Chinese State-Owned Banks Post Coordinated Profit Recovery

Chinese state-owned banks profits recovered simultaneously in the first half for the first time since 2022 as revenue increased and net interest margins showed early signs of stabilisation.

ICBC, China Construction Bank, Agricultural Bank of China, Bank of China, Bank of Communications and Postal Savings Bank of China generated more than RMB2tr (USD297bn) in combined revenue and around RMB712.6bn in attributable profit.

Revenue increased by between 4% and 11%, while profit rose by around 4% to 6%.

Lower deposit costs helped net interest margins improve at five of the six lenders, although analysts warned that falling asset yields could constrain further recovery.

Non-performing loan ratios remained between 1% and 1.3%.

The banks also announced interim dividends exceeding RMB220bn, lifting their combined cash payout ratio to roughly 31% and reinforcing their importance as income-generating holdings for investors.