On October 31, Minsheng Bank held its Q3 2025 earnings briefing.
Regarding net interest margin (NIM), management noted a significant quarter-on-quarter increase in Q3. This improvement was influenced by declining market interest rates and ample liquidity, but primarily driven by structural business enhancements and refined management practices. Overall, Minsheng Bank's NIM has demonstrated a steady upward trend this year.
Looking ahead, management expects the current loose monetary environment to persist, with interest rates continuing a downward trajectory, which will support NIM by reducing liability-side costs. Meanwhile, under anti-internal competition policies, banks are enhancing pricing capabilities, potentially stabilizing asset-side yields. However, uncertainties remain—such as uneven demand recovery and fluctuations in off-balance-sheet assets like deposits and wealth management funds—posing challenges to balancing volume and pricing in asset-liability management.
To sustain NIM stability, Minsheng Bank will focus on expanding its core customer base, foundational businesses, products, and services. Key strategies include: 1. **Boosting Settlement Deposits**: Strengthening payment scenarios, optimizing fund flow management, and improving client stickiness to lower deposit costs. 2. **Optimizing Loan Allocation**: Refining customer segmentation by credit ratings, industries, and regions to enhance differentiated services and diversify asset portfolios. 3. **Strengthening Pricing Discipline**: Aligning with regulatory requirements to refine risk-based and capital-based pricing mechanisms, stabilizing asset-side returns.
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