According to China Daily, February 12, 2026
Early 2025 earnings indicators suggest that China’s banking sector is undergoing a structural transformation, moving beyond pure balance-sheet expansion toward higher-quality, sustainable growth.
Preliminary results from 11 A-share listed banks show that most lenders reported simultaneous revenue and profit growth, highlighting the sector’s strengthening role in supporting the real economy.
All 11 banks reported net profit growth attributable to shareholders, with four achieving double-digit gains. Bank of Qingdao, a joint-stock city commercial bank, led the pack with a 21.7% year-on-year rise in net profit.
Operating income growth was similarly robust. Ten banks posted year-on-year revenue gains, with Bank of Nanjing increasing 10.5%, followed by Bank of Ningbo (8.0%) and Bank of Qingdao (8.0%). China CITIC Bank recorded a slight decline in operating income, the only exception.
Analysts attribute this steady profit performance to several factors:
Stabilizing net interest income from a narrowing decline in net interest margins.
Recovery in market sentiment and improved intermediary business income despite earlier fee pressures.
Strong asset quality, which has kept credit costs under control.
Industrial Bank highlighted that it is aligning with China’s new development model, pursuing high-quality growth while fostering innovative financial services to support emerging industries. Shanghai Pudong Development Bank (SPD Bank) emphasized that credit allocation toward strategic sectors and regions has contributed to both qualitative and quantitative improvements in its portfolio.
Lou Feipeng, a researcher at the Postal Savings Bank of China, noted: “China’s long-term economic fundamentals remain positive. The real economy’s resilience provides ample growth space for the banking sector.”
Looking ahead, analysts expect the banking industry to continue focusing on supporting the real economy in alignment with China’s 15th Five-Year Plan (2026–2030). Key priorities include:
Optimizing financial resource allocation
Increasing credit support for strategic sectors and underdeveloped regions
Deepening financial innovation and improving service precision
Maintaining risk controls while pursuing sustainable growth
Dai Zhifeng, a banking analyst at Zhongtai Securities, predicts that 2026 will see more pronounced front-loading of credit issuance compared with 2025. High-quality regional banks are expected to sustain stronger year-on-year growth, while net interest margins may narrow at a slower pace. With stable interest income, operating revenue and profits across the sector are likely to remain steady.
Implications for investors: China’s banking sector is showing resilience amid structural shifts, with strategic alignment toward high-quality growth and robust support for the real economy. For global investors, this trend indicates opportunities in Chinese regional banks and financial instruments tied to emerging sectors and infrastructure development.