Industrial and Commercial Bank of China (1398) investor relations material

Executive summary

• Net profit for H1 2026 reached RMB176,475 million, up 4.5% year-over-year, with operating revenue rising 9.1% to RMB446,163 million and net interest income up 8.8%.

• Total assets grew 6.7% from year-end 2025 to RMB57.07 trillion, with loans at nearly RMB32 trillion and deposits at RMB39 trillion.

• The bank maintained strong asset quality, with an NPL ratio of 1.29% and allowance to NPLs at 217.58%.

• Interim dividend payout ratio raised to 31%, totaling about RMB53.85 billion, with yields of 4.22% (A shares) and 5.36% (H shares).

• Strategic transformation, digitalization, and AI-driven innovation are driving new growth and operational efficiency.

Financial highlights

• Net interest income was RMB341,237 million (+8.8% YoY); net fee and commission income reached RMB69,235 million (+3.3% YoY); non-interest income totaled RMB104,926 million (+9.9% YoY).

• Net interest margin was 1.29%, and net interest spread was 1.17%.

• Operating expenses increased 2.6%, with a cost-to-income ratio of 23.70%.

• Overseas assets exceeded $500 billion, up 11% YoY; pre-tax profit from overseas operations up 15% YoY.

• Impairment losses on assets rose 22.2% to RMB127,756 million.

Outlook and guidance

• Management expects continued revenue and net profit growth for the full year, with margin stabilization as deposit repricing effects wane.

• Focus remains on optimizing asset-liability structure, reducing liability costs, and supporting high-quality economic development.

• Strategic priorities include digital transformation, AI-driven innovation, technology finance, green finance, and inclusive finance.

• Non-interest income expected to benefit from capital market recovery and technology sector investments.

• Continued emphasis on supporting major national strategies and comprehensive financial solutions.