Industry Report

Credit growth in 1Q26 is expected to be slower YoY due to quarterly credit control policies and restrictions on real estate lending;

NIM in 1Q26 is expected to remain broadly flat YoY. Credit growth is still projected to outpace deposit growth, so the increase in lending rates is reflected faster than the rise in cost of funds. However, credit expansion is constrained by real estate exposure and system-wide credit room, which slows down high-yield lending activities;