On April 2nd, Bank of Qingdao Co.,Ltd. held its 2025 annual performance briefing. Regarding questions about the net interest margin, Li Zhenguo, General Manager of the Planning and Finance Department, stated that while the banking industry has generally faced pressure from narrowing interest margins in recent years, the bank has actively responded with various measures. Li Zhenguo noted that against the backdrop of an overall decline in market interest rates and efforts to benefit the real economy, margin compression is a common challenge currently faced by the banking sector.

Li Zhenguo further elaborated that Bank of Qingdao Co.,Ltd. is implementing measures to stabilize its net interest margin primarily through the following aspects: First, in resource allocation, the bank is implementing its institution-wide high-quality development strategy, prioritizing the weighting of performance indicators such as revenue, and strengthening assessments of indicators like the spread between deposits and loans and the return on economic capital. Second, in asset management, the bank emphasizes structural optimization by increasing the proportion of high-yield assets within its interest-earning assets, boosting loan disbursements, and promoting an increase in investment scale. It is also optimizing the structure of major liabilities, actively expanding deposit sources, encouraging the marketing of low-cost current deposits, and increasing the utilization of funds such as relending facilities. Concurrently, the bank is taking multiple steps to reduce deposit costs, actively adjusting pricing strategies, strengthening market-based adjustments to deposit rates, and effectively managing its liability cost ratio.

Regarding the future trajectory of the net interest margin and the factors influencing it, Li Zhenguo indicated that, from an external environmental perspective, there remains some uncertainty. Weak loan demand and intensified industry competition continue to contribute to declining loan rates and low, fluctuating bond yields. The return on assets is expected to continue declining, and banks will still face pressure from narrowing net interest margins. However, judging from the overall trend in the commercial banking market, signs of stabilization in the industry's net interest margin are beginning to appear. Li Zhenguo emphasized that going forward, Bank of Qingdao Co.,Ltd. will adhere to meticulous management of its net interest margin and is committed to maintaining a performance that continues to outperform its peers.