Industrial Bank H1 2026 Revenue Falls 0.25%, Net Profit Drops 4.66%
Industrial Bank reported H1 2026 revenue of RMB 110.177 billion, down 0.25% year on year, and net profit attributable to shareholders of RMB 41.131 billion, down 4.66%. Total assets reached RMB 11.46 trillion, up 3.31% from end-2025. The non-performing loan ratio held at 1.08%, with a provision coverage ratio of 225.67%. Loan growth was driven by corporate lending, while retail loans contracted.
On the evening of August 27, 2026, Industrial Bank released its interim results for the first half of 2026. As of end-June, total assets stood at RMB 11.46 trillion, up 3.31% from end-2025. During the reporting period, the bank recorded operating revenue of RMB 110.177 billion, down 0.25% year on year, and net profit attributable to shareholders of RMB 41.131 billion, down 4.66%. The non-performing loan ratio remained at 1.08%, unchanged from the start of the year, while the provision coverage ratio was 225.67%, indicating broadly stable asset quality. The bank said that interest rates on newly issued loans continued to decline in the first half, with overall social financing costs at historical lows, and that it had mitigated net interest margin compression through balance sheet and liability management.
In terms of balance sheet structure, customer loans reached RMB 6.16 trillion as of end-June, an increase of RMB 215.6 billion, or 3.62%, from the start of the year, driven mainly by corporate lending. Corporate loans grew 8.79% from the beginning of the year, while retail loans contracted 3.7%. Among these, industrial finance loans rose to RMB 2.63 trillion, up RMB 155.2 billion from the start of the year, becoming a key driver of loan growth. Technology finance and green finance loans grew 12.98% and 9.63%, respectively, outpacing overall loan growth. Deposits increased to RMB 6.23 trillion, up 5.03% from the start of the year, with both demand and time deposits growing around 3%. The deposit cost rate fell 34 basis points year on year.
On the income side, net interest income for the first half was RMB 72.804 billion, down 1.29% year on year, with the decline narrowing by 0.84 percentage points from the first quarter. The net interest margin was 1.60%, down 15 basis points year on year, with the decline narrowing by 3 basis points from the first quarter. Non-interest income reached RMB 37.373 billion, up 1.83% year on year. Net fee and commission income was RMB 14.201 billion, up 8.61% year on year, with growth accelerating by 1.16 percentage points from the first quarter. Among these, payment and settlement, wealth sales, and custody income grew 18%, 16%, and 11% year on year, respectively, lifting the share of fee income to 12.89%.
In asset quality, the bank continued to strengthen risk management. Newly formed non-performing assets in the first half decreased by RMB 3.6 billion year on year, while recoveries from written-off and reserved accounts reached RMB 6.1 billion. New non-performing loans in the corporate segment declined, and new non-performing loans in real estate continued to fall, with no new non-performing loans from local government financing platforms. New non-performing loans in the retail segment increased somewhat, but overall risk remained manageable. In the credit card business, average monthly collections fell 19% year on year, and the collection rate declined by 0.5 percentage points, indicating easing pressure from new overdue loans.