A-share banks' 2026 interim results: 36 of 42 post revenue and profit growth

All 42 A-share listed banks have now published their 2026 interim reports. The data show that the 42 banks generated combined operating revenue of approximately RMB 3.14 trillion in the first half, up 7.42% year on year, and combined net profit attributable to shareholders of about RMB 1.13 trillion, up 2.96%. Among them, 36 banks reported positive growth in both operating revenue and net profit attributable to shareholders.

By institution type, the six large state-owned banks generated combined operating revenue of RMB 2,004.987 billion in the first half, up 9.38% year on year, with net profit attributable to shareholders of RMB 712.598 billion, up 4.41%. City commercial banks performed notably well, with Xiamen Bank's operating revenue up 19.60% year on year and Bank of Qingdao's net profit attributable to shareholders up 18.08%. Joint-stock banks faced overall pressure, as the nine listed joint-stock banks saw total operating revenue rise only 2.85% and net profit attributable to shareholders fall 2.56% year on year. Among the ten listed rural commercial banks, four reported negative year-on-year revenue growth, but all ten posted positive net profit growth.

On net interest margins, the long-standing narrowing trend among listed banks showed positive changes. Of the 42 A-share listed banks, 18 saw net interest margins rise quarter on quarter, one remained flat, and 17 saw year-on-year improvements. Bank of Xi'an reported a first-half net interest margin of 1.99%, up 0.29 percentage points year on year. According to data from the National Financial Regulatory Administration, the commercial banking sector's net interest margin stood at 1.41% in the second quarter of 2026, up 0.01 percentage points from the first quarter, marking the first quarter-on-quarter increase since the first quarter of 2022. The stabilization of net interest margins mainly came from lower funding costs driven by repricing of deposits. Among the 40 banks that disclosed funding cost data, the average cost of interest-bearing liabilities fell by more than 34 basis points year on year. Several banks posted rapid growth in net interest income, with Bank of Nanjing's net interest income up over 40% year on year, and Suzhou Bank, Bank of Xi'an, Xiamen Bank, and Chongqing Bank each reporting year-on-year growth of more than 20%.

On the asset side, rapid growth in corporate lending provided important support for the resilience of net interest income. In the first half, listed banks' corporate loans grew by an average of over 9.3%, with Ningbo Bank, Suzhou Bank, and Qilu Bank rising 19.32%, 18.41%, and 17.28%, respectively. Credit allocation was tilted toward technology and manufacturing sectors. Asset quality remained broadly stable, with 24 listed banks reporting lower non-performing loan ratios than at the end of 2025, representing more than half of the total. A few banks saw temporary rebounds in non-performing ratios during the credit restructuring period.

On non-interest income, 20 listed banks reported year-on-year growth in the first half. Large state-owned banks and joint-stock banks showed greater resilience. Postal Savings Bank's non-interest income rose 12.25% year on year, lifting its share of non-interest income to 23.6%, a record high since listing. Agricultural Bank of China's other non-interest income grew 43.4% year on year, and China Construction Bank's non-interest income rose 16.74%. Investment gains were the main contributor to non-interest income growth. A few banks saw declines, including Hangzhou Bank, Qingdao Rural Commercial Bank, and Bank of Changsha.

Net fee and commission income showed clear divergence. Ningbo Bank's net fee and commission income grew 53.90% year on year, while Changshu Bank, Bank of Qingdao, and Jiangsu Suzhou Rural Commercial Bank rose 39.15%, 32.66%, and 30.8%, respectively. Industrial and Commercial Bank of China reported net fee and commission income of RMB 69.2 billion in the first half, up 3.3% year on year. China Merchants Bank's wealth management income grew 18.44% year on year. Industrial Bank's net fee and commission income was RMB 14.201 billion, up 8.61% year on year, with its share of total revenue rising to 12.89%. Meanwhile, Bank of Xi'an saw this metric fall 42.35% year on year, and Bank of Changsha, Bank of Nanjing, and Bank of Zhengzhou declined 18.55%, 18.50%, and 17.32%, respectively. In the first half of 2026, listed banks showed signs of stabilization in operations, driven by lower funding costs and improved credit pricing, but gaps remain evident among banks in wealth management transformation and comprehensive financial service capabilities.