Taiwan State-Owned Banks’ Mainland China Branch Profits Fall More Than 16% in 2025 as Economy Weakens

Taiwan’s state-owned banks have long operated branches in mainland China, serving Taiwanese businesses and expanding their renminbi lending operations. Their profits are highly sensitive to local economic conditions, demand for funds and lending margins. Continued weakness in mainland China’s economy in 2025 squeezed banking margins and placed greater pressure on their local operations.

The mainland China branches of Taiwan’s state-owned banks posted combined pretax profit of NT$3.036 billion in 2025, down 16.43% from 2024. Most reported lower earnings, mainly because of the weak mainland economy and narrower interest margins. Only Bank of Taiwan and Taiwan Cooperative Bank maintained profit growth.