For the first half of 2026, the combined operating revenue of all 42 A-share listed banks reached approximately 3.14 trillion yuan, marking a 7.42% year-on-year increase. Their net profit attributable to shareholders hit about 1.13 trillion yuan, up 2.96%.
While 36 banks reported revenue growth and 36 saw profit increases, only 32 achieved positive growth in both metrics. On the surface, this seems like a stable performance, but a closer look at the extremes of each indicator reveals a clear K-shaped divergence: state-owned giants are seeing a broad recovery after three years, joint-stock banks are still under pressure, city commercial banks are emerging as growth engines, and rural commercial banks face headwinds in their revenue. These four tiers, moving at different paces, highlight a structural transformation driven by stabilizing interest margins, weakened retail performance, and the rise of tech-finance.
Top Earners: ICBC Retains the Crown
Industrial and Commercial Bank of China (ICBC) leads all listed banks with a net profit of 173.682 billion yuan, followed by China Construction Bank at 169.564 billion yuan and Agricultural Bank of China at 146.381 billion yuan. The six largest state-owned banks collectively generated 712.598 billion yuan in net profit, a 4.41% increase, accounting for over 60% of the industry's total. For the first time since 2022, they all achieved simultaneous growth in both revenue and profit.
Fastest Earnings Growth: Bank of Qingdao Leads
In terms of profit growth, Bank of Qingdao leads the industry with an 18.08% surge in net profit. It is followed by Qilu Bank (16.06%), Bank of Ningbo (12.12%), and Changshu Rural Commercial Bank (10.64%). City commercial banks are the primary growth drivers this season. Xiamen Bank leads in revenue growth at 19.60%, while Bank of Ningbo posted double-digit growth in both revenue and profit. Notably, the top two banks for net profit growth are both city commercial banks from Shandong province: Bank of Qingdao and Qilu Bank.
Biggest Revenue Declines: Zijin Bank's 7.94% Drop
Beyond the 36 banks with rising revenue, six saw declines: Zijin Rural Commercial Bank (-7.94%), Qingdao Rural Commercial Bank (-7.57%), Zhangjiagang Rural Commercial Bank (-5.21%), China Everbright Bank (-4.32%), Ruifeng Bank (-1.96%), and Industrial Bank (-0.25%). Four of the ten rural commercial banks experienced revenue declines, making them the most affected group. Everbright Bank's particularly weak performance, with revenue down 4.32% and net profit plunging 24.01%, marks the steepest profit drop in the industry this season. This was driven by a dramatic 74.82% fall in investment income (from 10.377 billion yuan to 2.613 billion yuan) and a 31.25% increase in credit impairment losses to 20.886 billion yuan. A combination of a high base from last year's investment income and a proactive acceleration of bad debt clearing created this 24.01% net profit slump.
Thickest Interest Margin: Changshu Bank's 2.48%
The net interest margin (NIM) is a key indicator of lending profitability. In Q2 2026, the average NIM for commercial banks was 1.41%, up 1 basis point quarter-over-quarter—the first sequential quarterly rise since Q1 2022. Among the 42 listed banks, Changshu Rural Commercial Bank stands out with a NIM of 2.48%, the only one above 2%. It's followed by Bank of Xi'an (1.99%), Bank of Changsha (1.84%), China Merchants Bank (1.83%), and Ping An Bank (1.80%). Changshu's high margin is a result of its focus on small and micro enterprises in Jiangsu's counties, giving it strong pricing power on loans. In contrast, major banks like ICBC (1.29%), ABC (1.28%), Bank of China (1.27%), and Bank of Communications (1.23%) have lower margins, while Postal Savings Bank of China achieved a more favorable 1.63% thanks to its low-cost retail deposit base. However, a cautionary note: 23 of the 42 banks still saw their NIM decline year-on-year. The first increase in four years isn't due to higher pricing but from cost savings, driven by the repricing of high-interest, long-term deposits that matured. The average cost of interest-bearing liabilities fell by over 34 basis points. This benefit is expected to fade as the repricing effect is fully realized next year.
Strongest NIM Recovery: Bank of Xi'an's +29BP Jump
While Changshu has the thickest NIM, Bank of Xi'an has the fastest recovery. Its NIM rose to 1.99%, a significant year-on-year increase of 29 basis points, far ahead of its peers. Others followed with Bank of Guiyang (+14BP to 1.67%), China Minsheng Bank (+8BP), Chongqing Bank (+7BP), and Bank of Suzhou (+7BP). Bank of Xi'an's performance is a prime example of how regional vitality and improved liability structure can boost a mid-tier city commercial bank into the upper echelon.
Best Asset Quality: Bank of Chengdu's 0.68% NPL Ratio
By the end of June 2026, the average NPL ratio for commercial banks was 1.52%, up just 1BP from Q1. But the disparity among the 42 listed banks is stark. Bank of Chengdu boasts the lowest NPL ratio at 0.68%, followed by Xiamen Bank (0.73%), Wuxi Rural Commercial Bank (0.76%), Hangzhou Bank (0.76%), Bank of Ningbo (0.76%), and Bank of Jiangsu (0.81%). Bank of Chengdu also has the highest provision coverage ratio at 426.06%, making it a double champion. Bank of Ningbo has kept its NPL ratio below 1% for 19 consecutive years.
Most Asset Quality Pressure: Bank of Guiyang and Bank of Lanzhou
The highest NPL ratios belong to Bank of Guiyang and Bank of Lanzhou, both at 1.78%, closely followed by Qingdao Rural Commercial Bank (1.74%) and Bank of Xi'an (1.76%). A more troubling trend is the rising default risk in retail loans, with consumer loans, business operation loans, and credit cards showing the most exposure. For instance, ICBC's personal loan NPL ratio rose to 1.77%, up 19 basis points from the end of last year. Bank of Communications' retail loan NPL ratio is at 2.02%, up 44 basis points. China Merchants Bank saw its retail loan non-performing balance increase by 3.248 billion yuan to 42.832 billion yuan.
Largest Tech-Finance Exposure: ICBC Surpasses 3 Trillion Yuan
Tech-finance is the most significant new growth area in this reporting season. Among the state-owned banks, ICBC's loans to tech companies surpassed 3 trillion yuan. Bank of China saw tech loans account for over one-third of its corporate lending. Agricultural Bank of China grew its tech-enterprise loans by 24%, while China Construction Bank achieved double-digit growth in this segment. Among joint-stock banks, Industrial Bank leads with a tech-finance balance of 2.4 trillion yuan and a loan balance of 1.24 trillion yuan, while Shanghai Pudong Development Bank has 1.13 trillion yuan in tech-finance loans. For city commercial banks, Bank of Beijing leads with a balance of 521.619 billion yuan, while Qilu Bank's tech loans grew 25.86% from the end of last year to 65.546 billion yuan.
Strongest Wealth Management Growth: Bank of Ningbo Up 53.90%
With narrowing NIMs, wealth management is becoming a crucial focus for bank transformation. ICBC led the market with net fee and commission income of 69.2 billion yuan in the first half, a 3.3% increase, largely driven by its wealth management segment. China Merchants Bank reported 24.704 billion yuan in wealth management income, up 18.44%, with a 26.53% rise in related fee income to 16.192 billion yuan. Sub-items included 5.076 billion yuan from delegated wealth products (+10.56%), 3.935 billion yuan from fund distribution (+61.40%), and 2.247 billion yuan from trust agency fees (+43.76%). However, Bank of Ningbo is the growth champion. Its net fee and commission income surged 53.90% to 4.317 billion yuan, now making up 10.41% of its total revenue, driven by robust wealth distribution and asset management fees.
Most Generous Interim Dividends: Big Six to Distribute Nearly 221 Billion Yuan
This interim season saw listed banks deliver substantial dividend proposals. By the end of August, the six largest state-owned banks, along with several joint-stock and regional banks, had announced interim dividend plans totaling over 250 billion yuan. For the first time, the six majors raised their interim payout ratio from 30% to 31%, with a combined payout of nearly 221 billion yuan, about 16.3 billion yuan more than last year. This breaks down to ICBC proposing 53.853 billion yuan, CCB 52.582 billion yuan, ABC 45.393 billion yuan, Bank of China 38.343 billion yuan, Postal Savings Bank 15.973 billion yuan, and Bank of Communications 14.845 billion yuan. Among city commercial banks, per-share dividends were more generous: Bank of Chengdu leads with 4.89 yuan per 10 shares, followed by Hangzhou Bank (4.60 yuan) and Bank of Ningbo (4.00 yuan per 10 shares).
Final Analysis: A Stable Yet Divergent Picture
The 2026 interim results present a picture of overall stability with significant structural divergence. Interest margins saw their first quarterly sequential increase in four years, largely due to reduced liability costs. However, this cost-saving benefit is diminishing, and the real challenge lies in asset-side pricing power and risk management.
Three trends are particularly clear. First, the gap between banks is widening: the six major banks are back on track with dual growth, city commercial banks like Bank of Ningbo and Bank of Qingdao are strong performers, but some joint-stock banks are still struggling with revenue declines and asset quality issues. Second, the interest margin recovery is uneven: Changshu leads in absolute terms, while Bank of Xi'an leads in the pace of recovery, but 23 banks still saw their NIM shrink year-on-year. Third, the shift to new business drivers is accelerating, with tech-finance emerging as a key growth area and wealth management proving its resilience as a potential second engine. At the same time, the rise in retail risk, higher NPL ratios for some, and constrained revenue are reminders that the sector's recovery is not a smooth ride, and divergence will likely remain the norm.
This list of ten extremes isn't just about who's on top. It's a tool for understanding where each bank stands on the axes of interest rate cycles, regional economies, and strategic transformation. As the first half of 2026 concludes, the keys to the second half may lie in the speed of tech-finance investment, the strength of wealth management client relationships, and the resolve shown in clearing bad debts.
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