3328.HK▲
Bank of Communications first-half 2026 net profit 47.874 billion yuan, up 4.04% year on year
Bank of Communications released its first-half 2026 report. During the reporting period, total operating revenue reached 142.343 billion yuan, up 6.73% year on year, and net profit attributable to the parent company was 47.874 billion yuan, up 4.04% year on year, with both indicators rising for two consecutive years. Net cash inflow from operating activities was 94.943 billion yuan, a sharp year-on-year increase of 77.53%. The company's asset-liability ratio was 91.98%, ranking third among peers and down 0.02 percentage points from the previous quarter. Return on equity was 3.70%, up 0.15 percentage points year on year, and diluted earnings per share was 0.52 yuan, ranking second among peers. The number of shareholders was 337,600, and the top ten shareholders held 79.75% of total share capital.
3328.HK▲
China's Big Five Banks Post 3-5% Profit Growth in H1, Loan Demand Weak
China's five major state-owned banks reported a 3-5% increase in net profit for the first half of 2026 compared to the same period last year. Despite weak loan demand due to economic slowdown, deposit costs fell as maturing time deposits were repriced at lower interest rates. The profit growth rates for four of the banks were the highest since 2022, while Bank of Communications saw its best growth since 2023. Industrial and Commercial Bank of China saw net profit rise 3.3%, Bank of China 5.1%, Agricultural Bank of China 4.9%, China Construction Bank 4.6%, and Bank of Communications 4.0%. Net interest margins were flat in the second quarter for ICBC and Bank of Communications, while the other three banks saw slight increases. Non-performing loan ratios remained stable from end-March to end-June for Agricultural Bank, Bank of China, and Bank of Communications, while ICBC and China Construction Bank saw theirs decline to 1.29%. New loans in July turned negative, indicating continued weak loan demand. China's economic growth is sluggish at around 4%, with no sustained recovery expected.
3328.HK▲
Bank of Communications Plans Cash Dividend of 0.168 Yuan Per Share
Bank of Communications announced on August 28 that it plans to distribute a cash dividend of 0.168 yuan per share, including tax, to all shareholders. The total payout is expected to be 14.845 billion yuan, accounting for 31.0% of net profit attributable to the parent company.
Bank of Communications first-half net profit attributable to parent 47.874 billion yuan, up 4.04% year on year
Bank of Communications released its 2026 half-year results. In the first half, net profit attributable to the parent reached 47.874 billion yuan, up 4.04% year on year, while operating revenue was 142.343 billion yuan, up 6.73% year on year, with both growth rates improving from the first quarter. Net interest margin was 1.23%, up 2 basis points year on year, and net interest income was 92.592 billion yuan, up 8.62% year on year. The contribution of subsidiaries and overseas branches to the group's net profit attributable to the parent rose by 3.67 percentage points from the previous year. In addition, Bank of Communications plans an interim dividend of 14.845 billion yuan in cash, raising the payout ratio to 31% of net profit attributable to the parent.
3328.HK▼
A roundup of bank personal loan rate caps: Big four banks at 6%, some city and rural commercial banks lower than joint-stock banks
Several banks recently announced caps on the overall financing costs of personal loans. State-owned large banks, joint-stock banks, city commercial banks, and rural commercial banks show an overall stepwise increase but with internal divergence. Industrial and Commercial Bank of China, Agricultural Bank of China, Bank of China, and China Construction Bank all have an annualized rate cap of 6% for personal consumer loans and business loans, while Postal Savings Bank of China and Bank of Communications set the cap at 12%. Among joint-stock banks, China Merchants Bank, China CITIC Bank, and several others cap their self-operated consumer loans at 12%, Ping An Bank reaches 18.5%, and China Bohai Bank and Evergrowing Bank go up to 24%. For business loans, China Everbright Bank caps at 8%, Huaxia Bank at 10%, Ping An Bank at 20%, and China Bohai Bank at four times the loan prime rate. Among city commercial banks, Qilu Bank, Bank of Jilin, and Qishang Bank set the overall financing cost cap at 18%, while Bank of Chengdu caps self-operated consumer loans and business loans at just 7%. Rural commercial banks show clear divergence: Chongqing Rural Commercial Bank, Shunde Rural Commercial Bank, and Guangzhou Rural Commercial Bank cap consumer loans at 12%, Xiamen Rural Commercial Bank and Zijin Bank go as high as 24%, and Chongqing Rural Commercial Bank also sets a 10% cap for loans to farmers. The cap for cooperative internet loans is generally 24%. These caps take effect from August 1, 2026, and all represent the rate ceiling under normal repayment conditions. Su Xiaorui, senior researcher at Suxi Zhiyan, said that the rate caps correspond to different bank customer segments, and transparent disclosure with tiered stratification is an important sign of a maturing credit market.
3328.HK▲
Bank of Communications completes issuance of 40 billion yuan tier-2 capital bonds with a coupon rate of 1.89%
Bank of Communications has completed the issuance of its 2026 second tranche tier-2 capital bonds through Bond Connect in the national interbank bond market. The issuance size is 40 billion yuan, with a coupon rate of 1.89%. The bonds are 10-year fixed-rate bonds with a conditional issuer call option at the end of the fifth year, and the issuance was completed on July 23, 2026.
3328.HK▼impact 4
China's personal loans see record-high defaults
Defaults on personal loans in China have surged to a record high. According to research firm Gavekal Dragonomics, household non-performing loan balances rose by more than 20 percent last year to a record 2.22 trillion yuan. That is equivalent to about 1.6 percent of GDP, meaning one in ten adults is behind on debt payments. All five major state-owned banks saw their personal loan NPL ratios rise last year, with Bank of Communications up 0.5 percentage points to 1.58 percent. China Merchants Bank's first-quarter personal loan NPL ratio rose 0.13 percentage points year-on-year to 1.14 percent, while its credit card delinquency rate climbed 0.15 percentage points to 1.90 percent. Analysts believe actual bad debts are higher than reported figures.
3328.HK▲
Bank Stocks Buck the Downtrend While Memory Chip Sector Tumbles
China's A-share market saw all three major indices decline in the morning session on July 13, with the Shenzhen Component Index and the STAR Composite Index both falling more than 2%. Over 4,500 stocks across the market ended in the red. The memory chip sector suffered a sharp pullback, with Demingli hitting its daily limit down, Shannon Core Innovation plunging 19.93%, and Puya Semiconductor and Beijing Junzheng both dropping over 11%. Bank stocks bucked the trend and moved higher, with Bank of Suzhou surging over 6%, Bank of Ningbo rising over 4%, and Industrial and Commercial Bank of China and Bank of Communications gaining more than 2%. The total dividends of 41 banks for the 2025 fiscal year exceeded 645.6 billion yuan, setting a new record. The traditional Chinese medicine sector saw a short-term spike, with Longshen Rongfa hitting its 20% daily limit up and Tianmu Pharmaceutical reaching its 10% daily limit up. The State Council recently approved the 15th Five-Year Plan for the Revitalization and Development of Traditional Chinese Medicine.
China