Zhejiang Commercial Bank releases its mid-year performance report: revenue and profit both increased year-on-year.

On August 26, Zhejiang Commercial Bank released its 2026 semi-annual report. The report shows that the bank achieved operating revenue of 33.256 billion yuan and net profit attributable to shareholders of 7.824 billion yuan in the first half of the year, representing a year-on-year increase of 2.05%, achieving positive growth in both revenue and net profit. During the reporting period, Zhejiang Commercial Bank was selected as a systemically important bank for the first time, and its main operating indicators also met external expectations.

The interim report also shows that Zhejiang Commercial Bank's scale and efficiency improved simultaneously in the first half of the year. As of the end of June, total assets reached 3.7 trillion yuan, an increase of 6.17% compared to the end of last year; total liabilities reached 3.48 trillion yuan, an increase of 6.43% compared to the end of last year. Among them, total loans and advances and deposits reached 2.01 trillion yuan and 2.18 trillion yuan respectively, representing increases of 4.55% and 6.55% compared to the end of last year.

Continuing the recovery trend in first-quarter performance

Amid widespread pressure on interest rate spreads across the industry, the bank maintained stable revenue in the first half of the year, with net profit attributable to shareholders increasing by 2.05% year-on-year, continuing the recovery trend from the first quarter. Specifically, net interest income was RMB 22.352 billion, accounting for 67.21% of revenue; non-interest net income was RMB 10.904 billion, a year-on-year increase of 6.88%, indicating a stable business performance.

In addition, in the first half of the year, on the liability side, the average daily balance of demand deposits increased by RMB 55.702 billion year-on-year, a growth of 12.97%, leading to a decline in the deposit interest rate and maintaining a net interest margin of 1.56%. On the revenue side, driven by factors such as the growth in agency business, net fee and commission income increased by 11.51% year-on-year, accounting for 1.7 percentage points more of revenue than the previous year; other non-interest income increased by 5.54%, contributing more than a quarter of operating revenue. The business revenue structure continued to improve.

Stable asset quality

For a bank's long-term performance, asset quality is crucial, and Zhejiang Commercial Bank's performance in this area has been quite stable.

As of the end of June, the bank's non-performing loan ratio remained stable at 1.36%, showing a steady decline for the fourth consecutive year. Regarding capital and liquidity, all regulatory indicators met regulatory requirements.

In addition, as of mid-year, the bank's capital adequacy ratio was 11.55%, its Tier 1 capital adequacy ratio was 9.55%, and its liquidity coverage ratio rose to 259.85%, with overall capital and liquidity indicators operating smoothly.

Continue to work on building a strong customer base

The interim report also shows that in the first half of the year, Zhejiang Commercial Bank achieved growth in both its retail and corporate customer bases. The bank served over 48,000 high-value corporate clients, a 7.7% increase from the beginning of the year; the total number of retail clients exceeded 38 million, with a net increase surpassing the level of the entire previous year.

In addition, by tilting credit resources toward key areas such as science and technology innovation enterprises and inclusive micro and small enterprises, and by relying on digital supply chain services to cover more than 100,000 enterprises in the chain, the growth of customer base can be effectively transformed into the ability to serve the real economy.

Overall, Zhejiang Commercial Bank performed well in its interim report, which is closely related to the bank's adherence to long-termism, its focus on "efficiency first, scale satisfactory" in its operations, and its continuous efforts in areas such as customer base and risk control.

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