On October 30, China Construction Bank Corporation (CCB) held its Q3 2025 earnings briefing. Regarding net interest margin (NIM), Chief Financial Officer Sheng Liurong analyzed the positive factors: "On the asset side, the combined effects of the 2024 LPR cuts and the May interest rate reduction this year, along with low open market rates, led to a 47-basis-point year-on-year decline in the yield on interest-earning assets. On the liability side, we actively strengthened balance sheet management, tightened control over long-term, high-interest fixed deposits, and achieved solid results—the deposit interest rate fell 34 bps YoY in the first three quarters. Beyond deposits, proactive liability management reduced the interest rate on all interest-bearing liabilities by 37 bps YoY. Structurally, we optimized asset allocation by reducing low-yield interbank assets and increasing higher-yielding loans and financial investments, which supported NIM."

Looking ahead, Sheng noted that the central bank continues to refine its monetary policy framework, improve interest rate transmission, and mitigate NIM shocks by emphasizing symmetrical adjustments for assets and liabilities while expanding structural policy tools. Meanwhile, regulators are strengthening oversight of bank pricing practices to curb irrational competition, fostering a stable environment for NIM.

Sheng added that while loan repricing outpaces deposits—posing lingering pressure from LPR and deposit rate cuts—the impact of lower deposit rates on funding costs is gradually materializing. Client deposit rates fell 34 bps YoY in Q1-Q3, 30 bps more than the prior-year decline, aiding NIM stabilization. CCB will further enhance operational efficiency and pricing strategies to maintain a reasonable NIM level.

"Overall, we expect the NIM decline to narrow progressively. Through proactive management, we are confident in sustaining a leading NIM among peers," Sheng concluded.