Today, ＂cut interest rates＂! ICBC, Agricultural Bank of China, China Construction Bank, Bank of China, Bank of Communications, China Merchants Bank, intensive shots.
During the year, the third round of deposit listing interest rate reduction officially landed.
After ICBC took the lead in announcing the reduction of RMB savings deposit interest rate, Agricultural Bank, China Construction Bank, Bank of China, Bank of Communications and China Merchants Bank also announced the latest RMB savings deposit interest rate.
This concentrated "interest rate cut" is a three-month reduction after the national commercial banks lowered the deposit listing interest rate in early September this year. Compared with the reduction in September, this round of deposit interest rate reduction is close. This round of adjustment is also the third round of "interest rate reduction" in the banking industry in 2023 and the fourth round since September 2022.
The deposits of the five major state-owned banks and China Merchants Bank "cut interest rates"
Generally speaking, the reduction rates of major banks are consistent, involving the interest rates of time deposits and certificates of deposit with different maturities, with the reduction rates generally being 10bp (basis point), 20bp, 25bp and 30bp, and the deposit term covers one year to five years.
On the afternoon of December 21st, ICBC APP suddenly hung up the Notes on Adjusting the Interest Rate of RMB Savings Deposits, indicating that the deposit listing interest rate will be lowered from December 22nd, 2023, mainly involving three months, six months, one year, two years, three years, five years time deposits and large deposit certificates.
On December 22nd, Agricultural Bank, China Construction Bank, Bank of China and Bank of Communications also announced the latest RMB savings deposit rates.
agricultural bank
China Construction Bank
Bank of China
Bank of Communications
As of press time, among the six major state-owned banks, the Postal Savings Bank has not released the relevant announcement on the adjustment of RMB deposit interest rate.
In addition, among the stock banks, China Merchants Bank took the lead. On December 22nd, China Merchants Bank’s one-year, two-year, three-year and five-year lump-sum time deposits were listed at interest rates of 1.45%, 1.65%, 1.95% and 2%. Before that, it was 1.55%, 1.85%, 2.2% and 2.25% respectively. Like the big banks, the one-year period is lowered by 10bp, and the two-,three-and five-year periods are lowered by 20bp, 25bp and 25bp respectively.
Bank spreads continue to be under pressure.
The national banks lowered the deposit listing interest rate again, which is a market-oriented adjustment according to their own business needs under the background of narrowing net interest margin.
At the previous interim results conferences of several listed banks, many bank executives predicted that there would still be narrowing pressure on the net interest margin in the second half of the year. In this context, the above statement is regarded by the market as a signal that banks will cut the deposit interest rate again.
According to the data of the General Administration of Financial Supervision, the net interest margin of commercial banks in the first three quarters was 1.73%, down by 0.01 percentage point from the previous month, hitting a record low.
On November 27th, the People’s Bank of China issued the Report on the Implementation of Monetary Policy in China in the Third Quarter of 2023, which showed that the reform efficiency of the loan market quotation rate (LPR) and the market-oriented adjustment mechanism of deposit interest rate should be continuously brought into play, so as to reduce the loan interest rate of enterprises and stabilize the debt cost of banks.
According to the latest research report of Minsheng Securities, it is estimated that the net interest margin will be lowered or boosted by 3bp this time, boosting the revenue growth rate by 1.2 percentage points. The research report believes that this downgrade was conducted before the "good start", and the impact on the bank’s debt cost management in 2024 (especially in the first half of the year) may be more significant. At the same time, this move opens up the space for LPR to cut interest rates in the first half of 2024. Symmetrical interest rate cuts have little impact on the net interest margin, and it is expected to boost economic expectations and help the bank’s valuation repair.
Editor: Wang Lulu
Proofreading: Gao Yuan