Chinese Banks’ Net Interest Margin Hits Record Low

China’s commercial banks came under continued pressure in the first quarter as net interest margin (NIM) fell to a record low.

The sector’s NIM — a key profitability gauge measuring net interest income as a percentage of interest-earning assets — narrowed by 2 basis points from the end of last year to 1.4% at the end of March, data from the National Financial Regulatory Administration (NFRA) showed.