China's largest state banks expect to improve from record-low profit margins following the repricing of about $7.8 trillion of maturing high-priced time deposits, Reuters reported Tuesday.

The rollover of maturing three-year deposits at current rates could bring down costs by about 135 basis points compared with 2023, the report said, citing China Galaxy Securities (HKG:6881, SHA:601881) analyst Zhang Yiwei.

Industrial and Commercial Bank of China (HKG:1398, SHA:601398) forecasts a 2% decrease in 2025 profit, while China Construction Bank (HKG:0939, SHA:601939) expects profit to slip 0.4%, the report said, citing LSEG data.

Agricultural Bank of China's (HKG:1288, SHA:601288) profit is seen to grow 2.3%, albeit slower than 2024, Reuters said.

Bank of China (HKG:3988, SHA:601988) and Bank of Communications (HKG:3328, SHA:601328) could see growth below 1%, the report said.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)