At the mid-year 2026 results briefing held on August 17, Ping An Bank Co.,Ltd. Secretary of the Party Committee and President, Ji Guangheng, along with the management team, delivered a comprehensive overview of the bank's first-half operating performance and future outlook. The session also provided a platform to address questions from domestic and international investors and members of the press.
In his opening remarks, Ji noted that 2026 marks the inaugural year of the "15th Five-Year Plan." While external geopolitical conflicts and uncertainties have increased, and challenges persist domestically in the form of low interest rate spreads and risks in real estate, local government debt, and retail operations, the economy demonstrated resilience in the first half, operating within a reasonable range with a shift towards new drivers and improved structure. The financial system remained generally stable, supported by coordinated macro policies, optimized asset structures, orderly risk resolution, and marginal profit improvements. Combined with the ongoing technological industrial revolution, the banking sector is presented with a significant opportunity for high-quality development.
During the first half, Ping An Bank Co.,Ltd. maintained a trajectory of steady growth across its various business lines. Ji structured his presentation around three key themes: the semi-annual performance, progress in operational management, and strategic measures for the next phase aimed at "returning to growth."
Stable Financial Performance with Tangible Reform Outcomes
Ji stated that with the continued deepening of strategic reforms, the bank achieved stable financial results in the first half of 2026, with the benefits of these reforms becoming increasingly evident. Firstly, profitability is on the mend with both revenue and profit returning to positive growth. The bank reported first-half revenue of RMB 70.62 billion, up 1.8% year-on-year, and net profit of RMB 25.70 billion, up 3.3% year-on-year, with the growth rate expanding by 0.3 percentage points compared to the first quarter. Secondly, total assets grew steadily with continued structural optimization. As of the end of June, total assets reached RMB 6.0 trillion, up 1.7% from the beginning of the year. Total loans grew by 1.8% during the same period, while bill discounting was reduced by 17.2%. Thirdly, the net interest margin stabilized and rebounded, driven by a continued decline in liability costs. The net interest margin for the first half was 1.80%, an increase of 2 basis points from the full-year 2025 figure, with the deposit cost rate at 1.38%, down 27 basis points from last year's average. Fourthly, asset quality remained broadly stable with robust risk mitigation capabilities. As of the end of June, the non-performing loan (NPL) ratio was 1.05%, flat compared to the start of the year. The NPL formation rate in the first half was 1.15%, a decrease of 49 basis points year-on-year. The provision coverage ratio stood at 219.6%, roughly stable from the beginning of the year, and the credit cost was 1.10%, down 33 basis points year-on-year. Finally, prudent capital management kept capital adequacy ratios stable. As of June 30, the core tier 1 capital adequacy ratio, tier 1 capital adequacy ratio, and capital adequacy ratio were 9.32%, 10.95%, and 13.14%, respectively, all meeting regulatory requirements.
Deepening Management to Solidify the Foundation for Growth
The positive trends in operational metrics are underpinned by a steady enhancement in management quality and efficiency. Ji explained that Ping An Bank Co.,Ltd. adheres to the leadership of Party building and its integration with business operations, promoting a correct view of performance in all practices. The results show that revenue and profit growth have turned positive, and core indicators are in line with expectations, laying a solid foundation and building momentum for long-term sustainable development.
Regarding Party building, the bank remains committed to the unified leadership of the Party Central Committee over financial work. It has embedded Party leadership into all facets of corporate governance and operational management. In the first half, the bank aligned itself with the "15th Five-Year Plan" requirements by focusing on the "five major articles" of finance. As of the end of June, technology loans reached RMB 293.542 billion, up 8.7% from the start of the year. Green loans totaled RMB 273.416 billion, an increase of 2.6%. Inclusive loans to small and micro enterprises reached RMB 476.864 billion across 857,600 customers. Agricultural-related loans stood at RMB 130.916 billion, up 12.8%. The bank is also enhancing its service to the real economy by increasing credit support in key areas such as technological innovation, inclusive finance, advanced manufacturing, and green development. It continues to support people's livelihoods by boosting consumption, implementing interest subsidy policies, and enriching its wealth management product offerings to meet diverse investment needs.
On business transformation, the bank is steadfast in its strategy of "strengthening retail, refining corporate banking, and specializing in interbank business," focusing on building differentiated competitive advantages. In the retail segment, the bank is stabilizing its foundation. Retail loan scale remained roughly flat from the start of the year, with efforts focused on adjusting structure and enhancing risk-based pricing. Credit card acquisition has returned to growth with improved new customer quality, leveraging distinctive benefits like emergency rescue, health management, and pet care to rebuild competitiveness. The auto finance business is actively promoting new energy vehicle loans while maintaining steady growth in used car loans. On the wealth management side, the contribution to fee income has increased, with high-quality deposits growing steadily. Leveraging the group's comprehensive financial strengths, the bank is enriching client asset allocation, with the proportion of high-value AUM from public and private offerings increasing. Agency personal insurance income and agency fund income grew by 51.2% and 45.1% year-on-year, respectively. In corporate banking, the focus has shifted from reactive growth to proactive, refined development around new quality productive forces. As of the end of June, corporate general loans grew by 5.2% from the start of the year, with continued asset structure optimization and further reduction in bill assets. The bank is consolidating its strengths in supply chain, cross-border, M&A, and syndicated loans while strategically expanding into sectors like AI computing power, semiconductors, and new energy. The interbank business is leveraging its bond investment and trading strengths for diversified asset allocation, contributing steadily to revenue. Internal management is also being enhanced through optimized assessment systems, a focus on quality and efficiency, and a commitment to "anti-involution" in finance by closing inefficient outlets and maintaining a healthy cost-to-income ratio. The bank is building a professional team with a focus on both capability and integrity, emphasizing talent development, succession planning, and strict adherence to compliance and consumer protection standards.
In terms of risk prevention, the bank is diligently implementing requirements to prevent risks, strengthen supervision, and promote high-quality development. This involves refining risk management strategies for retail businesses like personal business loans, consumer loans, and credit cards through a full-cycle, normalized control approach. The bank is also steadily implementing risk control measures in the real estate sector, with forward-looking assessment and enhanced fund supervision. As of the end of June, the corporate real estate NPL ratio was 2.15%, down 7 basis points from the start of the year, with manageable risk exposure for major clients. The bank continues to resolve local government debt risks by adhering strictly to the red line of no new hidden debt, with overall risk in these areas deemed controllable.
Five Pillars Defining the Path Back to Growth
Addressing the market's focus on "returning to growth," Ji emphasized that while the goals set at the beginning of the year have been supported by first-half achievements, there remains a gap between current results and the demands of high-quality, sustainable profitability. He clarified that the growth pursued by Ping An Bank Co.,Ltd. is not a simple expansion of scale or reckless risk-taking, but rather quality, sustainable profit growth that can withstand economic cycles. The next phase will focus on five key pillars to refine the bank's operational capabilities.
The first pillar is pursuing growth aligned with national strategy by seizing the opportunities of the "15th Five-Year Plan," focusing on financing for tech enterprises' R&D and commercialization, and supporting consumption expansion. The second is pursuing balanced growth between income and risk by establishing differentiated pricing mechanisms on the asset side, defending the deposit base, and enhancing risk management in key areas like real estate, local government debt, retail credit, and bond investment. The third is pursuing growth driven by improved per-capita efficiency through cost reduction, organizational optimization, and breaking down internal silos to foster integrated operations. The fourth is pursuing growth empowered by technology by strengthening core capabilities in data, computing power, and algorithms, integrating AI and large models into business scenarios, and enhancing digital employees, intelligent trading systems, and risk control. The fifth is pursuing growth with a continuously strengthened compliance foundation by rigorously implementing regulatory requirements, enhancing internal accountability, and improving consumer protection and emergency response capabilities.
In closing, Ji stated that 2026 is a pivotal year for the bank's reform and transformation. Ping An Bank Co.,Ltd. will continue on its path of high-quality, sustainable development, deepening comprehensive operations and building differentiated advantages. Furthermore, the bank places high importance on investor returns. Having previously formulated a valuation enhancement plan to increase the stability, timeliness, and predictability of dividends, the interim dividend will maintain a reasonable payout ratio to share the operating results with investors.
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