Chinese state lenders achieve first joint profit and revenue rise since 2022
China's six largest state-owned banks reported simultaneous increases in first-half revenue and net profit for the first time since 2022. Their combined operating income exceeded 2 trillion yuan, with net profit around 712.6 billion yuan. The improvement is attributed to a tentative rebound in net interest margins after two years of compression.
The six lenders—ICBC, CCB, ABC, BOC, Bocom, and PSBC—collectively generated over 2 trillion yuan in operating income, with attributable net profit reaching roughly 712.6 billion yuan. Individual revenue growth ranged from 4 to 11 percent, while profit gains spanned 4 to 6 percent, marking the first synchronized positive results across all six since 2022.
The turnaround stems from a tentative recovery in net interest margins, which had compressed for two straight years, dragging the industry average to a record low near 1.4 percent in the first quarter. CCB led the shift, posting a half-year NIM of 1.37 percent, up slightly from both full-year 2025 and the first quarter. However, analyst Dong Ximiao cautioned that a structural inflection point remains unconfirmed, dependent on broader economic recovery and interest-rate shifts.
This rare synchronized growth could signal early stabilization in China's banking sector, potentially easing concerns about systemic pressure from prolonged margin compression. Borrowers may face a slower pace of further lending-rate cuts if margins firm, while depositors could see modestly better returns. The results may also bolster confidence among investors and international observers watching China's financial health, though sustained improvement likely hinges on broader economic momentum. Smaller banks, lacking the scale of these six, may not share equally in any recovery, potentially widening competitive gaps within the industry.