China's Big Five Banks Post 3-5% Profit Growth in H1, Loan Demand Weak

Earnings
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Summary · why it matters

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.

Impact on stocks 5

Others▲ · 5 stocks
Bank of Communications Co
601328
▲ PositiveCapitalrelevance

Bank of Communications reported 4.0% H1 net profit growth, its best since 2023, with flat NIM and stable NPLs.

Bank of China Limited
601988
▲ PositiveCapitalrelevance

Bank of China posted the strongest H1 net profit growth at 5.1% with a stable NPL ratio.

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