Zhong Guo Zheng Quan Bao·2025-10-30 21:12Core Insights - The six major banks in China reported a total net profit exceeding 1 trillion yuan for the first three quarters of 2025, indicating stable profit growth despite pressures on net interest margins [1][2] - The banks are facing challenges with net interest margin compression, prompting them to explore strategies for optimization and structural adjustments [5][6] Profit Growth - The combined net profit of the six major banks reached 1.07 trillion yuan, showcasing strong profitability even while supporting the real economy [2] - Agricultural Bank led the growth with a 3.03% year-on-year increase in net profit, while other banks showed varying growth rates, with Industrial and Commercial Bank at 0.33% [2] Revenue Performance - All six banks reported year-on-year growth in operating income, with notable increases from China Bank and Industrial and Commercial Bank, both exceeding 2% [3] - China Bank's total assets surpassed 37 trillion yuan, with significant contributions from cross-border financial services [3] Asset Quality Improvement - The asset quality of the six banks improved, with all reporting a decrease in non-performing loan (NPL) ratios compared to the end of the previous year [4] - Postal Savings Bank had the lowest NPL ratio at 0.94%, while other banks maintained ratios between 1% and 2% [4] Net Interest Margin Pressure - The net interest margin for the banks has been under pressure, with Postal Savings Bank reporting a margin of 1.68%, despite being the highest among the six [5] - The overall industry net interest margin continued to decline, with a reported 1.42% in Q2 2025, down from 1.54% year-on-year [5] Strategies for Margin Stabilization - Banks are focusing on optimizing asset structures and reducing costs on the liability side to counteract margin pressures [6][7] - There is an expectation of stabilization in net interest margins moving forward, with analysts predicting a narrowing of the decline in margins for 2026 [7]