At the 2026 interim results conference held on August 28, Bank of China Deputy Governor Liu Chenggang addressed the bank's net interest margin (NIM) performance, noting that while RMB market interest rates currently operate at a reasonably low level, major foreign currency rates remain relatively elevated. Given this environment, the bank's globally diversified asset allocation and multi-currency business structure have become distinct advantages, with the NIM stabilizing continuously since the second quarter of 2025 and rebounding by 1 basis point to 1.27% in the first half of 2026.
Speaking on the short-term outlook, Liu stated: "The negative impact from the repricing of existing loans tied to the LPR has largely been released, while long-term RMB time deposits are also maturing in a concentrated manner and undergoing repricing." He further highlighted that the incremental contribution from foreign currency interest margins will persist, as the bank's foreign currency assets constitute a relatively high proportion of its portfolio, with interest rate spreads on major foreign currencies exceeding those of RMB, and foreign currency bond investments remain diversified with overall duration controlled within a reasonable range.
Despite the rapidly changing external landscape, particularly the considerable uncertainty surrounding the future trajectory of US dollar interest rates, Liu expressed confidence that through active adjustments to the balance sheet, the bank can continue to expand foreign currency interest spreads and enhance the overall resilience of the group's net interest margin performance.
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