1. China's major banks exhibited mixed earnings in 2025, pressured by margins and retail credit risks [para. 1].2. The "Big Six" state-owned banks achieved average revenue growth of 2.41%, up 2.24 percentage points from 2024, with net profit rising 1.72%, up 0.08 points [para. 2].3. ICBC and CCB saw revenue growth resume, while BOC led with 4.48% expansion [para. 3].4. Conversely, the 10 listed joint-stock banks averaged 2.18% revenue decline, worsening from 0.64% in 2024, and net profit fell 1.34% from 2.45% growth [para. 4].5. Ping An Bank, China Zheshang Bank, and China Everbright Bank faced steepest revenue drops [para. 5].6. Differences stem from income structures and market sensitivity; Big Six gained from fee/commission recovery and stable markets, joint-stock banks hit by bond volatility per GF Securities [para. 6].7. Net interest margins declined sector-wide, though slower for some, pressuring net interest income [para. 8].8. CMB President Wang Liang anticipates narrowing NIM decline but significant NII pressure in 2026 due to weak credit demand, competition, and stable liability costs [para. 9][para. 10].9. ICBC's Yao Mingde expects NII growth in 2026 absent major rate cuts [para. 11].10. Non-interest income buffered Big Six, with BOC, CCB, ABC up ~20%; joint-stock banks mostly declined due to fair-value asset exposure and bond volatility, per GF's Ni Jun [para. 12][para. 13].11. Fee/commission income recovered: all Big Six grew, six joint-stock banks turned positive, three narrowed declines [para. 14].12. Retail asset quality deteriorated; personal loan NPL ratios rose for Big Six—ICBC +43 bps, ABC +31 bps, BoCom +50 bps; ICBC credit cards hit 4.61% (+111 bps) [para. 16].13. BoCom's Gu Bin highlighted ongoing retail/small business strain [para. 17].14. Banks bolstered controls: ICBC formed personal credit department, others disposed NPLs [para. 18].15. Big Six cost-to-income ratio improved to 35.27%, down 53 bps [para. 19].16. Lenders pursue overseas growth; Industrial Bank's Lü Jiajin targets top-tier international status in 2-3 years [para. 20][para. 21].17. BOC's overseas business yielded 28% of profit, outpacing domestic growth amid rising cross-border demand and yuan internationalization, per President Zhang Hui [para. 22][para. 23].(Word count: 498)AI generated, for reference only
Analysis: China Banks Split as Margins Squeeze and Retail Risks Rise
‘Big Six’ state lenders outperformed smaller peers in 2025, as weak credit demand and intensifying competition continued to weigh on loan yields






