In the first half of 2025, China's six major state-owned banks (ICBC, CCB, Agricultural Bank of China, Bank of China, Bank of Communications, and Postal Savings Bank) delivered robust performance results. These institutions demonstrated operational resilience and counter-cyclical capabilities across key metrics including operating revenue, net profit, and asset quality. Despite continued pressure on net interest margins, growth in non-interest income provided crucial support for operating revenue, while asset quality remained stable and risk resistance capabilities were further strengthened, showcasing "ballast stone" operational stability.

The six major state-owned banks achieved combined operating revenue of approximately 1.81 trillion yuan in the first half, representing a year-on-year increase of 2.06%. Bank of China led with a revenue growth rate of 3.76%. In terms of net profit, the six banks collectively realized attributable net profit of approximately 682.524 billion yuan, down 0.13% year-on-year.

Particularly noteworthy is that the asset quality of the six major state-owned banks remained stable overall. Non-performing loan ratios generally maintained low levels, provision coverage ratios remained steady with some increases, and risk resistance capabilities continued to strengthen. Regarding dividends, all six banks maintained a 30% dividend payout ratio, conveying stable return expectations to shareholders. These data collectively paint a clear picture of state-owned banks progressing steadily amid uncertainty.

**Non-Interest Income Emerges as New Growth Engine**

In the first half of 2025, the non-interest income performance of state-owned banks was impressive, becoming a key force supporting stable revenue growth. Against the backdrop of continuously narrowing net interest margins, banks actively expanded intermediate businesses such as wealth management, investment banking, and transaction banking, driving significant growth in non-interest income.

Taking Bank of China as an example, its operating revenue grew 3.76% year-on-year, leading among the six banks. In the first half, Bank of China achieved non-interest income of 114.187 billion yuan, an increase of 23.871 billion yuan, growing 26.43%. Non-interest income's share of operating revenue was 34.71%, up 6.23 percentage points year-on-year.

ICBC also performed excellently in non-interest income. In the first half, it achieved non-interest income of 113.516 billion yuan, an increase of 6.967 billion yuan, growing 6.5%, accounting for 26.6% of operating revenue. Of this, net fee and commission income was 67.020 billion yuan, down 385 million yuan or 0.6%; other non-interest income was 46.496 billion yuan, up 7.352 billion yuan or 18.8%.

ICBC President Liu Jun stated at the earnings conference: "While focusing on income, we look not only at total income but also income quality." He noted that ICBC achieved group revenue of 409.1 billion yuan in the first half, up 1.8% year-on-year, with growth turning from negative to positive, representing the best performance for the same period in nearly three years. Over the past four quarters, three quarters recorded positive quarter-on-quarter revenue growth, signaling stabilization and improvement in revenue growth. Liu emphasized finding "ICBC's certainty answer amid uncertainty," stemming from its strong value creation capability.

CCB's non-interest income in the first half was 107.564 billion yuan, an increase of 17.658 billion yuan from the same period last year, up 19.64%. Non-interest income accounted for 27.28% of operating revenue.

CCB President Zhang Yi stated at the earnings conference that on one hand, net fee and commission income grew 4.02% year-on-year, with steady growth in wealth management, investment banking asset management, and transaction banking revenues. On the other hand, by strengthening market analysis and optimizing investment and trading strategies, other non-interest income grew rapidly.

Agricultural Bank of China's operating revenue was 369.937 billion yuan, up 0.8% year-on-year. The bank continued optimizing its income structure, strengthening development in bank cards and custody businesses. Postal Savings Bank's operating revenue was 179.446 billion yuan, up 1.5% year-on-year, continuously expanding intermediate businesses leveraging network advantages. Bank of Communications' operating revenue was 133.368 billion yuan, up 0.77% year-on-year, driving non-interest income growth through investment banking and wealth management businesses.

**Continuous Asset Quality Optimization Builds Safety Margins**

While maintaining revenue growth, the overall asset quality of state-owned banks remained stable, with risk resistance capabilities further enhanced. The six banks' NPL ratios generally maintained low levels, with provision coverage ratios steady or rising, demonstrating strong risk resistance.

As of the end of the first half of 2025, both ICBC and CCB had NPL ratios of 1.33%, Agricultural Bank of China at 1.28%, Bank of Communications at 1.28%, Bank of China at 1.24%, and Postal Savings Bank at 0.92%. Regarding provision coverage ratios, each bank's risk compensation capability remained adequate. Agricultural Bank of China had the highest provision coverage ratio at 295.00%; Postal Savings Bank at 260.35%; CCB at 239.40%; ICBC at 217.71%; Bank of Communications at 209.56%; and Bank of China at 197.39%. Although some banks' provision coverage ratios declined slightly year-on-year, they remained well above regulatory requirements.

The Zhongtai Securities Research Institute team led by Dai Zhifeng believes that state-owned banks have superior asset quality, with NPL ratios and watch list ratios remaining flat or declining quarter-on-quarter despite already low absolute levels, further improving asset quality. Combined with strengthened capital in Q2, with capital adequacy ratios rising quarter-on-quarter, state-owned banks' risk resistance capabilities have been reinforced.

The solid asset quality of state-owned banks reflects not only their risk management capabilities but also establishes a solid foundation for financial system stability. Under economic downward pressure, good asset quality helps banks maintain steady operations and better support real economy development.

**Stable Dividends Enhance Market Confidence**

While maintaining steady operations, state-owned banks consistently focus on shareholder returns, conveying confidence to investors through reasonable dividend policies. In the first half of 2025, all six banks maintained a 30% dividend payout ratio.

ICBC distributed 1.414 yuan per 10 shares (before tax), with total ordinary share cash dividends of approximately 50.396 billion yuan. CCB distributed cash dividends of 48.605 billion yuan to all ordinary shareholders, with 1.858 yuan per 10 shares (before tax). Agricultural Bank of China planned to distribute total cash dividends of 41.823 billion yuan to ordinary shareholders. Bank of China's ordinary share dividend totaled 35.250 billion yuan (before tax). Bank of Communications distributed total cash dividends of 13.811 billion yuan. Postal Savings Bank distributed a total of 14.772 billion yuan (before tax).

Stable dividend ratios first reflect state-owned banks' attention to shareholder rights as listed companies, providing stable investment returns through continuous cash dividends and enhancing shareholder confidence. Second, amid volatile capital markets, stable dividends signal steady bank operations and sufficient cash flow, helping improve market recognition of bank stocks and attract long-term investors.

From banks' perspective, maintaining stable high dividend payout ratios reflects strong profitability and cash flow management capabilities. Despite slightly pressured overall net profits, the ability to distribute a large proportion of profits as dividends demonstrates banks' confidence in future development and responsibility toward shareholders and investors.

Regarding net interest margins, ICBC Vice President Yao Mingde expects NIM decline to remain an industry commonality in the second half, but the decline magnitude will further narrow.

"Comprehensively, we judge that NIM decline magnitude will gradually narrow," said CCB Chief Financial Officer Sheng Liurong. Looking ahead to the second half, due to faster loan repricing than deposits, under lagged effects of last year's LPR and deposit rate cuts, NIM is expected to face some downward pressure. However, the central bank continuously improves monetary policy frameworks, streamlines interest rate transmission mechanisms, and has made changes in monetary policy tool application. In recent years, while guiding loan rate declines, the central bank emphasized symmetry between asset and liability side rate cuts. Since the first half of this year, rate policy tools have been used more prudently, with greater use of structural monetary policy tools to guide banking industry support for key areas.

Guosen Securities Economic Research Institute's financial team judges that 2025 will be a bottom-building year for China's banking industry, with industry revenue and profit growth expected to turn upward in 2026. Under current circumstances, state-owned banks' steady performance provides valuable certainty to the market.

The first half 2025 reports of state-owned banks have begun reflecting "cycle-resistant" signals. Whether future signals become clearer depends on whether net interest margins can truly stabilize, risks can bottom out, and non-interest income can continue growing, thereby driving profitability into a more stable recovery trajectory.

However, it cannot be ignored that the current global economy still faces numerous uncertainties, and the domestic economy is at a critical transformation and upgrading period. The banking industry, as the core of the financial system, faces more complex challenges. But judging from the trends shown in state-owned banks' half-year reports, operating performance has indeed shown significant marginal improvement.