Macau Banks Post 16.8% Profit Rise in 2026
Net interest income drove higher operational results for Macau banks in the first nine months of 2026, as the sector's non-performing loans continued to fall.
Updated on Nov. 4, 2026 in Banking
Live Poll
Do you think your household's borrowing and saving costs are getting better or worse?
Macau banks recorded operational results of MOP7.83 billion in the first nine months of 2026, up 16.8 percent from the same period in 2025. The gain came as net interest income rose 29.6 percent to MOP15.7 billion.
Why it matters
Net interest income, the gap between revenue from loans and interest paid on deposits, was the main driver of the increase. The results follow the regulator's September 17, 2026 approval of the first base rate increase since 2023, which came after a decision by the US Federal Reserve.
Operational results rose 16.8 percent year-on-year to MOP7.83 billion, with net interest income up 29.6 percent to MOP15.7 billion. Operating expenses grew 14.6 percent and provisions rose 26.6 percent, and the source does not explain how these costs will trend in coming quarters.
The players
Monetary Authority of Macau
The Monetary Authority of Macau is the territory's financial regulator, which oversees banking supervision and approved the September 2026 base rate increase.
US Federal Reserve
The US Federal Reserve is the central bank of the United States, whose decision to raise rates prompted the Macau regulator's subsequent base rate increase.
The details
Non-performing loans in Macau's banking system fell for the fifth consecutive month to MOP45.6 billion, and overdue loans made up 4.4 percent of total bank lending, down one percentage point from September 2025. Deposits at Macau banks reached MOP1.47 trillion at the end of September, and banks reported 2025 operational results of MOP7.34 billion, up 92.7 percent from the prior year.
Timeline
2025: Macau banks earned MOP7.34 billion in operational results.
June 2025: Non-performing loans peaked at MOP57.8 billion.
September 17, 2026: The regulator approved the first base rate increase since 2023.
End of September 2026: Deposits reached MOP1.47 trillion.
First nine months of 2026: Banks recorded MOP7.83 billion in operational results.
Market Dynamics
Macau's base rate increase on September 17, 2026 followed a Federal Reserve decision, marking the first change to the territory's key rate since 2023. The move places Macau's banks in a rising-rate environment that lifts net interest income, which the source identifies as the main driver of the sector's 16.8 percent operational gain.
Rising net interest income typically widens bank margins, which may affect the earnings of investors holding bank shares. Savers with deposits at Macau banks may see changes in the rates offered as the base rate moves, though the source does not specify deposit pricing.
The takeaway
Higher base rates can lift bank earnings through net interest income, but rising costs and provisions show that profit gains do not come without trade-offs. Readers tracking Macau's financial sector should watch how the regulator's next moves affect loan growth and asset quality.
Further reading
For more on how rate changes shape lending and deposits, see the Banking section.
Source note: This article includes information reported by Macau Business.
Live Poll
Do you think your household's borrowing and saving costs are getting better or worse?
