China Merchants Bank H1 Profit Rises 2.06% to RMB90.74 Billion

China Merchants Bank (CM BANK) announced a profit before tax of RMB90.737 billion for the first half of 2026, representing a 2.06% increase year-on-year. The results reflect a period of economic growth in China, offset by narrowing net interest margins across the banking sector.

Net operating income for the period grew by 4.83% year-on-year to RMB178.135 billion, while net profit attributable to shareholders reached RMB76.445 billion, a 2.02% increase compared to the same period last year. Net interest income rose by 5.60% to RMB112.022 billion, but was partially offset by a 3.56% increase in net non-interest income to RMB66.113 billion. The bank's annualised return on average assets (ROAA) was 1.14%, down 0.07 percentage points year-on-year, and the annualised return on average equity (ROAE) was 13.42%, down 0.43 percentage points.

Total assets increased by 5.47% to RMB13,785.280 billion. Loans and advances to customers grew by 2.69% to RMB7,453.033 billion, while total deposits from customers increased by 3.32% to RMB10,162.498 billion. The non-performing loan ratio remained stable at 0.94%, while the allowance coverage ratio decreased to 385.10%. Corporate loans saw a 9.08% increase, reaching RMB3,507.630 billion, while retail loans decreased by 1.08% to RMB3,680.028 billion, influenced by adjustments in the real estate market and slower consumption growth.

The bank reported a total of 231 million retail customers as of June 30, 2026, a 3.13% increase year-on-year. The bank’s balance sheet also shows significant financial investments at fair value through profit or loss amounting to RMB678.092 billion. While the bank focused on capturing structural trading opportunities, it also implemented hedging strategies to mitigate market fluctuations. The results come amid a broader trend of narrowing net interest margins for Chinese banks, driven by a low-interest-rate cycle, increased direct financing, and household deleveraging.