This year, the amount of deposits maturing has increased. The management of Bank of Communications expects net interest margin to stabilize and improve. Since March, the number of mortgage applications has significantly increased.

Ask AI · How does deposit repricing help support Bank of Communications’ net interest margin to stabilize and improve?

Cailian Press, March 27 (Reporter Guo Zishu) On March 27, 2026, Bank of Communications (SH:601328; HK:3328) released its 2025 annual results.

As of the end of 2025, the group’s total assets exceeded RMB 15.5 trillion, up 4.35% from the end of the previous year. Full-year net profit attributable to shareholders of the parent company was RMB 155k, up 2.18% year-on-year. Operating income was RMB 95.62B, up 2.02% year-on-year. The non-performing loan ratio was 1.28%, down 0.03 percentage points from the end of the previous year, and the allowance coverage ratio increased to 208.38%.

According to the profit distribution plan released by Bank of Communications, the board of directors proposed using the total share capital of 88,363,784,223 shares as of the end of 2025 as the base to distribute a final cash dividend to A-share and H-share shareholders of RMB 1.684 per 10 shares (including tax), for a total distribution amount of approximately RMB 14.88 billion.

Net interest margin is expected to stabilize and improve Deposit repricing supports lower funding costs

At the 2025 annual results briefing, Zhou Wanfu, Executive Director and Vice President of Bank of Communications, elaborated on the trend of the interest margin. He said that since the third quarter of last year, the bank’s net interest margin has basically remained stable. This year, the amount of deposits maturing increased compared with last year, with a larger proportion concentrated in the first quarter. Over the past two years, after large amounts of time deposits matured and were repriced, the interest cost on deposits will decline significantly.

Looking ahead to the full year, it is expected that the net interest margin will maintain a trend of stabilizing and improving. On the one hand, the support comes from deposit repricing; on the other hand, the constraints from the pricing self-discipline mechanism have become noticeably stronger. In the next stage, Bank of Communications will focus on: first, strictly carrying out the volume-and-price review and management of deposits and loans, and reinforcing the responsibilities of each business line and operating unit in promoting balanced development of volume and price; second, implementing deposit and loan pricing management in a more refined manner and strictly complying with the pricing self-discipline mechanism; third, dynamically optimizing and adjusting the asset-liability structure.

Retail AUM nearly RMB 6 trillion Private banking client numbers grow in double digits

In 2025, Bank of Communications rolled out a series of strategic plans in wealth management. In December last year, at the headquarters level, Bank of Communications integrated and established a Wealth Management Department. Recently, the bank plans to apply to revoke its private banking dedicated institution license, promoting reform of the institutional and mechanisms in the retail segment, so as to strengthen the distinctive features of wealth finance and further enhance its customer service capabilities.

In terms of wealth management, as of the end of 2025, Bank of Communications’ retail AUM was RMB 5.98 trillion, up 8.91% from the end of the previous year. For the agency business, the balance of agency personal wealth management products was RMB 1.02 trillion; the balance of agency personal public mutual funds reached RMB 230.0 billion; and the balance of agency personal insurance products was RMB 374.0 billion. The number of private banking clients in the group was 105.1k, up 11.62% year-on-year; the scale of assets under private banking management was RMB 1.43 trillion, up 10.39% from the end of the previous year.

“Since March, the submission volume for mortgage loans has risen markedly”

Regarding this year’s credit deployment rhythm, Zhou Wanfu said the full-year loan deployment growth would be no less than last year. In terms of timing, the bank will balance making efforts somewhat earlier with achieving steady and sustainable growth. Under this plan, approximately 40% would be allocated in the first quarter, and a bit more than 60% by the first half.

“Since entering March, the submission volume for mortgage loans has risen markedly. Whether compared with the first two quarters of last year or with the third and fourth quarters of last year, it should also be growth of around 15%, which should be a signal that the real estate market is stabilizing. We believe that if this continues, our residential mortgage loans this year will gradually come out of negative growth and gradually realize positive growth, thereby driving retail loan growth toward the expected target.” Zhou Wanfu said.

When discussing corporate loans, Yin Jiuyong, Vice President of Bank of Communications, said that last year Bank of Communications’ RMB corporate loan incremental amount was RMB 265.07B, with an increase of 10.1%. Bank of Communications plans to make corporate loans achieve more year-on-year growth compared with 2025.

(Cailian Press reporter Guo Zishu)