Industrial Bank's Lin Shu: Net Interest Margin Holds at 1.60%, Matching First-Half Level as Overall Interest-Bearing Liability Payout Ratio Improves Each Quarter

On October 30, Industrial Bank Co., Ltd. (601166) held its third-quarter 2026 earnings briefing, where Lin Shu, general manager of the planning and finance department, stated that the group's net interest margin for the first three quarters stood at 1.60%, unchanged from the first half of the year.

On a year-over-year basis, the net interest margin declined by 12 basis points, with the pace of decline narrowing by 3 basis points compared to the first half.

Looking at both sides of the balance sheet, on the asset side, the bank's average loan yield came in at 3.29%, down 35 basis points year-over-year, with the decline narrowing by 6 basis points from the first half.

On the liability side, the bank's customer deposit interest expense ratio was 1.40%, down 31 basis points year-over-year, maintaining a favorable downward trajectory.

In addition, the overall payout ratio on interest-bearing liabilities improved quarter by quarter, with costs steadily being brought down.