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China Construction Bank (CCB) earns most of its operating income from net interest income: interest received on loans and investments minus interest paid on deposits and other funding. Fees and other non-interest income add to that total, but expenses and credit impairment losses affect how much ultimately becomes profit. In the six months ended 30 June 2026, CCB reported higher net interest and non-interest income, while net profit grew more slowly than operating income. Investors assessing whether that growth can last should examine margins and balance growth alongside credit costs, capital, returns, and the status of any proposed dividend.
How does China Construction Bank make money?
Net interest income is the central driver
For a bank, net interest income is the difference between interest income and interest expense. It depends on both the spread earned on loans and investments and the size and mix of the balances generating that spread. Funding costs matter too: interest paid on deposits and other funding reduces what remains from interest earned.
CCB’s audited 2025 statement of accounts reported RMB 1,153.262 billion of interest income and RMB 580.488 billion of interest expense, leaving RMB 572.774 billion of net interest income for the year, compared with RMB 589.882 billion in 2024. CCB’s 2025 annual report reported a 1.34% net interest margin for the full year. The amount of net interest income and the margin answer related but different questions: income reflects the overall result, while the margin is a measure of the spread on interest-earning activity.
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CCB also earns fees and commissions, as well as income reported in other non-interest categories. For full-year 2025, the audited accounts reported RMB 110.307 billion in net fee and commission income, RMB 3.933 billion in net trading gain, RMB 17.068 billion in net gain arising from investment securities, and RMB 17.593 billion in net gain on derecognition of amortised-cost financial assets. These are distinct income-statement lines; securities and derecognition gains should not automatically be treated as equivalent to recurring fees or interest income.
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For full-year 2025, CCB’s annual report said net fee and commission income increased 5.13%. In the first half of 2026, the bank attributed fee growth mainly to wealth management and consumer finance products and stronger comprehensive service capabilities. Those are the bank’s explanations, not a guarantee that the same growth rate or contribution will continue.
What did CCB report for the first half of 2026?
The figures below are CCB-reported results for the six months ended 30 June 2026, except balance-sheet amounts and ratios explicitly measured at that date. The return measures are annualized as stated in the interim-results release.
| Measure | CCB-reported result |
|---|---|
| Net interest income | RMB 310.958 billion, up 8.46% year over year |
| Net non-interest income | RMB 115.375 billion, up 16.31% year over year |
| Net fee and commission income | RMB 64.289 billion |
| Net interest margin | 1.37%, up 3 basis points year over year and 1 basis point from the first quarter |
| Operating income | RMB 426.333 billion, up 10.48% year over year |
| Net profit | RMB 171.677 billion, up 5.56% year over year |
| Cost-to-income ratio | 22.17% for the interim period |
| Net loans | RMB 28.44 trillion at 30 June 2026, up 5.62% from year-end 2025 |
| Financial investments | RMB 13.99 trillion at 30 June 2026, up 8.48% from year-end 2025 |
| Customer deposits | RMB 31.82 trillion at 30 June 2026, up 3.19% from year-end 2025 |
| Deposit interest rate | 1.11%, down 29 basis points year over year, as reported by CCB |
| Non-performing loan (NPL) ratio | 1.29% at 30 June 2026, down 0.02 percentage points from year-end 2025 |
| Allowance-to-NPL ratio | 238.69% at 30 June 2026, up 5.54 points from year-end 2025 |
| Capital adequacy ratio | 19.42% at 30 June 2026 |
| Core tier-1 capital adequacy ratio | 14.24% at 30 June 2026 |
| Annualized return on assets | 0.74% for the first half of 2026 |
| Weighted average return on net assets | 9.52% for the first half of 2026 |
CCB reported that current deposits made up more than 40% of customer deposits at 30 June 2026. The table combines six-month income and return measures with balances and ratios at a date; those bases should not be confused when making comparisons.
Why can revenue growth outpace profit growth?
Operating income is not the same as net profit. Expenses, credit impairment losses, taxes, and other statement items affect the amount left after revenue is recorded. In the first half of 2026, CCB’s reported operating income rose 10.48% year over year, while net profit rose 5.56%.
The annual figures illustrate why credit costs deserve separate attention. CCB’s audited 2025 accounts reported operating income of RMB 740.871 billion, expenses of RMB 227.225 billion, credit impairment losses of RMB 133.317 billion, and net profit of RMB 339.790 billion. Credit impairment losses were RMB 120.700 billion in 2024. These lines do not by themselves provide a complete bridge from operating income to net profit, but they show that higher revenue alone does not establish an equal increase in earnings.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.What should investors check to judge whether profit growth is durable?
1. Read margin, balances, and funding costs together
Track net interest income and net interest margin alongside growth in loans, investments, and deposits. A bank can earn more interest income as balances grow even if its margin changes little; conversely, margin pressure can constrain the income generated by a larger book. Deposit costs and deposit mix help explain funding pressure. CCB’s reported first-half 2026 net interest margin was 1.37%, while net loans, financial investments, and customer deposits grew at different rates from year-end 2025. These figures describe the period; they do not establish that the same balance growth or margin will persist.
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2. Look past the headline NPL ratio to credit costs
An NPL ratio is a snapshot of loans classified as non-performing under the bank’s reporting definitions. The allowance-to-NPL ratio compares allowances with reported NPLs; it is not a forecast that future losses will be low. Consider both ratios with credit impairment losses and disclosures about overdue or restructured exposures and loan categories.
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For context, CCB’s 2025 annual report gave an NPL ratio of 1.31% and an allowance-to-NPL ratio of 233.15% at year-end. Its audited 2025 accounts reported RMB 133.317 billion in credit impairment losses, compared with RMB 120.700 billion in 2024. The first-half 2026 NPL and allowance-to-NPL ratios improved from year-end 2025, but that does not, by itself, settle what future credit costs will be.
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3. Consider capital alongside returns and balance-sheet growth
Capital ratios indicate the capital held relative to risk-weighted exposures; return measures help show the earnings generated on assets and equity. CCB reported capital adequacy of 19.42% and core tier-1 capital adequacy of 14.24% at 30 June 2026. Its 2025 annual report gave year-end ratios of 19.69% and 14.63%, respectively.
CCB reported annualized first-half 2026 return on assets of 0.74% and weighted average return on net assets of 9.52%. Its full-year 2025 annual report gave 0.79% and 10.04%, respectively. The interim returns are annualized and cover a different period from the full-year measures, so they are not a like-for-like comparison. Investors can assess the measures alongside risk-weighted asset growth, retained profit, distributions, and changes in the balance sheet.
4. Separate recurring income from other reported gains
Net interest income and fees are different earnings streams, and non-interest income itself contains distinct components. In the 2025 audited accounts, trading gains, investment-securities gains, and gains on derecognition of amortised-cost assets were reported separately from net fee and commission income. Check which lines contributed to growth and whether a gain appears to be a repeatable source of income before treating it as a basis for future earnings.
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5. Check dividend status, not just the proposal
CCB’s 2026 interim-results release said the board proposed a cash dividend of RMB 2.010 per 10 common shares, totaling about RMB 52.582 billion, with a stated payout ratio of 31.0%, compared with 30.0% in 2025. The proposal was to be submitted to a shareholders’ meeting for deliberation. It is a proposed distribution as described in that release; subsequent approval and payment announcements are needed to establish its final status.
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How should investors compare the figures?
- Compare the same reporting period and accounting basis. Full-year 2025 values and six-month 2026 values cover different spans.
- Keep period income separate from date-specific balance-sheet amounts and ratios.
- Check whether return figures are annualized and whether a ratio uses the same definition in each period or across banks.
- Attribute company-reported results and explanations to CCB; the figures describe reported performance, not a forecast or a judgment about the attractiveness of its shares.
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