China's listed banks see interest margins fall below warning line

Earning power hit by low lending rates and credit uncertainty

20240501N Shengjing Bank

Liaoning province-based Shengjing Bank's interest margin fell to 0.96% in 2023, the lowest of any listed Chinese bank.

NORIYUKI DOI, Nikkei staff writer

SHANGHAI -- Interest margins at China's listed banks continue to shrink, with almost 70% falling below an industry warning line, as lending interest rates fall from sluggish demand and credit uncertainty boosts funding costs.

Nikkei compiled interest margins for 58 commercial banks listed in mainland China and Hong Kong that had announced financial results for the year ending December by Tuesday. Margins for 39 banks, or 67%, were below the warning line of 1.8%.

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