Net interest margins have continued to narrow. As deposit rates keep declining, the topic of tens of trillions of yuan in fixed deposits maturing within the year has drawn ongoing market attention and discussion, with major state-owned banks being a key focus.
In response, Tang Shuo, Vice President of China Construction Bank (CCB), addressed the matter at the bank's 2025 performance briefing held on the afternoon of March 27. He stated that CCB has experienced rapid growth in savings deposits in recent years. Currently, the bank's savings deposit balance exceeds 18 trillion yuan, of which nearly 12 trillion yuan are fixed deposits. The scale of maturing fixed deposits has also increased correspondingly. So far, the overall rollover rate has been relatively favorable.
Regarding future trends, Tang indicated that during the 14th Five-Year Plan period, the allocation structure of household financial assets has undergone some changes, with funds flowing into new forms of business such as investment funds. He projected that this trend would continue into the 15th Five-Year Plan period.
In light of these developments, Tang noted that CCB has actively adapted its strategy. By the end of 2025, the bank's personal Assets Under Management (AUM) surpassed 23 trillion yuan, an increase of 2.41 trillion yuan from the end of the previous year. This growth was primarily driven by the rapid expansion of wealth management products, including funds, insurance, and precious metals. Moving forward, CCB will base its efforts on the underlying principles of wealth management, continuously enrich its product offerings, and provide differentiated rollover solutions tailored to the preferences of various customer segments.
From a profitability perspective, CCB's net interest income declined by 2.9% year-on-year in 2025, while its net non-interest income grew by 21.21%. Within the latter, net fee and commission income increased by 5.13% to 110.307 billion yuan. Specifically, asset management business revenue reached 15.341 billion yuan, a significant rise of 78.78%, mainly due to growth in wealth management product fees and fund management fees. Agency business fees amounted to 15.304 billion yuan, up 6.19% year-on-year, driven by increases in fund distribution and bond underwriting revenues.
In addressing the trend of deposit outflows and strategies for stabilizing and increasing deposits, Tang emphasized service optimization and enhanced asset allocation. This includes expanding transaction-based funds to attract high-quality deposit inflows and improving the financial management system to enhance customers' overall fund management capabilities.
According to financial reports, as of the end of 2025, CCB's total deposits exceeded 300 trillion yuan, an increase of 22.1 billion yuan from the end of the previous year, representing a growth rate of 7.39%. In terms of deposit structure, personal deposits grew rapidly last year, with their share in domestic deposits rising by 1.75 percentage points to 60.42%. At the same time, the bank's deposits showed restorative growth, with a growth rate of 3.15%, significantly higher than the rate in 2024. Overall, the bank's domestic fixed deposits and current deposits stood at 171.7 trillion yuan and 126.5 trillion yuan, respectively, with growth rates of 10.77% and 3.86%.
Deposit structure is closely linked to liability costs and net interest margin levels. Data shows that compared to 2024, CCB's net interest margin further declined by 17 basis points to 1.34% last year. The bank attributed this to multiple factors, including lower asset-side yields due to LPR reductions and low market interest rates. On the liability side, the decline in the cost of funds was smaller than the drop in asset-side yields, influenced by factors such as asymmetric interest rate cuts and the lagged adjustment of deposit rates relative to lending rates, as well as structural changes.
Focusing on deposits and loans, CCB's average cost rate for deposits absorbed last year fell by 33 basis points year-on-year to 1.32%, while the average yield on loans and advances issued decreased significantly by 59 basis points to 2.84%.