(Yicai) Sept. 4 -- Staff remuneration at 42 of China’s listed banks fell in the first half of the year for the first time ever, reflecting the pressure on lenders from narrowing net interest margins, while some managed to increase salaries.

Listed banks paid their staff CNY465.4 billion (USD65.4 billion) in the six months ended June 30, a 0.2 percent dip from a year earlier, according to financial information platform Wind International, which compiled the data from lenders’ semi-annual financial reports. The average monthly salary fell 2.7 percent to CNY35,000 (USD4,920).

“In the past, monthly salaries started from CNY30,000 (USD4,200),” an employee at a large bank told Yicai. “But now I’m earning less than CNY10,000 a month. I also have debts, and I owe the bank several thousands of Chinese yuan,” the equivalent of hundred of US dollars.

Thirty of the 42 banks paid out less in wages, 13 more than a year ago. China Merchants Bank was the highest payer, with an average monthly salary of CNY52,000 (USD7,300). It was the only lender paying employees more than CNY50,000 a month on average, but that was still a year-on-year drop of 3.7 percent. Staff received around CNY6,000 (USD843) more each three years ago.

Postal Savings Bank of China logged the biggest salary drop, plunging 10.2 percent. On average, wages contracted 2.79 percent at state-owned banks and 2.82 percent at joint-stock banks.

The shrinking wage packets are attributed to a challenging financial environment for lenders, particularly tighter net interest margins, or the difference between what a bank earns on loans and what it pays on deposits, resulting from factors such as changes in monetary policy and competitive market conditions.

But some banks actually raised salaries in the first half. Shanghai Bank led the way with a 16.1 percent increase to an average of CNY42,000 (USD5,900) a month. Wuxi Rural Commercial Bank, Zijin Rural Commercial Bank, Jiangyin Rural Commercial Bank, and Bank of Zhengzhou all gave big increases, with monthly payments reaching between CNY25,000 and CNY30,000.

Lenders also let go staff in the period. The 42 listed banks have laid off 38,000 employees since the start of the year, reducing the ranks of bank staff to 2.5 million, according to Wind data. 

Industrial and Commercial Bank of China slashed its headcount by more than 10,000, while each of Construction Bank, Agricultural Bank of China, and Postal Savings Bank of China made more than 4,000 staff redundant. Of the big six state-owned banks, only Bank of China is hiring. It has added 1,700 employees since the year began.

Editor: Kim Taylor