Bank of Communications (3328) H1 2026 earnings summary

Executive summary

• Net profit attributable to shareholders rose 4.04% year-over-year to RMB47.87 billion for H1 2026, with net operating income up 6.77% to RMB142.54 billion, and net interest income up 8.62% to RMB92.59 billion.

• Total assets increased 4.58% from end-2025 to RMB16.26 trillion, with loans and advances up 4.01% and deposits up 6.53%.

• The bank maintained a strong capital position, with a capital adequacy ratio of 16.00% and a leverage ratio of 7.12%.

• Subsidiaries and overseas branches contributed 13.98% and 11.92% of group net profit, respectively.

Financial highlights

• Net interest margin improved by 2 bps year-over-year to 1.23%.

• Cost-to-income ratio decreased by 2.47 percentage points to 27.47%.

• Credit impairment losses increased 5.26% year-over-year to RMB34.54 billion.

• Earnings per share fell to RMB0.52 from RMB0.59 year-over-year.

• Cash dividend of RMB0.168 per share proposed, totaling RMB14.85 billion (31% payout ratio).

Outlook and guidance

• The bank will focus on supporting the real economy, optimizing business structure, and enhancing asset quality.

• Plans to maintain high-quality growth by leveraging comprehensive financial licenses and regional strengths, with continued emphasis on the "five priorities" of finance.

• Risk prevention in real estate, local government debt, and inclusive retail business will be prioritized.