Huaxia Bank (600015.SS) reported first-half 2026 operating revenue of CNY 51.31 billion (approximately $7.6 billion), up 12.71% year-on-year and above CNY 50 billion for the first time. Net profit attributable to shareholders of the listed company fell 18.35% to CNY 9.37 billion (approximately $1.4 billion), as credit and other asset impairment losses rose 58.49% to CNY 23.6 billion (approximately $3.5 billion). Loan and advance impairment losses increased 66% to CNY 20.65 billion (approximately $3.1 billion), indicating that the bank used stronger revenue to accelerate provisions against legacy risks. Net interest margin improved 5 basis points to 1.59%, driven by lower funding costs rather than higher asset yields. The bank’s average deposit cost rate fell 34 basis points to 1.34%, helping net interest income rise 13.03% to CNY 34.56 billion (approximately $5.1 billion). Asset quality was mixed: the overall NPL ratio declined to 1.50%, but the personal-loan NPL ratio climbed to 2.85% from 2.11% at end-2025. Rapid balance-sheet growth also pressured capital, with the core Tier 1 capital adequacy ratio falling to 8.84% from 9.38%. The bank’s earnings recovery will depend in part on whether retail credit risk stabilizes in coming quarters.