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Fitch Bohua: Net Interest Margin Narrowing for Joint-stock Banks Expected to Continue to Slow Next Yr
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In 1-3Q25, due to the repair of household balance sheets and insufficient effective credit demand, the growth momentum of retail business for joint-stock banks cyclically weakened, posing challenges to revenue growth, Fitch Bohua released a report saying.

Against this backdrop, joint-stock banks have accelerated the adjustment of their credit structure, with significant increases in lending to high-end manufacturing, green finance and technological innovation sectors. Corporate banking has emerged as the core driver of asset scale expansion.

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Fitch Bohua expected that the narrowing of net interest margins for joint-stock banks in 2026 will continue to slow, with future operational challenges more likely to manifest in the constraints on revenue growth due to slow asset balance sheet expansion rather than a unilateral sharp contraction in interest margins.
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