Hua Xia Bank Co. (600015) investor relations material

Executive summary

• Total assets reached RMB 4,985.35 billion as of June 30, 2026, up 5.23% from year-end 2025, with loans and deposits growing 7.92% and 7.86% respectively.

• Operating income for H1 2026 was RMB 51.31 billion, up 12.71% year-over-year, but net profit attributable to shareholders fell 18.35% to RMB 9.37 billion.

• The bank maintained stable asset quality, with a non-performing loan (NPL) ratio of 1.50%, down 0.05 percentage points from year-end 2025.

• Capital adequacy remained robust: core tier-1 capital adequacy ratio at 8.84%, total capital adequacy ratio at 12.36%.

Financial highlights

• Net interest income rose 13.03% year-over-year to RMB 34.56 billion, driven by loan growth and lower funding costs.

• Non-interest income increased 12.06% to RMB 16.75 billion, with fee and commission income up 6.04%.

• Operating profit declined 18.89% to RMB 12.55 billion, mainly due to a 58.49% surge in credit and asset impairment losses.

• Cost-to-income ratio improved to 25.22%, down 3.79 percentage points year-over-year.

• Basic EPS was RMB 0.53, down from RMB 0.66 in H1 2025.

Outlook and guidance

• The bank expects continued macroeconomic uncertainty and industry competition in H2 2026, but plans to focus on technology finance, green finance, and digital transformation.

• Emphasis will be on optimizing asset-liability structure, expanding low-cost deposits, and enhancing risk management.

• No interim dividend or capital increase from reserves is planned for H1 2026.