Chinese banks maintained a pattern of modest, low single-digit profit growth and weaker returns throughout 2025, though some lenders saw slight improvements in net interest margins (NIMs) in the final quarter, according to CreditSights, part of Fitch Solutions.
In a March 2026 report covering 10 Chinese banks, CreditSights noted that NIMs rose by 2 to 5 basis points in three banks, were unchanged in another three, and declined by 2 to 4 basis points in two others.
Among the Big Five banks—ICBC, China Construction Bank, Agricultural Bank of China, and Bank of Communications (BOCOM)—gross loans expanded by 7% to 9% over the full fiscal year.
By contrast, joint-stock commercial banks recorded slower loan growth of 1% to 6% during the same period. These included China CITIC Bank, China Everbright Bank, Shanghai Pudong Development Bank, Industrial Bank, and China Minsheng Bank.
Fee income grew at a low- to mid-single-digit pace over the year, driven mainly by wealth management-related fees, while credit card income continued to weigh on performance.
Meanwhile, other non-interest income faced pressure from unfavorable bond yield movements and a high base effect from FY2024.
CreditSights also highlighted that asset quality risks were primarily concentrated in retail lending, inclusive finance, and property-related corporate exposures.
Click here for more on Banking
