The six major state-owned banks saw a rebound in intermediary business income in the second half of last year.

Our reporter, Peng Yan

According to the 2025 annual reports disclosed by the six state-owned commercial banks, their intermediary business income (net fee and commission income) has all recorded year-over-year growth, showing a clear rebound.

Interviewed experts said that intermediary business income has the characteristics of being low-capital and resilient to the cycle. It is a key lever for banks to shift from “scale expansion” to “value growth.” Against the backdrop of net interest margins remaining at historic lows, the six state-owned commercial banks have all achieved year-over-year growth in intermediary business income. This not only strengthens their own earnings resilience, but also helps the banking industry optimize its income structure and achieve high-quality development. In the future, as financial technology continues to empower the sector and banks’ comprehensive financial service capabilities keep improving, intermediary business income is expected to become the “second growth curve” for revenue growth at major state-owned banks.

Intermediary business income sees broad-based growth

Intermediary business income has become an important engine for performance growth at state-owned commercial banks. Judging by the contribution segments, wealth management businesses (including wealth management products, and fund distribution) are the core segment. Investment banking businesses, especially bond underwriting, have also become an important source of growth. In addition, proxy precious metal sales under certain market conditions has a notable boosting effect on revenue.

More specifically, Agricultural Bank of China and Postal Savings Bank of China lead the pack with growth rates exceeding 16%. In 2025, Agricultural Bank of China recorded net fee and commission income of 88.09B yuan, up 16.6% year over year. Of this, fee income from agency business grew 87.8%, mainly driven by the bank’s deep advancement of the transformation of its wealth management business, which increased revenue from wealth management products and fund distribution. In 2025, Postal Savings Bank of China recorded fee and commission income of 29.36B yuan, up 16.15% year over year. Of this, fee income from wealth management business was 5.37B yuan, up 35.99%; fee income from investment banking business was 4.6B yuan, up 38.52%. This was mainly supported by its “commercial bank + investment bank” integrated operating model, under which revenue from syndicated loans, financial advisory and other businesses grew rapidly.

In addition, related revenue at Industrial and Commercial Bank of China and Bank of Communications rebounded moderately, while China Construction Bank and Bank of China maintained steady growth. In 2025, Bank of Communications recorded fee and commission income of 38.18B yuan, up 3.44% year over year. Wealth management business efforts drove a steady rise in income from wealth management and fund distribution. In 2025, Industrial and Commercial Bank of China recorded fee and commission income of 111.17B yuan, up 1.6% year over year. This was mainly due to an increase in revenue from agency precious metals, funds, wealth management, securities, and other related businesses.

In 2025, China Construction Bank recorded fee and commission income of 110.31B yuan, up 5.13% year over year. Of this, revenue from asset management business was 15.34B yuan, up 78.78%, mainly driven by growth in income from wealth management product and fund management fees. Fee income from agency business was 15.3B yuan, up 6.19%, mainly driven by growth in income from fund distribution, bond underwriting, and other sources. In 2025, Bank of China recorded fee and commission income of 82.24B yuan, up 7.37% year over year.

Growth momentum will continue to be released

Regarding the core drivers behind the rebound in intermediary business income at the six state-owned commercial banks, Xue Hongyan, a special researcher at the Su商 Bank Research Institute, told reporters from the Securities Daily that first, in 2025, the capital market continued to improve, and the wealth management business benefited from the rebound, becoming an important engine for growth in intermediary business income. Second, the effects of the earlier fee-reduction and benefit-giving policies have gradually stabilized, bringing room for a restorative growth in intermediary business. Finally, major state-owned banks have continued to step up efforts in their traditional strengths, with businesses such as bills operations and custody creating new momentum. In addition, digital transformation has been pushed deeper, and coupled with macro policy support, it jointly promotes the repair of intermediary business.

Yang Haiping, a researcher at the Shanghai Academy of Finance and Law, told reporters from the Securities Daily that in the context of sustained pressure on net interest margins, commercial banks generally make expanding non-interest income a strategic priority. They tilt resource allocation and performance appraisal, forming systematic support, especially by promoting rapid growth in wealth management business.

Xue Hongyan further analyzed that in an industry backdrop where net interest margins continue to narrow, the support role of intermediary business income for banks’ profitability has become increasingly prominent. It has shifted from being supplementary income to an important pillar of the income structure. In the long run, owing to the characteristics of being low-capital and having high stickiness, intermediary business will continue to focus efforts in areas such as wealth management, investment banking, and settlement and custody, helping banks move toward a fine-tuned operating model centered on customers, driven by technology, and featuring diversified business lines. He believes that in the future, the core focus of competition in the banking industry will center on wealth management capability, the depth of digital transformation, and customers’ comprehensive service capability. The share of intermediary business income will become a key indicator for measuring the effectiveness of bank transformation.

Looking ahead to 2026, Xue Hongyan said that macroeconomic policies will continue to be strengthened, with fiscal and monetary policies working together to support the real economy. At the same time, residents’ wealth allocation is accelerating its shift toward non-deposit financial assets, providing continuous momentum for the growth of wealth management business. Banks themselves have also generally implemented plans to raise intermediary business income, focusing on developing low-capital, high-stickiness businesses. Against this backdrop, intermediary business income at the six state-owned commercial banks is expected to maintain a growth trend.

(Editor: Qian Xiaorui)

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