China Construction Bank (939) Q2 2025 earnings summary

Executive summary

• Operating income for H1 2025 rose 2.95% year-over-year to RMB385.91 billion, while net profit declined 1.45% to RMB162.64 billion; total assets increased 9.52% to RMB44.43 trillion.

• Net interest income fell 3.16% due to lower loan yields and market rates, but net fee and commission income increased 4.02% to RMB65.22 billion.

• Focused on high-quality growth, supporting real economy, technology, green, inclusive, and pension finance.

• Maintained industry-leading customer base and service quality, with 777 million personal customers and multiple awards.

• The Board proposed an interim cash dividend of RMB1.858 per ten shares, maintaining a payout ratio of 30%.

Financial highlights

• Gross loans to customers grew 6.2% to RMB27.4 trillion; financial investments rose 10% to RMB11.77 trillion.

• Net profit: RMB162.64 billion, down 1.45% year-over-year; operating income: RMB385.91 billion, up 2.95%.

• Net interest margin dropped to 1.40% from 1.54% a year ago; annualised ROA at 0.77%, ROE at 10.08%.

• Cost-to-income ratio improved to 23.72%, outperforming peers.

• NPL ratio was 1.33%, down 0.01 percentage points year-over-year; provision coverage rose to 239.40%.

Outlook and guidance

• Management expects stable profit growth for the full year, with continued focus on high-quality development, risk management, and asset quality control.

• NIM pressure expected to persist due to rate cuts, but proactive management aims to maintain industry-leading levels.

• Will strengthen financial support for new industrialisation, implement interest subsidy policies, and expand new growth drivers.