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Analysis: China Banks Split as Margins Squeeze and Retail Risks Rise

By Wu Xiaomeng, Fan Qianchan and Jonathan Breen
2026年04月10日 19:20
‘Big Six’ state lenders outperformed smaller peers in 2025, as weak credit demand and intensifying competition continued to weigh on loan yields

China’s major banks showed a mixed earnings performance in 2025, as persistent pressure on margins and rising retail credit risks underscored the sector’s ongoing structural challenges.

The “Big Six” state-owned banks recorded an average revenue growth rate of 2.41% last year, up 2.24 percentage points from 2024. Net profit rose 1.72% on average, up 0.08 percentage points.

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