The six major state-owned banks saw a rebound in intermediary business income in the second half of last year.

Our Reporter, Peng Yan

According to the 2025 annual reports disclosed by the six state-owned banks, their intermediary business income (net fee and commission income) has all recorded year-on-year growth, showing a clear recovery trend.

Interviewed experts said that intermediary business income has the characteristics of being light on capital and resilient to the business cycle. It is a key lever for banks to shift from “scale expansion” to “value growth.” Against the backdrop of net interest margins remaining at historically low levels, intermediary business income among the six state-owned banks has all increased year on year. This not only strengthens their own earnings resilience, but also helps the banking industry optimize its revenue mix and achieve high-quality development. Looking ahead, as the ongoing deepening of fintech empowerment and the continuous improvement of comprehensive financial service capabilities progress, intermediary business is expected to become a “second growth curve” for revenue growth at China’s large state-owned banks.

Intermediary business income grows across the board

Intermediary business income has become an important engine for performance growth among China’s large state-owned banks. Judging by the contribution segments, wealth management businesses (including wealth management products, fund distribution, etc.) are the core segment. Investment banking businesses, especially bond underwriting, have also become an important source of growth. In addition, the agency business for precious metal sales can generate a marked boost to revenue in certain market environments.

Specifically, Agricultural Bank of China and Postal Savings Bank of China are leading with growth rates of over 16%. In 2025, Agricultural Bank of China generated net fee and commission income of RMB 88.09B, up 16.6% year on year. Among this, commission income from agency businesses grew 87.8%, mainly driven by the bank’s efforts to deepen the transformation of its wealth management business, with increases in wealth management and fund distribution income. Postal Savings Bank of China recorded fee and commission net income of RMB 29.36B in 2025, up 16.15% year on year. Of this, fee income from wealth management business was RMB 5.37B, up 35.99% year on year. Fee income from investment banking business was RMB 4.6B, up 38.52% year on year. This was mainly supported by its “commercial bank + investment bank” integrated operating model, under which income from syndicated loans, financial advisory and other businesses grew rapidly.

In addition, related income at Industrial and Commercial Bank of China and Bank of Communications saw a mild rebound, while China Construction Bank and Bank of China maintained steady growth. In 2025, Bank of Communications generated fee and commission net income of RMB 38.18B, up 3.44% year on year. Its push in wealth management business drove a steady increase in wealth management and fund distribution income. In 2025, Industrial and Commercial Bank of China generated fee and commission net income of RMB 111.17B, up 1.6% year on year, mainly due to increases in fee and commission income from related businesses such as agency precious metals, funds, wealth management, and securities.

In 2025, China Construction Bank’s fee and commission net income was RMB 110.31B, up 5.13% year on year. Of this, asset management business income was RMB 15.34B, up 78.78% year on year, mainly driven by growth in wealth management product income and fund management fee income. Fee income from agency businesses was RMB 15.3B, up 6.19% year on year, mainly driven by growth in income from fund distribution, bond underwriting, and other sources. In 2025, Bank of China’s fee and commission net income was RMB 82.24B, up 7.37% year on year.

Growth momentum will continue to be released

Regarding the core driving factors behind the recovery in intermediary business income of the six state-owned banks, Xue Hongyan, Special Researcher at Sushang Bank, told reporters of The Securities Daily that first, capital markets continued to improve in 2025, and wealth management business benefited from the recovery, becoming an important engine for growth in intermediary business income. Second, the impact of earlier policies to cut fees and pass benefits to customers gradually stabilized, creating room for restorative growth in intermediary business. Finally, the state-owned large banks continued to step up efforts in their traditional areas of strength, with businesses such as bills and custody forming new momentum. In addition, the ongoing deep advancement of digital transformation, together with macro policy support, jointly promotes the restoration of intermediary business.

Yang Haiping, a researcher at the Shanghai Institute of Finance and Law, told reporters of The Securities Daily that against the backdrop of ongoing pressure on net interest margins, commercial banks generally treat expanding non-interest income as a strategic priority and tilt resources and performance evaluations toward it, forming systemic support, particularly by pushing rapid growth in wealth management business.

Xue Hongyan further analyzed that amid an industry environment where net interest margins continue to narrow, the supporting role of intermediary business income for bank profitability has become increasingly prominent. It has shifted from supplementary income to an important pillar of the revenue structure. In the long run, with the characteristics of being light on capital and highly sticky, intermediary business will continue to intensify efforts in areas such as wealth management, investment banking, and settlement and custody, thereby推动 banks to move toward a refined operating model that is customer-centered, technology-driven, and diversified in business. He believes that the core focus of competition in the banking industry in the future will concentrate on wealth management capabilities, the depth of digital transformation, and clients’ comprehensive service capabilities, and that the proportion of intermediary business income will become a key indicator for measuring the effectiveness of bank transformation.

Looking ahead to 2026, Xue Hongyan said that macroeconomic policy will continue to be strengthened, with fiscal and monetary policies working in tandem to support the real economy. At the same time, residents’ wealth allocation will accelerate their shift toward non-deposit financial assets, providing sustained momentum for growth in wealth management business. Banks themselves have also generally implemented plans to increase intermediary business income, focusing on developing light-capital, high-stickiness businesses. Against this backdrop, intermediary business income at the six state-owned banks is expected to maintain a growth trend.

(Editor: Qian Xiaorui)

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