Chinese Banks FY25: NIM Relief, Asset Risks Linger

Chinese Banks FY25 NIM Relief Asset Risks Linger

Chinese Banks FY25: NIM Relief, Asset Risks Linger

Karen Wu, CFA: Senior Analyst, Financials - CreditSights

31 March 2026

Download the Full Report to gain insights on:
  • How margin trends in FY25 signal a potential inflection point for net interest income amid still soft credit demand.
  • What Chinese Banks FY25 NIM Relief Asset Risks Linger reveals about earnings durability across large state banks and joint stock peers.
  • Why asset quality pressures from retail borrowers, inclusive finance, and property exposures continue to warrant close credit monitoring.
  • How funding mix shifts, deposit behavior, and loan growth patterns influence balance sheet resilience into 2026.
  • Where credit costs, capital buffers, and policy support may shape relative stability for bank creditors going forward.

Executive Summary

  • In this note, we summarize the FY25 operating performances for the Chinese banks under our coverage, namely the Big 5 banks (ICBCAS, CCB, BCHINA, AGRBK and BOCOM) and 5 JSBs (CHINAM, CINDBK, CHEVBK, SHANPU and INDUBK).
  • Chinese banks’ FY25 results continued the trends seen in previous quarters, characterized by low-single-digit profit growth and lower returns.
  • A key highlight of the results was the QoQ performance of 4Q25 NIMs, which rose by 2-5 bp at three banks, remained flat at three banks, and fell by 2-4 bp at only two banks; on a YoY basis, NIMs declined by 7-17 bp.
  • Fee income generally posted low- to mid-single-digit growth in FY25, supported by wealth-related fees, while credit card income remained a key drag.
  • Other non-interest income was pressured by unfavorable bond yield movements and a high base in FY24.
  • Credit costs were stable or lower YoY to support profit growth, standing at 46-64 bp at the Big 5 banks and CHINAM, and 92-119 bp at the JSBs.
  • Asset quality risks were concentrated in three areas: retail, inclusive finance, and property corporates.
  • As is typically the case, loan growth was low in 4Q; for the full year, gross loans grew by 7%-9% YoY at the Big 5 banks and by 1%-6% at the JSBs, lagging FY24 growth of 8%-10% and 4%-7%, respectively.
  • CET1 ratios were largely stable QoQ but mostly lower YoY, due to faster growth in corporate loans, which typically carry higher risk weights than retail loans.

Fill out the below form to view the full article:

Please note that we can only respond to valid business email addresses and the interview is already available to clients.

Recently Published

Research
AllCovenant-ReviewAutosUS CR Quarterly Q1BasicLevFin-InsightsTelecommunicationsMay GMUFinancialsCreditSights-ResearchUtilitiesCase Studiesshow-homeshow-initiation page-homeMunicipalsSLRsTMTAsset Management ResourcesPharmaceuticalsJune GMUEnergyResearchGaming/LeisureWebinar Related ResourceIndustrialsPoliticsMediaUS Special Sits OutlookConsumerTariffsSpecial SituationsEuro Autos: Barbarians at the GatesCorporatePrivate CreditAerospace/DefenseU.S. Autos Expert PanelCovenantsBondsReal EstateEU Special Sits OutlookStrategyPost PetitionServicesJuly GMUESGChemicalsIranAsia in Focus 2H26ESG-HomeEmerging MarketsBanksEM OutlookOutlooks-HomeTransportationConstructionEMEA CR Quarterly Q2TechnologyInsuranceAsia in focus webinarUS CR Quarterly Q2ManufacturingEMEA CR Quarterly Q1Global Credit for ME Investors
MPT 2Q26: Secured Refinancing | Rec Rerack

MPT 2Q26: Secured Refinancing | Rec Rerack

August 14, 20261 min Read More
European Direct Lending Rated Note Feeders
EMEA Insight: Rated feeders offer a road into European direct lending with lighter capital burden

EMEA Insight: Rated feeders offer a road into European direct lending with lighter capital burden

August 14, 20261 min Read More
European Liability Management: Double-O Dropdown, Aston Martin Primes the Bonds Again
European Liability Management: Double-O Dropdown, Aston Martin Primes the Bonds Again

European Liability Management: Double-O Dropdown, Aston Martin Primes the Bonds Again

August 14, 20261 min Read More
Trinseo
US Bankruptcy: Trinseo, excluded lenders square off in confirmation opening arguments

US Bankruptcy: Trinseo, excluded lenders square off in confirmation opening arguments

August 14, 20261 min Read More

Stay in the loop with the latest credit insights direct to your inbox