China’s Private Banks Diverge: WeBank Leads, Yillion Falls Behind

Performance among China’s private banks is becoming increasingly uneven. WeBank, backed by a major internet company, accounted for nearly 60 percent of the total profits of private banks last year. Meanwhile, Yillion Bank posted a significant loss of CNY1.5 billion (USD221 million), making it the only private bank to be unprofitable.

Out of China’s 19 private banks, 18 reported a total operating revenue decline of 1.8 percent last year compared to the previous year, reaching CNY89.9 billion (USD13.2 billion), based on their financial statements for 2025. Only Z-Bank has not yet released its results.

Only two banks surpassed CNY10 billion (USD1.4 billion) in revenue. WeBank, in which a tech giant holds a 30 percent stake, experienced a 4.8 percent decrease in revenue to CNY36.2 billion. MyBank, with an anchor shareholder also owning 30 percent—another fintech giant—saw a 3.5 percent drop to CNY20.5 billion.

The combined net profit for these 18 private banks increased by 1.9 percent last year from 2024, reaching CNY18.6 billion (USD2.7 billion). WeBank, the first private bank established in China, saw a 1 percent rise in net profit to CNY11 billion, accounting for 60 percent of all private bank profits. MyBank reported a 4 percent increase in net profit, reaching CNY3.3 billion.

Regarding size, four private banks—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 thanks to solid shareholder backing and well-established application scenarios. Their combined assets are approximately 1.3 times larger than those of the other 16 private banks combined. WeBank, based in Shenzhen, had total assets of CNY766.3 billion (USD112.7 billion), while Hangzhou-based MyBank’s assets stood at CNY504.6 billion.

Underperforming Banks

However, four banks—Jiangxi Yumin Bank, OneBank, Blue Ocean Bank, and Yillion Bank—experienced declines in total assets. Yillion Bank’s assets contracted by 47.4 percent, a decline industry observers refer to as “balance sheet contraction.”

Over the past two years, Yillion Bank has accumulated losses exceeding CNY2 billion (USD294 million), with its cost-to-income ratio reaching 118.1 percent. This means it spends CNY1.18 (USD0.17) for every CNY1 earned.

These shrinking balance sheets don’t indicate a systemic crisis but are viewed as part of structural differentiation within the industry, explained a chief economist at a financial research institute. He noted private banks in China are relatively young, with diverse shareholder backgrounds and business models. After an initial phase of rapid expansion, industry consolidation is inevitable.

Strong financial institutions with robust shareholder support and technological capabilities are continuing to grow, while smaller, less competitive players are scaling back. This pattern of industry evolution is considered normal as the sector matures.