Summary of Key Performance
The six major state-owned banks (ICBC, ABC, BOC, CCB, BOCOM, and PSBC) delivered impressive results in the first half of 2026: their combined revenue exceeded 2 trillion yuan, with a net profit of approximately 712.6 billion yuan. All banks achieved positive growth, and the growth rates were generally better than the same period last year. The net interest margin (the key profit margin for banks) stopped declining and stabilized. The total asset size surpassed 231 trillion yuan, an increase of over 11 trillion yuan compared to the beginning of the year. The overall quality of assets has improved, and the total dividends distributed in the first half of the year amounted to nearly 221 billion yuan, 16.3 billion yuan more than last year, with a dividend payout ratio of over 30% for all banks.
Detailed Analysis
1. Accelerated Growth and Enhanced Profitability
The six banks not only earned more in the first half of the year but also did so at a faster pace than the same period last year:
- Revenue: The combined revenue exceeded 2 trillion yuan, an increase of 171.9 billion yuan year-on-year. Among them, ABC and CCB saw double-digit growth (over 10%), and ICBC also experienced growth of over 9%, indicating an increase in their main business revenues (such as loans and financial services).
- Profit: The total profit was 712.6 billion yuan, an increase of 30.1 billion yuan year-on-year. Except for ICBC's profit growth rate of 3.32%, the other five banks all had growth rates of over 4%, with BOC leading at 5.11%, followed by ABC and PSBC. In short, the banks performed well in both expanding their revenue and reducing costs, resulting in more stable profit growth than revenue growth.
2. Stabilized Net Interest Margin and Improving Profit Margin
The net interest margin is a key indicator of a bank's profitability. For example, if you deposit 100 yuan in a bank and the bank pays you 2% interest, and then the bank lends out that money for 5% interest, the 3% difference is the net interest margin. This margin had been declining, but it has now stabilized:
- Compared to the first quarter of this year, ICBC and BOCOM's margins remained unchanged, while ABC, CCB, and BOC each increased by 0.02% and 0.01% respectively. Only PSBC saw a slight decrease of 0.02%.
- Compared to the entire of last year, all five banks either saw an increase or a stabilization in their margins, with BOCOM and CCB each increasing by 0.03%. Although PSBC's margin decreased by 0.03%, its 1.63% is still the highest among the six banks. This indicates that the banks' interest margin is no longer declining and is starting to recover, which is a positive sign.
3. Continued Expansion of Asset Size
As of the end of June, the total assets of the six banks amounted to 231.72 trillion yuan, an increase of 11 trillion yuan from the beginning of the year (equivalent to an increase of nearly 2 trillion yuan per month):
- ICBC's total assets exceeded 57 trillion yuan, making it the largest among the six banks. The asset growth rates of PSBC and ICBC were over 6%, indicating that they are expanding their business the fastest (for example, by issuing more loans and providing more financial services). The growth rates of the other banks were also over 3.7%, showing an overall expansion in their business operations.
4. Improving Asset Quality and Better Control of Bad Debt Risks
The non-performing loan ratio (the proportion of loans that cannot be recovered) is an important indicator of a bank's risk. The lower this ratio, the better:
- Compared to the first quarter, the non-performing loan ratios of ICBC and ABC each decreased by 0.02% to 1.29%, while BOCOM, ABC, and CCB remained unchanged. Only PSBC saw a slight increase of 0.01%, but its non-performing loan ratio of 1% is still the lowest among the six banks.
- The provision coverage ratio (the amount of bad debt reserves prepared by the banks) increased slightly for ICBC, ABC, and BOCOM, while it decreased slightly for the other three banks, but all are still above the safe level. This indicates that the banks are reducing their bad debt risks and improving their risk management capabilities.
5. Increased Dividends and Higher Returns for Shareholders
The total dividends distributed by the six banks in the first half of the year amounted to nearly 221 billion yuan, 16.3 billion yuan more than last year, with a dividend payout ratio of over 30% (meaning that more than 30% of the profits were distributed to shareholders).
- Specifically:
- CCB will distribute 2.01 yuan per 10 shares (so, if you hold 100 shares, you will receive 20.1 yuan).
- BOCOM will distribute 1.68 yuan per 10 shares.
- PSBC will distribute 1.33 yuan per 10 shares.
- ICBC will distribute 1.511 yuan per 10 shares.
- ABC will distribute 1.297 yuan per 10 shares.
- BOC will distribute 1.19 yuan per 10 shares.
For shareholders of these banks, this means they will receive higher dividends this year compared to last year, providing a more substantial return.
Overall, the six banks have shown steady progress in the first half of the year: improved profitability, better risk control, and increased shareholder returns, which are important supports for a stable economic environment. For individual investors, these bank stocks offer stable dividends and relatively low risks, making them a good investment option.