During its 2026 interim results conference call on August 31, China Merchants Bank Co.,Ltd. Vice President and Board Secretary Peng Jiawen noted that while the industry's net interest margin is broadly stabilizing this year, the trend is uneven, with some banks seeing a rebound and others still facing declines.

"At China Merchants Bank, we are currently in the declining camp, but the pace of the decline is narrowing rapidly," Peng said. He detailed that the bank's first-half margin stood at 1.83%, down 5 basis points year-on-year. On a sequential basis, the second quarter margin fell just 1 basis point quarter-on-quarter, suggesting the downward trajectory is clearly decelerating and even stabilizing.

Peng attributed the margin pressure primarily to the asset side, citing three key factors: the lingering impact of repricing, falling asset yields due to weak credit demand, and a bank-specific structural issue. "Our retail credit portfolio, especially credit cards, historically has a high proportion. But in the current environment, growth in higher-yielding assets has slowed, and this mix shift is also pressuring the margin," he explained.

Despite the improving trend, Peng cautioned that it remains too early to declare a rebound in industry margins. "The market pressure from declining rates will persist for some time," he said. However, he offered a more optimistic outlook: "My personal judgment is that although margins still face downward pressure, the most difficult period has likely passed, and they will gradually move toward stabilization."