At the 2026 interim results briefing held on September 3, Bank Of Hangzhou Co.,Ltd.'s Vice President Zhang Jianfu stated that the bank's net interest margin (NIM) showed signs of stabilization and recovery during the first half of the year, with a continued decline in liability costs playing a pivotal role. He noted that as some deposits mature and undergo repricing in the coming period, this trend is expected to remain a buffer for the NIM.

As of the end of June 2026, Hangzhou Bank's total deposits reached approximately 1.5 trillion yuan, reflecting a 4% increase from the start of the year and a 12% rise year-on-year, underlining steady overall growth. During the first half, the bank's liability funding cost rate fell to 1.49%, a decrease of 38 basis points compared to the same period last year. Meanwhile, the deposit funding cost rate dropped by 40 basis points year-on-year to 1.40%.

Zhang attributed the 10-basis-point year-on-year improvement in NIM primarily to the decline in liability costs. He highlighted that the bank intensified its efforts in asset-liability structure adjustment, liability quality management, and pricing control, all of which contributed to the sustained reduction. Additionally, the repricing of maturing deposits further influenced liability costs.

Looking ahead to the second half and beyond, Zhang emphasized that the cost repricing effect will persist as more deposits mature and are repriced, offering a degree of mitigation against the downward pressure from falling loan yields. However, he cautioned that whether the NIM can maintain its stabilization ultimately depends on the balance between stock and new business on both sides of the balance sheet, a factor that requires close monitoring.

Moving forward, Bank Of Hangzhou Co.,Ltd. will continue to focus on optimizing asset-liability structures, tightening cost controls, and enhancing pricing management to further solidify the stability of its net interest margin.