China's top six state banks grow revenue and profit for first time since 2022
China's largest financial institutions reported concurrent increases in operating income and net profit, marking a rare recovery after two years of decline.
China's six biggest state-owned banks recorded their first simultaneous rise in first-half revenue and net profit since 2022. Industrial and Commercial Bank of China (ICBC), China Construction Bank (CCB), Agricultural Bank of China (ABC), Bank of China (BOC), Bank of Communications, and Postal Savings Bank of China together generated more than 2 trillion yuan, or $297 billion, in operating income for the period. Combined net profit attributable to shareholders amounted to about 712.6 billion yuan. Revenue grew between 4 and 11 percent across the six lenders, while net profit rose 4 to 6 percent. This improvement was underpinned by a tentative rebound in net interest margin after two years of steady compression that dragged the industry average down to a record low of nearly 1.4 percent in the first quarter. CCB led the turn, posting a half-year NIM of 1.37 percent. Dong Ximiao of Merchants Union Consumer Finance noted these findings in the interim results released last week.
