China Merchants Bank Sees Persistent Margin Pressure, H1 Net Interest Margin at 1.83%
China Merchants Bank reported a first-half net interest margin of 1.83%, down 5 basis points year on year, as interest income fell 2.42% to RMB 172.73 billion. Net interest income rose 5.6% to RMB 112.02 billion. The bank said deposit repricing is largely complete and aims to stabilize margins in 2026.
On August 31, China Merchants Bank held its 2026 interim results conference and disclosed its operating data for the first half of the year. During the reporting period, the bank recorded interest income of RMB 172.73 billion, down 2.42% year on year, of which loan interest income was RMB 111.947 billion, down 5.99%. As of the end of June 2026, the bank's net interest income stood at RMB 112.02 billion, up 5.6% year on year.
In terms of interest margins, for the first half of 2026, China Merchants Bank's net interest spread was 1.77% and its net interest margin was 1.83%, down 0.02 and 0.05 percentage points year on year, respectively. Compared with the end of 2025, the net interest spread fell 0.01 percentage point and the net interest margin fell 0.04 percentage point, with the decline narrowing. In the second quarter, the net interest margin was 1.82%, down 1 basis point from the first quarter.
At the conference, China Merchants Bank stated that deposit repricing has been largely completed. Going forward, it will strengthen overall asset-liability portfolio management, macro asset allocation, and asset structure arrangements, striving to achieve stable interest margins in 2026.