Industrial Bank Co.,Ltd. published its 2026 semi-annual report on the evening of August 27. As of the end of June, the group's total assets reached 11.46 trillion yuan, up 3.31% from the end of the prior year, with operating revenue of 110.17 billion yuan and net profit attributable to shareholders of 41.13 billion yuan. The non-performing loan ratio stood at 1.08%, with a provision coverage ratio of 225.67%, indicating overall stable asset quality.
As 2026 marks the inaugural year of the 15th Five-Year Plan, the bank has steadily advanced its new five-year strategy. Guided by digitalization, green development, internationalization, comprehensive services, and ecosystem building, it has deepened its focus on industrial finance and continued to polish its four flagship credentials in technology finance, green finance, wealth banking, and investment banking. The bank is committed to building a first-class value-driven institution, and both its issuer rating and viability rating were upgraded by international agency Fitch.
Deepening Industrial Finance and Optimizing the Balance Sheet Structure
In the first half, the bank closely aligned with national policy directions and regional industrial plans, concentrating on the development of a modern industrial system. It integrated industrial finance with the "five key articles" of finance and its four flagship credentials, leveraging services to key industries and premium clients to drive continuous optimization of its asset and liability structure. On the asset side, the bank advanced the construction of industrial mapping along the entire value chain of key sectors, deepened relationship-based management of client clusters, and increased asset allocation in areas aligned with the "five key articles," steering the asset portfolio toward new and higher-quality opportunities. By the end of June, customer loan balances totaled 6.16 trillion yuan, an increase of 215.6 billion yuan from the start of the year. Notably, industrial finance loans reached 2.63 trillion yuan, up 155.2 billion yuan during the period, serving as a primary driver of loan growth. Furthermore, loans tied to "technology plus industry" and "green plus industry" reached 1.09 trillion yuan and 771.6 billion yuan respectively, reinforcing the technological and environmental foundations of industrial finance.
Driven by this integrated approach, the bank's technology finance and green finance loan balances reached 1.24 trillion yuan and 1.21 trillion yuan respectively, maintaining the top position among joint-stock banks, with growth of 12.98% and 9.63% from the start of the year, both outpacing overall loan growth. On the liability side, the bank anchored its "networking project" around industries, deepening client management, refining product offerings, and expanding ecosystem scenarios to boost settlement deposits, thereby stabilizing scale and lowering costs. By the end of June, customer deposits had risen to 6.23 trillion yuan, with the interest expense ratio down 34 basis points year-on-year. Specifically, corporate banking saw the ratio decline 35 basis points through enhanced tiered client strategies and focus on key scenarios; retail banking achieved a 33 basis point reduction by optimizing its operating model and concentrating on payroll, acquiring, wealth, and payment settlement client segments; and interbank operations lowered the ratio by 28 basis points through transaction and clearing collaborations that enhanced the stability of low-cost settlement deposits. As a result of these ongoing balance sheet optimizations, net interest income for the first half totaled 72.80 billion yuan, with the year-on-year decline narrowing by 0.84 percentage points compared to the first quarter, while the net interest margin stood at 1.60%, with its year-on-year decline narrowing by 3 basis points from the first quarter.
Refining Revenue Mix and Elevating Fee Income Contribution
In the current low-interest-rate and low-margin environment, the bank has advanced the integrated development of its investment banking, asset management, and wealth management businesses. This approach facilitates the alignment of industrial financing needs with client asset allocation demands, thereby boosting fee income. In the first half, fee and commission net income reached 14.20 billion yuan, an increase of 8.61% year-on-year, with growth accelerating by 1.16 percentage points from the first quarter. The share of fee income in total revenue rose to 12.89%. Among the components, payment and settlement income, wealth sales income, and custody income grew by 18%, 16%, and 11% year-on-year respectively.
In investment banking, the bank leveraged its "commercial banking plus investment banking" advantage to serve comprehensive industrial financing needs. By the end of June, the total financing portfolio (FPA) reached 5.19 trillion yuan, up 6.14% from the start of the year. Its scale of debt financing instruments for non-financial enterprises maintained the second position in the market, while merger and acquisition financing and syndicated loan balances ranked first and second respectively among joint-stock banks. The investment banking arm also supplied 207.05 billion yuan of high-quality assets to the wealth management segment, a year-on-year increase of 18.25%.
In asset management, the bank coordinated the improvement of its product system, enhanced the professional capabilities of its subsidiaries, and advanced business transformation. By the end of June, the group's asset management scale reached 3.65 trillion yuan, with transition products amounting to 651.6 billion yuan, up 37% from the start of the year. In wealth management, the bank continuously enriched its product shelf for client asset allocation and expanded sales channels. Retail financial assets across the group totaled 6.08 trillion yuan (including third-party custody market value) by the end of June, up 3.80% from the beginning of the year. Corporate wealth asset management reached 368.66 billion yuan, up 4.56%, and wealth sales via the "bank-to-bank platform" exceeded 1.1 trillion yuan, growing 16.30% during the period. In custody, the bank sustained its synergies between investment and sales, accelerating the construction of a custody ecosystem. Custody assets under management for asset management products reached 11.85 trillion yuan, with public fund custody at 3.19 trillion yuan, ranking first in incremental growth across the industry and ascending to third place nationally in total scale.
Managing Risk Proactively to Maintain Asset Quality Stability
During the first half, the bank enhanced the forward-looking and proactive nature of its risk management to support high-quality business development. On one front, it refined credit policies for third- and fourth-tier sub-industries, aligned with the construction of a modern industrial system, to improve policy coverage and precision. This enabled industrial finance to evolve from "single-point breakthroughs" to "full-chain outreach." Concurrently, the bank optimized its authorization framework, focusing on differentiation across regions, industries, clients, and products. It strengthened authorization support for key industries, core entities, and mainstream businesses tied to industrial finance, and introduced tailored authorization and credit schemes on a "one city, one policy" basis, directing credit resources toward advantageous regions, key clients, and quality projects. By the end of June, loan balances in the bank's branches within the "two cities and three regions" (Beijing, Shanghai, the Yangtze River Delta, the Greater Bay Area, and Fujian) grew 5.21% from the end of the prior year. Loans to key regional industries (the top ten industries by regional industrial revenue) increased 8.9% during the period, and the average deviation of the mainstream industry loan portfolio narrowed to 12.72% from the end of last year, reflecting a closer alignment between the asset structure and regional economic structures.
While strengthening source control, the bank also advanced risk prevention and resolution in key areas, aiming to extract value from risk management. In the first half, new non-performing asset formation decreased by 3.6 billion yuan year-on-year, and recoveries from written-off cases reached 6.1 billion yuan. Specifically, in corporate banking, new NPL formation declined, with new NPLs in real estate continuing to fall and no new NPLs from local government financing platforms. In retail banking, new NPL formation increased but overall risk remained manageable. During the period, the bank applied more prudent risk classification criteria to certain credit card clients with negotiated installment arrangements, fully exposing potential risks to reduce future accumulation. Forward-looking risk indicators for credit cards improved, with average monthly collections decreasing 19% year-on-year and the collection rate falling 0.5 percentage points, signaling gradually easing pressure from new overdue loans.
Building a Smart Bank to Drive Transformation Momentum
Digitalization stands as the bank's foremost strategy for the 15th Five-Year Plan period and serves as the fundamental engine for business transformation. In the first half, the bank adhered to its "technology-driven development" approach, advancing its "agility battle, experience battle, and security battle" initiatives. It fully implemented its "artificial intelligence plus" action plan, accelerating the construction of "Smart Industrial Bank" to build a leading intelligent bank and enhance the quality and efficiency of financial services. According to available information, the average project delivery cycle was further compressed by 15% from the start of the year through these initiatives. Using the Net Promoter Score (NPS) as a key "North Star metric," the mobile banking app error rate dropped by 70%, and online wealth product sales grew 25% year-on-year, establishing a positive cycle where experience optimization drives business growth. The bank also strengthened its security governance and operational mechanisms, continuously enhancing its security assurance capabilities.
Building on this foundation, the bank continued to unlock data value by deepening coordination across mobile banking, enterprise WeChat, and remote operations channels, improving digital operations. In the first half, it deployed over 20,000 marketing strategies, reaching nearly 600 million client touchpoints, which drove comprehensive financial asset growth more than three times higher year-on-year. Mobile banking active clients reached 73.70 million, enterprise WeChat served 16.21 million clients, and the remote operations center reached 52.05 million touchpoints. The "five major online platforms"—Industrial Steward, Industrial Life, Qian Da Zhang Gui, Industrial Inclusive Finance, and the bank-to-bank platform—maintained steady growth across core metrics. Through digital operations, the bank continuously solidified its client base, upgrading 406,700 retail foundational clients to platinum level and above.
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