Chinese banks eye profit recovery from deposit repricing
Leading state lenders are set to recover from record-low margins as nearly $8 trillion in high-cost deposits mature. This repricing should stabilize margins.
Xurve View
Insights:
Xurve View
Major state-owned lenders in China are anticipated to rebound from historically low profit margins this year. This recovery is driven by the repricing of approximately $8 trillion in maturing high-interest time deposits, a move expected to significantly alleviate pressure on funding costs. While the top five state banks are projected to report lower income growth or slight profit dips for 2025 due to a property sector crisis and a cooling economy, analysts identify the repricing of these liabilities as a critical turning point.
