Chinese commercial banks gain margin relief, but subdued lending dims outlook

Chinese commercial banks recorded a rare, modest uptick in net interest margin (NIM) in the second quarter of 2026, marking the sector’s first quarterly expansion in the profitability indicator since 2022, even as underlying loan demand remained weak. Average NIM for commercial banks edged up 1 basis point to 1.41 per cent in the June quarter, from 1.40 per cent in the first quarter, according to the latest data released by the National Financial Regulatory Administration. Performance…