What happened
On August 28, the six major state-owned commercial banks — ICBC, ABC, BOC, CCB, BOCOM and PSBC — released their 2026 interim reports. Combined attributable net profit reached about 712.6 billion yuan, averaging roughly 3.9 billion yuan per day, with all six banks posting year-on-year growth. Total revenue came in at approximately 1.97 trillion yuan, just shy of the 2-trillion-yuan mark.
The banks also announced interim dividend plans totaling about 220.989 billion yuan, an increase of 7.98% from the prior-year interim period, with the collective payout ratio raised to 31%. Revenue leaders included ICBC at 446.163 billion yuan (+9.1%), CCB at 426.333 billion yuan (+10.48%), ABC at 411.122 billion yuan (+11.2%) and BOC at 356.903 billion yuan (+8.48%). On net profit, ICBC ranked first at 173.682 billion yuan (+3.3%), followed by CCB at 169.564 billion yuan (+4.62%), while BOC recorded the fastest growth at 5.1%.
Net interest margins broadly stabilized. Regulatory data show the commercial banking sector's Q2 NIM at 1.41%, up 1 basis point quarter-on-quarter — the first quarterly rebound since Q1 2022 — and large state-owned banks' NIM rose 2 basis points to 1.31%. Among the six, CCB stood out with NIM of 1.37%, up 1 bp from Q1 and 3 bp from 2025, making it the only big bank with two consecutive quarters of NIM recovery. NPL ratios at end-June were 1.29% for ICBC and CCB, 1.25% for ABC, 1.22% for BOC, 1.3% for BOCOM and 1% for PSBC.
Why it matters
The results underline the 'ballast' role of the six major banks amid downward NIM pressure and retail credit headwinds. All six achieved simultaneous growth in revenue and profit, while NIM collectively stabilized — a rarity in recent years — and dividends were increased, signaling confidence in earnings sustainability.
The earnings mix is shifting, with liability cost reduction and non-interest income playing a larger role than scale expansion and pricing power. CCB's interest expense fell more than 9% year-on-year, driving interest net income up 8.46% to 310.958 billion yuan, illustrating how proactive balance-sheet management is offsetting margin pressures.
The same day, regulators issued a policy to extend the maximum personal housing loan term from 30 to 40 years. With housing loans shrinking, how this reform stabilizes the scale and duration of that asset class will directly affect the pace of retail recovery for the big banks in the coming years.
Key facts
Six major state-owned banks' combined H1 attributable net profit reached about 712.6 billion yuan, all positive year-on-year.
Interim dividends total about 220.989 billion yuan, up 7.98% from the prior year, with the collective payout ratio raised to 31%.
Q2 commercial bank NIM was 1.41%, up 1 bp quarter-on-quarter, the first quarterly rebound since Q1 2022.
CCB's NIM was 1.37%, up 1 bp from Q1 and 3 bp from 2025, the only big bank with two consecutive quarters of recovery.
What to watch next
Executives signaled cautious optimism for the second half. ICBC's president noted that the supportive effect of repricing dividends on NIM will gradually weaken as maturing fixed deposits decline and new-old product spreads narrow, but the bank aims to sustain NIM stabilization through active asset-liability management.
CCB's president expressed confidence in maintaining a leading NIM among peers, while ABC's president expects liability cost decline to continue. BOC's president said the bank will focus on tech finance, global advantages, digital empowerment and strict risk control to safeguard against systemic risks.
The new real estate credit reform, including the extension of mortgage loan terms to 40 years and a main-bank system for development loans, will be closely watched for its impact on housing loan asset quality and the retail business of the six major banks.
Sources
