The recovery trend in the banking sector's operating performance appears highly probable for the 2026 interim reports.
According to the 2026 interim report released by Ping An Bank Co.,Ltd., the bank achieved operating revenue of RMB 70.617 billion, a year-on-year increase of 1.8%, and net profit of RMB 25.696 billion, up 3.3% from the same period last year. Both revenue and profit recorded growth.
Additionally, the net interest margin, a key factor influencing the bank's performance, stood at 1.80%, flat compared to the same period last year and up 2 basis points from the full-year figure for the previous year. Non-interest net income also achieved year-on-year growth. These various data points indicate a relatively stable upward trend in the bank's 2026 performance.
Deposit and Loan Business Shows Overall Stabilization and Uptick
The interim report shows that, as of the end of the first half of the year, Ping An Bank Co.,Ltd. had issued total loans and advances of RMB 3,452.274 billion, an increase of 1.8% from the end of the previous year. Corporate loan balances grew by 3.7% from the end of 2025, with general corporate loan balances increasing by 5.2%. Sectors such as technology finance and manufacturing saw robust loan growth. Personal loan balances remained largely flat compared to the end of the previous year.
In terms of deposit scale, the bank's total liabilities at the end of June stood at RMB 5,480.571 billion, up 2.0% from the end of 2025. Absorbed deposit principal balances reached RMB 3,660.587 billion, a 2.2% increase from the end of the prior year.
Notably, as of the end of June, the bank's managed retail customer assets (AUM) totaled RMB 4,400.227 billion, up 3.8% from the end of the previous year. The number of retail customers reached 129 million, an increase of 0.8%. Personal deposit balances stood at RMB 1,291.836 billion, up 0.3% from the end of 2025. All key retail business indicators have clearly stabilized, suggesting the segment is gradually emerging from its historical adjustment phase and beginning to build upward momentum.
Interest Spread and Margin Show Surprising Stability
The key indicators for assessing a bank's interest-based business are "volume, price, and risk." Over the past two years, the entire industry's deposit-loan interest spread has faced sustained and rapid downward pressure, a challenge for the whole sector.
However, based on Ping An Bank Co.,Ltd.'s latest interim report, the bank's annualized net interest margin for the reporting period was 1.80%, unchanged from the same period last year and an improvement year-on-year. The annualized net interest spread was 1.81%, an increase of 0.05 percentage points year-on-year. Both indicators reflect a significant sign: as the period of rapid decline in loan interest rates gradually passes, the ongoing challenges faced by banks in their deposit and loan businesses are easing or even improving.
Asset Quality Remains Stable
In terms of asset quality, Ping An Bank Co.,Ltd.'s performance also remained steady. The interim report shows that, as of the end of June 2026, the bank's non-performing loan (NPL) ratio was 1.05%, unchanged from the end of the previous year. The corporate loan NPL ratio was 0.87%, and the personal loan NPL ratio was 1.23%, both flat compared to year-end 2025.
Looking at the more forward-looking loan migration rate indicators, the migration rates for both normal loans and special-mention loans have decreased significantly compared to the end of the previous year, indicating overall stable asset quality. Combined with a provision coverage ratio of 219.58%, the bank's risk-absorption capacity remains clearly adequate.
Technology as a Key Growth Driver
Against the backdrop of a generally stable economy, banks achieving revenue and profit growth increasingly rely on technology.
From a financial technology perspective, the bank has focused on building its digital platform and integrated financial platform. By continuously iterating on the capabilities of its digital and integrated financial platforms, it has expanded customer marketing channels and service scope, offering a multi-scenario, multi-ecosystem comprehensive operation service model, and continuously optimizing the customer experience.
As of the end of June, the registered users of the Ping An Pocket Bank App reached 186 million, up 2.1% from the end of the previous year, with monthly active users (MAU) at 36.7084 million. In the first half of the year, the integrated financial platform contributed 55.1% of new wealth management customers, 53.3% of new customer AUM, and 15.1% of new credit card customers.
Investing resources in technology to achieve business gains through technology is a crucial characteristic for a financial institution in this era.
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