Chinese banks report weak profit amid mixed margin trends

Gross loan growth was in the single digits, same as fee income.

Chinese banks continued its trend of low single-digit profit growth and lower returns for the whole year of 2025, although some banks’ net interest margins (NIM) inched up in the final quarter of the year, noted CreditSights by Fitch Solutions.

NIMs rose between 2 basis points (bp) to 5bp in three banks, remained flat in three other banks, and fell by 2-4 bp at 2 banks, CreditSights said in a report on Chinese Banks published in March 2026, analyzing the data from 10 banks in China.

Gross loans grew by 7% to 9% for the full fiscal year at the Big 5 banks—ICBC, China Construction Bank, Agricultural Bank of China, and Bank of Communication (BOCOM).

Gross loan growth of Joint Stock Commercial Banks, meanwhile, was between 1% to 6% for the period. JSCBs measured include China CITIC Bank, China Everbright Bank, Shanghai Pudong Development Bank, Industrial Bank, and China Minsheng Bank.

Fee income posted low to mid-single digital growth during the fiscal year, supported by wealth-related fees. Credit card income remained a key drag.

Other non-interest income was pressured by unfavorable bond yield movements, and the high base of FY2024, CreditSights said.

Asset quality risks were concentrated in three areas: retail, inclusive finance, and property corporates, it added.