Hangzhou Bank H1 2026 Net Profit Up 9.87%, Plans Dividend

Hangzhou Bank disclosed its 2026 interim report on August 26. As of end-June 2026, total assets stood at RMB 2.468078 trillion, up 4.46% from end-2025. Operating income reached RMB 21.048 billion, up 4.75% year on year, while net profit attributable to shareholders was RMB 12.813 billion, up 9.87%. The non-performing loan (NPL) ratio was 0.76%, flat versus end-2025. Basic earnings per share (non-annualized) were RMB 1.70, and weighted average return on equity (non-annualized) was 8.87%.

In the first half, net interest income rose 19.17% to RMB 15.599 billion, an increase of RMB 2.509 billion, accounting for 74.11% of operating income, up 8.97 percentage points from the year-earlier period. Net interest margin was 1.39%, up 0.04 percentage points. Average balances of interest-earning assets and interest-bearing liabilities grew 15.60% and 12.08% year on year, respectively. Loan yield fell 39 basis points, while the average cost of interest-bearing liabilities declined 38 basis points to 1.49%, and deposit cost fell 40 basis points. Fee and commission income rose 16.50% to RMB 2.722 billion, with custody and other fiduciary fees up 47.92% to RMB 1.998 billion.

As of end-June 2026, total loans reached RMB 1.162286 trillion, up 8.43% from end-2025; total liabilities were RMB 2.294265 trillion, up 4.30%; and deposits were RMB 1.498897 trillion, up 4.05%. Wealth management business stabilized above RMB 600 billion. The overdue-to-NPL ratio was 73.34%, and loans overdue by more than 90 days to NPLs was 49.27%. Provision coverage ratio was 471.96%, and loan provision ratio was 3.59%. Capital adequacy ratio was 13.99%, tier-1 capital adequacy 11.51%, and core tier-1 capital adequacy 9.52%.

Corporate loan NPL ratio improved to 0.53%, down 0.05 percentage points from end-2025, while retail loan NPL ratio rose to 1.48%. The bank downgraded certain loan risk classifications under an early-exposure, early-resolution principle, strengthened micro-credit and mortgage management, and prudently controlled internet lending. It proposed an interim cash dividend of RMB 4.60 per 10 shares (pre-tax), totaling RMB 3.335 billion, up 21.05% year on year. Per-share cash dividend rose RMB 0.08, representing 27% of interim net profit attributable to ordinary shareholders, up 2.26 percentage points. Since its 2016 listing, the bank's attributable net profit and total dividends have grown at annualized compound rates of 19% and 22%, respectively, with cumulative dividends of RMB 27.218 billion.

The 2025 annual dividend of RMB 2.80 per 10 shares was paid in June 2026, bringing the two distributions to RMB 7.40 per 10 shares.

2026 marks the start of a new strategic cycle. The bank adopted its 2026-2030 development strategy, built on three-dimensional goals, three orientations, six new strategic businesses, and six capability enhancements. The six new businesses cover corporate finance, SME finance, retail finance, financial markets, regional branch development, and subsidiary-parent synergy. Corporate banking deposits reached RMB 990.878 billion, up RMB 15.203 billion from end-2025, and loans (excluding discounts) rose 10.30% to RMB 773.884 billion.

Manufacturing loans grew 13.82% to RMB 127.777 billion; technology loans rose 18.21% to RMB 138.014 billion; and green loans increased 10.68% to RMB 120.278 billion. SME lending reached RMB 155.589 billion, inclusive of RMB 57.489 billion in inclusive small-enterprise legal-person loans and RMB 22.851 billion in inclusive credit loans. Retail savings deposits rose 10.41% to RMB 398.296 billion, and client assets under management grew 6.89% to RMB 744.978 billion, with 11.6008 million customers, up 384,300. Staff numbered 14,505, including 4,157 with master's or doctoral degrees and 10,004 with bachelor's degrees. Mobile banking users reached 10.9683 million, up 4.87%, with remote banking customer satisfaction of 99.15% and 90.78% of services automated.

Hangzhou Bank is headquartered in Hangzhou, with deep roots in Zhejiang and expansion into the Yangtze River Delta and first-tier cities, covering the whole province and key cities such as Beijing, Shanghai, Shenzhen, Nanjing, and Hefei. In the first half, Hangzhou generated RMB 10.087 billion in operating income, or 47.92% of the total, while other regions contributed 52.08%. Loans in Zhejiang accounted for 79.69% of total loans, up 0.25 percentage points from end-2025, with Hangzhou at 41.13% and other Zhejiang regions at 38.56%. In The Banker's 2026 Top 1000 World Banks ranking, Hangzhou Bank placed 100th by tier-1 capital, up 10 places from 2025.