Recently, the China Financial Supervision and Administration announced the data on the main regulatory indicators for the banking and insurance industry for the second quarter of 2026. According to the data, the net interest spread of commercial banks in the second quarter of this year was 1.41%, up 0.01% from the first quarter. It is worth mentioning that this is the first time since the first quarter of 2022 that commercial banks have achieved a steady recovery in net interest spreads. The reporter learned that net interest spreads are a key indicator for measuring the profitability of a bank's main business. The increase in net interest spreads means an increase in banks' profitability and is a sign of an improvement in the bank's core business conditions. Dong Ximiao, chief economist of CMB, said in an interview with reporters that commercial banks' net interest spreads rose slightly by 0.01 percentage points month-on-month in the second quarter. Although they stopped falling and rebounded from the historical low of 1.40% in the first quarter, they were still down 0.01 percentage points compared to the end of 2025. “This change is slightly better than the market's previous expectations of a slight decline in net interest spreads from month to month, or it means that the net interest spreads have continued to decline unilaterally since 2022 and has bottomed out.” Dong Ximiao said.

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