On August 28, at the bank's 2026 semi-annual results conference, Lin Shu, General Manager of the Planning and Finance Department at Industrial Bank Co., Ltd., revealed that the institution has RMB 540 billion in time deposits with maturities exceeding three years coming due this year. Of this amount, approximately RMB 310 billion had already matured in the first half of the year, leaving RMB 230 billion scheduled for the second half, according to a report from Financial Frontline.
Lin noted that the bank is well-positioned to take advantage of favorable conditions for replacing these long-term deposits. "The average cost of this portion of deposits is around 3.15%. Assuming we replace them with the current three-year time deposit rate of 1.75%, we could achieve a cost saving of roughly 140 basis points on these liabilities," he explained.
Lin further added that if a portion of these funds were to be converted into lower-cost demand deposits, the potential for cost reduction would be even more substantial. The strategic shift underscores the bank's focus on optimizing its liability structure amid evolving interest rate dynamics.
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