Bank of Communications H1 2026 Net Profit Up 4.04%, Plans Interim Dividend of RMB 14.85 Billion

Bank of Communications released its interim results for the first half of 2026. During the period, the bank achieved attributable net profit of RMB 47.874 billion and operating income of RMB 142.343 billion, up 4.04% and 6.73% year on year respectively, with both growth rates accelerating from the first quarter. Management said the bank will continue its interim dividend for 2026, proposing a cash distribution of RMB 14.845 billion, raising the payout ratio to 31% of net profit attributable to shareholders.

As of end-June 2026, the bank's total assets stood at RMB 16.26 trillion, up 4.58% from end-2025; customer loans reached RMB 9.49 trillion, up 4.01%; total liabilities were RMB 14.96 trillion, up 4.82%; and customer deposits amounted to RMB 9.92 trillion, up 6.53%. Growth in domestic RMB deposits outpaced comparable peers. In terms of profitability, the net interest margin was 1.23%, up 2 basis points year on year, while net interest income rose 8.62% to RMB 92.592 billion. Asset quality metrics showed an NPL ratio of 1.30%, a provision coverage ratio of 203.80%, and a core tier 1 capital adequacy ratio of 11.25%. The cost-to-income ratio was 27.47%, down 2.47 percentage points from the same period in 2025.

In lending, customer loan balances increased by RMB 366.102 billion from end-2025, up 4.01%. The bank expanded credit support to technology innovation, green lending, and small and medium-sized enterprises, with loans in the "five major articles" areas growing rapidly and their share of total balances rising.

Regionally, as of end-June, the bank's RMB general loans in Shanghai grew 9.85% from the start of the year, ranking first in market loan growth; loans in the Yangtze River Delta region increased by more than RMB 170 billion, and the bank's loan market share in both Shanghai and the Yangtze River Delta improved from end-2025. The Yangtze River Delta region contributed nearly half of the bank's total profit and close to 40% of net revenue in the first half. BOCOM Financial Leasing maintained the top position in shipping leasing asset financing scale, while BOCOM Investment saw new pure equity project volume and value more than double year on year. The bank ranked among the top in agency clearing volume in interbank factor markets and settlement volume in securities and futures markets, and was the sole licensee for the "China-Pakistan Connect" business, with combined business volume under "Bond Connect" and "Swap Connect" reaching RMB 977.2 billion.

At the results briefing, President Zhang Baojiang said that 2026 marks the first year of the "15th Five-Year Plan" period. The bank has proposed its "One-Two-Three-Five-Five" strategy, which entails upholding and strengthening Party leadership, guided by one overarching goal, driven by two innovation engines—Shanghai's home market advantage and digital-intelligent transformation—building three distinctive strengths in comprehensive services, cross-border services, and wealth management services, reinforcing five foundational capabilities in customer operations, risk prevention, technology leadership, resource allocation, and systematic advancement, and delivering on the five major articles of technology finance, green finance, inclusive finance, pension finance, and digital finance.