Industrial & Commercial Bank of China (ICBC), the world’s largest lender by assets, reported a 3.3% rise in first-half net income to 173.68 billion yuan (US$25.8 billion) in 2026 [1, 2, 3]. ICBC’s net interest margin held steady at 1.29% at the end of June, nearly unchanged from 1.29%-1.30% at the end of March [1, 2, 3].
China’s five largest banks saw profit growth ranging from 3% to 5% in the first half of 2026. Bank of China led with a 5.1% increase, followed by Agricultural Bank of China at 4.9%, China Construction Bank at 4.6%, and Bank of Communications at 4% profit growth. Bank of Communications’ results marked its highest growth since 2023 [1, 3].
The broader commercial banking sector experienced its first quarterly net interest margin gain since 2022, rising to 1.41% in Q2 from 1.40% in Q1 2026 [1, 3]. The margin improvement reflected easing pressure from lower funding costs as older, higher-yield deposits matured and new funding was repriced at reduced rates [1, 3].
The sector’s non-performing loan (NPL) ratio stood at 1.52% at the end of June, with a total NPL balance of 3.7 trillion yuan [1]. ICBC’s NPL ratio was lower, reported at 1.29% by one source [2]. Analysts noted that smaller banks remain more exposed to asset risks amid economic sluggishness compared with the larger, more risk-averse lenders [3].
Elaine Xu, Director at Fitch Ratings, said, "We do not expect margins to improve much in the near term, given the relatively low-rate environment and weak domestic consumer demand." Nicholas Zhu, a Moody’s banking analyst, added, "Asset risks would rise as more creditworthy consumers refrain from increasing leverage but less creditworthy ones remain as active borrowers." [3]
The People’s Bank of China announced in early August it would maintain ample liquidity and encourage banks to support credit supply and financial services for private enterprises and small- and medium-sized enterprises [1].
ICBC and other major banks released these results today, August 28, confirming a modest recovery in profit and margin performance amid ongoing economic challenges [1, 2, 3].
