On August 14, Ping An Bank Co., Ltd. released its semi-annual report for 2026: in the first half of the year, the bank achieved operating revenue of 70.617 billion yuan, up 1.8% year-on-year, and net profit attributable to shareholders of 25.696 billion yuan, an increase of 3.3% year-on-year. On the surface, this appears to be a defensive mid-year report with both revenue and profit showing positive growth, but a breakdown of the segment data reveals a significant shift in the profit structure: the corporate banking business has effectively taken over as the profit engine, while the retail segment has been heavily squeezed by high credit impairment charges.
Segment operating data shows that in the first half of the year, retail finance contributed 44.7% of the bank's total operating revenue. However, due to credit and other asset impairment losses reaching 17.772 billion yuan, which consumed most of the operating profit, the retail business ultimately contributed only 2.574 billion yuan in pre-tax profit, with its profit share dropping to 8.4%. Nearly 90% (89.2%) of the bank's total credit and other asset impairment losses were used to cover retail-side risks. In contrast, wholesale finance booked only 2.190 billion yuan in impairment losses during the first half but secured 72.9% of the bank's total profit.
The adjustment strategy on the asset side has also become clear. As of the end of June, the bank's total principal of loans and advances issued was 3.45 trillion yuan, up 1.8% from the end of the previous year. Among this, corporate loans increased by 3.7% to 1.73 trillion yuan (general corporate loans grew by 5.2%), while the personal loan balance stood at 1.73 trillion yuan, roughly flat compared to the end of the previous year. The "one expansion, one stabilization" approach—expanding corporate credit while stabilizing the retail asset portfolio—constitutes the bank's current pragmatic choice.
Regarding the net interest margin, the annualized net interest margin (NIM) for the first half remained at 1.80%, flat year-on-year and up 2 basis points from the full year of 2025. Against a backdrop of industry-wide pressure, this stabilization primarily comes from improved liability-side costs: the average deposit interest rate fell to 1.38%, down 38 basis points year-on-year, and the overall interest-bearing liability cost rate dropped from 1.79% in the same period last year to 1.42%, a decline of 37 basis points. On the asset side, yields generally declined. The average yield on loans and advances fell to 3.64%, down 39 basis points year-on-year, with the average yield on personal loans dropping from 5.04% to 4.45% and corporate loan yields falling to 2.91%. Nearly 38 basis points of cost savings on the liability side offset the decline in asset-side yields.
Overall, Ping An Bank Co., Ltd.'s mid-year report demonstrates its carrying capacity during a period of business adjustment. For investors, beyond the traditional label of a "retail dark horse," attention should still be paid to the support from corporate banking for the fundamentals, the marginal effects of liability-side cost control, and the progress of clearing accumulated risk assets.
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