Multiple banks' annual reports send positive signals, and the fundamentals of the banking sector are expected to improve. Buying on dips may be a good opportunity!

GateUser-bd883c58 · 2026-04-09T00:54:49+00:00

As of now, the annual reports of A-share listed banks show a slowdown in the narrowing of net interest margins, with net interest income improving and several banks reversing the negative growth trend of the previous two years. Non-interest income supports overall revenue, and active capital markets help boost bank fee income. Amid market volatility, low-valuation positioning is seen as an opportunity.

GateUser-bd883c58

2026-04-09 00:54:49

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Ask AI: Does the narrowing and slowdown in net interest margin signal a turning point in bank industry profitability?

As of now, A-share listed banks have released their 2025 annual reports. The data show that although net interest margins are still steadily narrowing, industry insiders analyze that as the pace of net interest margin compression slows, net interest income—which is a core component of bank revenue—will improve in 2025. Several listed banks saw this indicator turn from negative to positive, helping reverse the overall revenue trend of continuous negative growth over the past two years. In a low net interest margin environment, banks’ non-interest income has played an important support role, effectively offsetting the revenue shortfall caused by declines in net interest income.

CICC believes that activity in the capital markets has contributed to banks’ fee income and the appreciation of on-balance-sheet equity assets, while the debt repayment capacity of the real economy sector still needs improvement. After capital replenishment is in place, it can support banks to achieve more stable asset growth and dividends. In a market volatility environment, stable dividends have defensive value.

Therefore, buying on dips may be an opportunity to position.

As of 14:41, the CSI Bank Index (399986) was down 1.00%. Among constituent stocks, gainers and losers were mixed: Ningbo Bank led with a rise of 0.77%, while Qilu Bank increased by 0.35%; Chongqing Bank led with a drop of 3.52%, Agricultural Bank of China fell by 2.34%, and YU-Nong Commercial Bank fell by 2.13%. The Huaxia Bank ETF (515020) was down 1.00%, with the latest quote at 1.68 yuan.

Huaxia Bank ETF (515020) is an ETF that tracks the CSI Bank Index (399986) with the lowest total fee rate. Its linked funds are Class A 008298; Class C 008299; and Class D 024642.

The Daily Economic News

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