Banks in Macau recorded profits of 2.71 billion patacas (€292.2 million) in the first two months of the year, a 14.3% increase compared to the same period in 2025.
According to data released by the Monetary Authority of Macau, the main driver behind the rise was a 24.4% increase in net interest income, which reached 3.09 billion patacas (€332.1 million). This reflects the difference between loan revenues and deposit costs.
The growth came despite three cuts to the benchmark interest rate in 2025, including a 0.25 percentage point reduction in December, following moves by the Federal Reserve.
Loans—the primary source of bank income globally—rose slightly by 0.3% year-on-year, totaling 1.05 trillion patacas (€112.7 billion). Meanwhile, deposits grew at a faster pace, increasing 7.4% to 1.42 trillion patacas (€152.5 billion) by the end of February.
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In 2025, Macau’s banking sector posted profits of 7.34 billion patacas (€769 million), nearly doubling the previous year’s figure. The most profitable year on record remains 2020, when profits reached nearly 17 billion patacas (€1.78 billion).
Macau has two note-issuing banks: the local branch of Bank of China and Banco Nacional Ultramarino, which is part of the Caixa Geral de Depósitos.
BNU reported net profits of 431.2 million patacas (€45 million) in early February, down from the previous year, attributing the decline to falling interest rates.
Non-performing loans (NPLs) fell for the third consecutive month, reaching 48.8 billion patacas (€5.25 billion) after declining 11.6% in 2025, marking the first annual drop since 2013.
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Overdue loans accounted for 4.7% of total lending, down 0.8 percentage points year-on-year, though the ratio rises to 5.1% for loans to entities or individuals outside Macau.
For comparison, the European Banking Authority considers banks with at least 5% of non-performing loans to have a “high risk exposure”, requiring corrective strategies.
Despite this, Macau’s current NPL ratio remains far below the 25.3% peak recorded in 2001, during the global economic downturn following the collapse of the dot-com bubble.
