Big Six Banks See Time Deposits Rise Over RMB6 trillion in H1

In September 2026, deposit rates continued to decline, with three-year fixed deposit rates down 125 basis points from three years ago. A joint-stock bank's mobile banking app showed three-year fixed deposit rates up to 1.6% and five-year rates from RMB10,000 up to 1.8%, compared with 2.85% and 3.15% respectively three years earlier. The largest state-owned banks offered maximum three-year and five-year fixed deposit rates of just 1.55%.

According to interim reports from listed banks, deposit appeal remained strong and the trend toward time deposits continued. At 42 A-share listed banks, corporate and personal time deposit balances rose by nearly RMB7.9 trillion in the first six months, with personal time deposits up about RMB4.78 trillion. Central bank data showed RMB deposits reached RMB346.44 trillion at end-June 2026, up 8.2% year on year. In the first half, RMB deposits increased by RMB17.76 trillion, with household deposits up RMB7.58 trillion, RMB3.19 trillion less than a year earlier, and non-financial corporate deposits up RMB3.2 trillion, RMB1.43 trillion more.

The six largest banks remained the main deposit takers. At end-June 2026, their total deposits stood at about RMB157.58 trillion, up RMB6.74 trillion from end-2025 but RMB1.42 trillion less year on year. Corporate and personal time deposits together rose RMB6.04 trillion, RMB480.8 billion less year on year, but accounted for nearly 90% of the deposit increase, about 10 percentage points more than in the same period of 2025. Personal time deposits rose RMB3.76 trillion and corporate time deposits RMB2.27 trillion, with the former significantly lower and the latter significantly higher year on year. ICBC, China Construction Bank and Agricultural Bank of China each saw time deposit balances rise by more than RMB1 trillion, while Postal Savings Bank, Bank of Communications and Bank of China increased by about RMB916.8 billion, RMB513.9 billion and RMB287 billion respectively.

Agricultural Bank of China recorded the largest increase in personal time deposits, up RMB942.2 billion from the start of the year, followed by CCB, ICBC and Postal Savings Bank at about RMB895 billion, RMB736 billion and RMB614.8 billion respectively, though all saw year-on-year declines. In corporate deposits, ICBC had the largest increase in time deposits, up about RMB995.9 billion from end-2025, more than RMB385 billion higher year on year. CCB and Postal Savings Bank each saw corporate time deposits rise by more than RMB500 billion and RMB300 billion respectively, while Bank of China's corporate time deposits fell about RMB56.3 billion. Nine listed joint-stock banks saw corporate and personal time deposits rise about RMB803.7 billion in the first half, with corporate time deposits accounting for the bulk at RMB507.2 billion and personal time deposits up about RMB296.5 billion. Twenty-seven listed regional banks saw time deposit balances rise about RMB1.05 trillion, with personal and corporate time deposits up RMB721 billion and RMB329.3 billion respectively, down RMB48.3 billion and RMB139.1 billion year on year.

Deposit structure directly affects funding costs. Bank of Communications Vice President Zhou Wanfu said at an earnings call that the bank's lower-cost corporate deposits rose about RMB382.5 billion year on year, up 7.53%, and demand deposits increased year on year, accounting for 70% of the overall year-on-year increase in deposits, together driving down deposit costs. Given different backgrounds and positioning, deposit costs vary. In terms of average interest rates on time deposits, ICBC, CCB and Bank of Communications paid less on corporate time deposits than on personal time deposits, while Agricultural Bank of China, Bank of China and Postal Savings Bank had lower average costs on personal time deposits. In the first half of 2026, Agricultural Bank of China saw the largest decline in average corporate time deposit costs, down 49 basis points year on year, while Bank of Communications saw the largest decline in average personal time deposit costs, also down 49 basis points.

According to CICC estimates, about RMB75 trillion of household time deposits mature in 2026, including about RMB67 trillion of deposits with maturities of one year or more. The scale of maturing household deposits and time deposits of one year or more in 2026 is set to grow 12% and 17% respectively from 2025, an increase of RMB8 trillion and RMB10 trillion year on year. In the first quarter, RMB29 trillion of household time deposits of one year or more matured, about RMB4 trillion more than in the same period of 2025. Several banks said at earnings calls that the large scale and concentrated repricing of maturing time deposits, especially three-year ones, were key supports for the stabilization and recovery of net interest margins in the first half. Bank of Communications said its 2026 time deposit repricing volume was larger than in 2025, with more than 60% in the first half and over 30% in the second half. China CITIC Bank Vice President Zhao Yuanxin said the decline in liability-side costs since 2026 was mainly driven by the concentrated maturity of high-cost three-year deposits.

In terms of interest expense on deposits, lower prices offset higher volumes, leading to double-digit declines in deposit interest expenses at the major banks in the first half. ICBC's deposit interest expense was RMB208.994 billion, down 15.6% year on year; Agricultural Bank of China RMB184.18 billion, down 13.8%; Bank of China RMB180.75 billion, down 14.15%; CCB RMB170.074 billion, down 15.44%; Bank of Communications RMB69.602 billion, down 14.24%; and Postal Savings Bank RMB82.665 billion, down 13.76%.

The market is closely watching the flow of funds after deposit maturity and pressure on the major banks' liabilities, especially given the seesaw effect between household deposits and non-bank deposits, which has strengthened the narrative of deposit outflows. However, several bank executives said at earnings calls that retention rates for maturing deposits were high, mostly above 90%. Zhou Wanfu of Bank of Communications said that despite deposit rates falling to historic lows, the renewal rate was above 90%, and time deposit customers tended to be risk-averse, with most still feeling most comfortable keeping money in the bank. CCB Vice President Tang Shuo said the bank's overall retention rate for maturing personal time deposits in the first half remained above 90%. China CITIC Bank Vice President Xie Zhibin said the renewal rate and AUM retention rate for three-year time deposits in the first half were broadly in line with 2025, with no new trend emerging.

Household wealth allocation is undergoing notable structural changes. On one hand, the shift of household wealth from real estate and other assets into financial assets continues. On the other, as capital market volatility increases, client risk appetite is showing a K-shaped divergence. Looking ahead to the second half, the cost-reduction effect from concentrated time deposit maturities is set to weaken, and net interest margins still face downward pressure. To retain maturing deposits while continuing to lower liability costs, banks are mainly focusing on expanding low-cost settlement funds, improving product handovers between deposits and wealth management, and strengthening differentiated pricing management.