China's 6 State Banks Post H1 Growth, First Since 2022
China's six largest state-owned banks recorded their first simultaneous revenue and net profit growth in the first half of 2026 since 2022, signalling a tentative rebound in net interest margins.
First Shared Growth Since 2022
China's six largest state-owned banks achieved simultaneous revenue and net profit growth for the first half of 2026. This marks their first shared H1 increase since 2022.
The group includes Industrial and Commercial Bank of China (ICBC), China Construction Bank (CCB), Agricultural Bank of China (ABC), Bank of China (BOC), Bank of Communications (Bocom), and Postal Savings Bank of China (PSBC). Together, these institutions generated over 2 trillion yuan (US$297 billion) in operating income during the period. Combined net profit attributable to shareholders amounted to approximately 712.6 billion yuan.
Net Interest Margin Rebound
Revenue across the six lenders grew between 4 and 11 per cent. Net profit for the group rose 4 to 6 per cent. This consistent positive growth across all six banks had not occurred since 2022. The improvement stems from a tentative rebound in net interest margin (NIM), defined as the spread between what banks earn on loans and pay on deposits.
NIMs had faced steady compression for two years, pushing the industry average to a record low of nearly 1.4 per cent in the first quarter of 2026.
China Construction Bank (CCB) led the turnaround, reporting a half-year NIM of 1.37 per cent. This represented a 0.03 percentage point increase from its full-year 2025 figure and a 0.01 percentage point rise from the first quarter of 2026. Dong Ximiao of Merchants Union Consumer Finance stated that a structural inflection point remains unconfirmed.
Future stability for the banking sector will depend on broader economic recovery and shifts in China's interest rate environment. This tentative rebound shows a potential easing of pressure on bank profitability, important for China's financial stability.
This article is journalism, not investment advice; consult a licensed professional before making financial decisions. Market data is indicative, may be delayed, and should be verified with your broker or exchange before use.
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