Recently, the State Administration of Financial Supervision and Administration released the data on the main regulatory indicators of the banking industry for the third quarter of 2025. Overall, the total assets of China's banking industry have maintained growth. As of the end of the third quarter, the total assets of China's banking and financial institutions were 474.31 trillion yuan, a year-on-year increase of 7.9%, which is the same as the end of the second quarter. Among them, the total assets of commercial banks were 409.63 trillion yuan, a year-on-year increase of 8.8%. From the perspective of asset concentration, asset size shows a trend of concentration towards large commercial banks. From the perspective of different types of commercial banks, public data shows that as of the end of the third quarter, the total assets of large commercial banks accounted for 43.9% of the financial institutions in the banking industry, an increase of 0.2 percentage points compared to the end of the second quarter and an increase of 0.6 percentage points compared to the end of the first quarter; The total assets of joint-stock commercial banks accounted for 16.1% of the financial institutions in the banking industry, a decrease of 0.1 percentage points from the end of the second quarter; The total assets of city commercial banks accounted for 13.8% of the financial institutions in the banking industry, unchanged from the end of the second quarter. In addition, the total assets of rural financial institutions and other types of financial institutions accounted for 12.9% and 13.4% of the total assets of banking financial institutions, respectively, which remained the same as the end of the second quarter but decreased by 0.1 percentage points. Overall, large commercial banks continue to play a leading role and serve as a ballast. Differentiated development of the banking industry helps to better serve the real economy and meet the reasonable financial service needs of various entities. ”Lou Feipeng, a researcher at China Postal Savings Bank, said. The banking industry continues to serve the real economy. As of the end of the third quarter, the balance of inclusive small and micro enterprise loans from banking and financial institutions was 36.5 trillion yuan, a year-on-year increase of 12.1%. The balance of inclusive agricultural loans was 14.1 trillion yuan, an increase of 1.2 trillion yuan from the beginning of the year. From the perspective of profitability indicators, commercial banks achieved a net profit of 1.87 trillion yuan in the first three quarters of this year, which is the same as the same period in 2024. As of the end of the third quarter, the asset profit margin of commercial banks was 0.63%, which was the same as the end of the second quarter, and the overall situation remained under pressure; The net interest margin was 1.42%, unchanged from the end of the second quarter. As of the end of the third quarter, the net interest margins of large commercial banks, city commercial banks, rural commercial banks, and foreign banks were 1.31%, 1.37%, 1.58%, and 1.35%, respectively, all of which remained unchanged from the end of the second quarter; The net interest margin of joint-stock commercial banks rebounded first, rising by 1 basis point to 1.56% from the end of the second quarter; The net interest margin of private banks continued to significantly decline, dropping by 8 basis points from the end of the second quarter to 3.83%. Zeng Gang, director of the Shanghai Finance and Development Laboratory, stated that the net interest margin of commercial banks is expected to remain under pressure in the coming quarters. In the long run, the narrowing of interest rate spreads is an inevitable result of interest rate liberalization and a universal law of the development of the international banking industry. Commercial banks need to optimize asset allocation, increase the proportion of intermediary and light capital businesses, and cultivate diversified sources of income; The second is to strengthen refined management, improve operational efficiency through digital means, and reduce the cost to income ratio; The third is to accelerate strategic transformation, shifting from scale expansion to value creation. In the long run, the net interest margin will tend to stabilize at a relatively low level, testing the refined operation and comprehensive service capabilities of commercial banks. The overall quality of credit assets of commercial banks is stable, and their risk offsetting ability is sufficient. As of the end of the third quarter, the non-performing loan ratio of commercial banks was 1.52%, an increase of 3 basis points from the end of the second quarter; The balance of loan loss provision is 7.3 trillion yuan, an increase of 17.4 billion yuan from the end of the second quarter; The provision coverage ratio is 207.15%, and the loan provision ratio is 3.14%. Zeng Gang told reporters that the overall operation of China's banking industry was stable in the first three quarters of this year, with continuous expansion of asset size and stable profitability. The financial system has strong operational resilience, with sufficient credit support for the real economy and overall controllable risks. Despite the complex macro environment and increasingly strict financial regulation, the banking industry has demonstrated good profitability stability and asset quality foundation, providing strong support for stable growth and risk prevention in the future. In terms of non-performing loan ratios, the non-performing loan ratios of large commercial banks, joint-stock commercial banks, city commercial banks, private banks, rural commercial banks, and foreign banks are 1.22%, 1.22%, 1.84%, 1.83%, 2.82%, and 1.06%, respectively. Among them, the non-performing loan ratio of joint-stock commercial banks remained the same as at the end of the second quarter, the non-performing loan ratio of foreign banks decreased compared to the end of the second quarter, and the non-performing loan ratio of other types of banks increased to varying degrees compared to the end of the second quarter. (New Society)