank and MyBank continue to dominate the sector thanks to strong shareholder backing and established application scenarios. Their aggregate assets are 1.3 times larger than those of the other 16 private banks combined. Shenzhen-based WeBank’s total assets reached CNY766.3 billion (USD112.7 million) at the end of last year, while Hangzhou-based MyBank’s stood at CNY504.6 billion.

Weaker Performers

However, four lenders, Jiangxi Yumin Bank, OneBank, Blue Ocean Bank and Yillion Bank, saw their total assets shrink. Yillion Bank’s assets plunged 47.4 percent, a trend known in the industry as ‘balance sheet contraction.’

Over the past two years, Yillion Bank has accumulated losses of over CNY2 billion (USD294,000), with its cost-to-income ratio soaring to 118.1 percent meaning that it spends CNY1.18 (USD0.17) for every CNY1 it earns.

Shrinking balance sheets are not a systemic crisis but rather a sign of structural differentiation, said Dong Ximiao, chief economist at CMB-China Unicom Consumption Finance and deputy director of the Shanghai Institution for Finance and Development.

Private banks in China are relatively young, with different shareholder backgrounds and business models, said Dong. After an early phase of rapid expansion, the industry will inevitably face a period of consolidation.

Leading banks with strong shareholder ecosystems and technological capabilities are continuing to grow, while smaller players without core competitiveness are scaling back, he said. This is a normal phenomenon as the industry matures.

Editor: Kim Taylor