Core Viewpoint - The six major banks in China reported a combined net profit exceeding 1 trillion yuan for the first three quarters of 2025, indicating stable profit growth and improving asset quality, while facing pressure on net interest margins [1][2]. Group 1: Profit Growth - The six major banks achieved a total net profit of 1.07 trillion yuan, demonstrating strong profitability despite efforts to support 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: 1.90% for Bank of Communications, 1.08% for China Bank, and lower rates for Postal Savings Bank, China Construction Bank, and Industrial and Commercial Bank [2]. - All six banks reported year-on-year increases in operating income, with China Bank and Industrial and Commercial Bank both exceeding 2% growth [2]. Group 2: Asset Quality Improvement - The non-performing loan (NPL) ratios for all six banks decreased compared to the end of the previous year, enhancing their risk resilience [4]. - Postal Savings Bank had the best asset quality with an NPL ratio of 0.94%, while other banks maintained NPL ratios between 1% and 2% [4]. - Agricultural Bank had the highest provision coverage ratio at 295.08%, providing a solid buffer against potential credit risks [5]. Group 3: Net Interest Margin Pressure - The banking industry continues to face downward pressure on net interest margins, with Postal Savings Bank reporting a margin of 1.68%, despite being the highest among the six banks [5][6]. - The overall net interest margin for commercial banks was reported at 1.42% for Q2 2025, reflecting a decline from previous periods [6]. Group 4: Strategies for Margin Stabilization - Banks are focusing on optimizing asset structures and reducing costs on the liability side to address the pressure on net interest margins [7]. - There is a strategic emphasis on supporting key sectors such as manufacturing and green development, with Postal Savings Bank increasing its green loan balance significantly [7]. - Analysts expect a stabilization in net interest margins in the coming quarters, aided by policy support and proactive industry transformation [8].