China Merchants Bank Reports 2.06% Profit Increase

China Merchants Bank (CMB) reported a 2.06% year-on-year increase in profit before tax to RMB90.737 billion for the first half of 2026, according to its interim report filed on September 23rd. The results reflect a period of steady, albeit narrowing, profitability within a Chinese banking sector receiving significant state support.

The bank’s net operating income grew by 4.83% year-on-year, reaching RMB178.135 billion. This growth was driven by a 5.60% increase in net interest income to RMB112.022 billion, and a 3.56% rise in net non-interest income to RMB66.113 billion. Net profit attributable to shareholders increased by 2.02% year-on-year to RMB76.445 billion. Despite these gains, the bank’s annualized return on average assets (ROAA) and return on average equity (ROAE) saw slight declines, falling to 1.14% and 13.42% respectively.

Total assets increased by 5.47% year-on-year to RMB13,785.280 billion, while total loans and advances to customers grew by 2.69% to RMB7,453.033 billion. Total liabilities also saw a 5.45% increase, reaching RMB12,431.979 billion. Customer deposits rose by 3.32% to RMB10,162.498 billion. The filing details a strategic focus on value creation and coordinated development, with initiatives aimed at internationalization and differentiation, though metrics to assess these transformations are not provided.

The report acknowledges the challenging macroeconomic environment, including a low-interest-rate cycle, a shift towards direct financing, and insufficient credit demand, all contributing to narrowed net interest margins across the industry. While the bank reports generally stable asset quality, it notes increasing risk pressure in retail loans, a factor currently weighing on banks operating in the Chinese economy.