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Tencent News "First Line"

Author: Zhu Yuting Editor: Liu Peng

On August 20,Shanghai Pudong Development BankAt the 2024 mid-year performance briefing, Zhang Jian, general manager of the Asset, Liability and Financial Management Department of Pufa Bank's head office, talked about the net interest margin issue and said that although Pufa Bank's net interest margin pressure has eased in the first half of the year, the entire industry will still face downward pressure in the future.

Zhang Jian believes that at present, the trend of regularization and long-termization of the entire deposit side is still continuing, and the rigid decline in interest payment rates will also be affected.

"According to our static estimates, we expect the interest rate spread to bottom out in 2025," he said.

In the first half of the year, Pufa Bank's net interest margin stabilized, and the parent company's net interest margin increased by two basis points compared with the first quarter.

According to Zhang Jian, Pufa Bank increased its credit supply in the first half of the year. The net increase in the group's credit in the reporting period hit a record high for the same period, reaching 297.2 billion yuan, an increase of 5.92%.

On the other hand, "strictly controlling interest payment costs" is a business focus of Shanghai Pudong Development Bank this year. "We not only pursue the growth of deposit scale, but also strictly control our interest payment costs." Zhang Jian said that in the first half of the year, Shanghai Pudong Development Bank's other non-interest income (excluding handling fees) increased by 6.41%; the group's business and management fees decreased by 3.22% year-on-year during the reporting period.

"We will reduce our positions when the time is right and continue to adjust our positions in financial market transactions. We have also established a trading incentive mechanism that has obvious advantages over other banks to mobilize enthusiasm and seize market opportunities."

Data shows that in the first half of 2024, Pufa Bank achieved operating income of 88.248 billion yuan, a year-on-year decrease of 3.27%; net profit was 26.988 billion yuan, a year-on-year increase of 16.64%.