Bank of Communications Co., Ltd. (03328) has released its interim results for 2026, showing net operating income of RMB 142.540 billion, an increase of 6.77% year-on-year. Net profit attributable to shareholders of the parent company reached RMB 47.874 billion, representing a growth of 4.04% compared to the same period last year, with earnings per share of RMB 0.52. The improvement in operational quality and efficiency is evident across the group's performance metrics.
During the reporting period, the group's net profit attributable to the parent company and net operating income grew by 4.04% and 6.77% year-on-year, respectively, with both growth rates accelerating from the first quarter. The net interest margin stood at 1.23%, up 2 basis points year-on-year, marking a stabilization and recovery that drove net interest income to continue its positive trajectory, growing by 8.62% year-on-year on top of the previous year's growth. Subsidiaries and overseas operations have formed a diversified support structure, with their contribution to the group's net profit attributable to the parent rising by 3.67 percentage points compared to the previous year.
The business growth highlights distinctive strengths. The bank has enhanced the implementation effectiveness of fiscal and financial support policies and structural monetary policy tools, tailoring its efforts to advance the "five major areas" of finance according to local conditions. It has been actively implementing key national regional strategies, with customer loan balances in the Beijing-Tianjin-Hebei region, the Yangtze River Delta, and the Guangdong-Hong Kong-Macao Greater Bay Area rising by 0.16 percentage points from the end of the previous year to 54.15%. Cross-border services have been strengthened to actively support enterprises in their global expansion, with cross-border trade finance balances increasing by 70.83% from the end of the previous year.
Resource allocation has become more efficient. Through meticulous management of financial resources, the bank achieved a 2.08% year-on-year reduction in operating costs while maintaining high growth in net operating income, with the cost-to-income ratio decreasing by 2.47 percentage points year-on-year. The bank has deepened its application of artificial intelligence technology, implementing more than 420 AI application scenarios that have produced positive results in cross-border finance, inclusive finance, risk prevention and control, and anti-telecom fraud operations.
Risk resilience remains robust. The bank has strengthened its comprehensive risk management framework and steadily advanced risk prevention efforts in key areas, maintaining a firm commitment to preventing systemic risks. As of the end of the reporting period, the group's non-performing loan ratio stood at 1.30%, with a provision coverage ratio of 203.80%. Total assets reached RMB 16.26 trillion, up 4.58% from the end of the previous year. Customer loans (excluding accrued interest and before impairment provisions) amounted to RMB 9.49 trillion, an increase of RMB 366.102 billion or 4.01% from the end of the previous year, while customer deposits totaled RMB 9.92 trillion, up RMB 607.621 billion or 6.53%.
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