China Merchants Bank (CMB), long celebrated as the 'Retail King' of the nation’s banking sector, has ignited a firestorm of controversy following a tone-deaf defense of its corporate culture. During the bank’s 2025 annual results conference, Chairman Miao Jianmin identified the bank’s primary 'moat' not as its financial technology or retail dominance, but as a culture where employees 'rarely leave on time.' This glorification of overtime work immediately trended on social media, highlighting a deep disconnect between corporate leadership and a workforce increasingly weary of 'involution' and the '996' grind.
Miao’s comments come at a precarious moment for the bank’s labor relations. Internal data reveals that average employee compensation actually declined in 2025, falling from 581,000 RMB to approximately 564,900 RMB. For many observers, the Chairman’s pride in staff 'dedication' looks less like a strategic advantage and more like a reliance on labor exploitation to maintain performance in a cooling economy. Public sentiment has been swift and harsh, with critics arguing that such a culture is a systemic failure rather than a source of competitive strength.
Financially, the bank’s 2025 performance paints a picture of a giant struggling to maintain its momentum. While CMB reported a net profit of 150.18 billion RMB—equivalent to earning 411 million RMB every day—its core retail engine is showing signs of fatigue. Credit card transaction volumes plummeted by over 330 billion RMB compared to the previous year, leading to significant drops in both interest and fee-based income from the segment. This contraction suggests that even the most affluent consumer segments in China are tightening their belts.
Adding to these structural headwinds is a deteriorating risk profile and a growing list of regulatory infractions. The bank’s retail non-performing loan (NPL) ratio climbed to 1.06%, while its provision coverage ratio—a key buffer against bad debt—saw a notable decline. Furthermore, CMB was hit with 30 regulatory fines in 2025, totaling more than 25 million RMB. These penalties, which covered issues from credit mismanagement to data inaccuracies, suggest that the high-pressure culture praised by management may be eroding the bank’s internal controls and compliance standards.