China Construction Bank (939) Q2 2024 earnings summary

Executive summary

• Total assets reached RMB 40.29 trillion at end-June 2024, up 5.14% from end-2023, with net profit of RMB 165.04 billion for H1 2024.

• Operating income for H1 2024 was RMB 374.83 billion, down 3.43% year-over-year; net profit declined 1.35% year-over-year.

• Maintained peer-leading core performance indicators: ROA 0.84%, ROE 10.82%, NIM 1.54%.

• Focused on high-quality development, digital transformation, green finance, and inclusive finance.

• Enhanced risk management, ESG integration, and consumer protection, with strong digital and pension finance initiatives.

Financial highlights

• Net profit for H1 2024 was RMB 165.04 billion; operating income RMB 374.83 billion.

• NPL ratio at 1.35%, down from 1.37% at end-2023; provision coverage at 238.75%.

• Net interest margin (NIM) at 1.54%, down from 1.79% year-over-year.

• Cost-to-income ratio at 24.15%, up from 23.72% year-over-year.

• ROE at 10.82%; ROA at 0.84%.

Outlook and guidance

• Management expects China’s economy to maintain recovery momentum in H2 2024, with opportunities in technology, green, inclusive, pension, and digital finance.

• Continued focus on supporting the real economy, improving operating quality, and risk management.

• Plans to maintain stable net interest margin through liability structure optimization.

• Commitment to high-quality growth, risk control, and customer-centric strategies.

• Aims to accelerate technology finance, expand green finance, and enhance digital operations.