Banking Boom: Chinese Banks Surge to Record Highs on Strong Semi‑Annual Results

On the final trading day of August, while the broader A‑share and Hong Kong indices slipped, the banking sector defied the trend and rallied to new heights. Bank of China’s A‑share closed at a fresh all‑time peak of 6.38 yuan, up more than 3 %, while its H‑share hit HK$5.86, up over 4 % and the highest level since the stock went public.

The lift was not isolated. Shares of China CITIC Bank, Bank of Beijing, Qilu Bank, Postal Savings Bank of China and several other banks all posted gains, underscoring the sector’s resilience.

The catalyst for this rally was the surprisingly upbeat semi‑annual report released by Bank of China on August 28. In the first half of the year the bank generated operating revenue of 3,569.03 billion yuan, a 8.48 % year‑on‑year rise, and net profit attributable to shareholders of 1,235.94 billion yuan, up 5.10 %. Among the six major state‑owned banks, this profit growth rate was the highest.

Net interest income climbed 10.2 % YoY, and the net interest margin edged up to 1.27 %, a 1‑basis‑point improvement. The modest lift in the margin reflects a broader industry trend of recovering interest‑spread earnings as liability costs stabilize.

On the same day, the six major banks – Industrial and Commercial Bank of China, Agricultural Bank of China, Bank of China, China Construction Bank, Bank of Communications and Postal Savings Bank of China – all disclosed their first‑half results. Together they reported operating revenue exceeding 2 trillion yuan and net profit of about 712.6 billion yuan. Revenue growth across the group ranged from 4 % to 11 %, while net‑profit growth was between 4 % and 6 %. This marks the first time since 2022 that the group achieved double‑digit growth in both revenue and profit.

Across the wider industry, 42 A‑share listed banks posted total operating revenue of roughly 3.14 trillion yuan in the first half, up 7.42 % YoY – a 6‑percentage‑point jump in growth rate compared with the prior year. Total net profit was about 1.13 trillion yuan, up 2.96 %. Of those banks, 32 recorded double‑digit growth in both revenue and profit.

The data paint a picture of a banking sector that has not only recovered from the tightening of net‑interest margins but is now driving a robust earnings expansion that is propelling share prices to new all‑time highs.