China Merchants Bank (3968.HK) reported first-half 2026 operating revenue of CNY 178.18 billion ($26.6 billion), up 4.83% year over year, and net profit attributable to shareholders of CNY 76.44 billion ($11.4 billion), up 2.02%. Basic earnings per share were CNY 2.98 ($0.44), while annualized return on average shareholders' equity attributable to shareholders was 13.42%. Net interest income increased 5.60% to CNY 112.02 billion ($16.7 billion), as a 14.41% decline in interest expense more than offset a 2.42% fall in interest income amid lower interest rates. Non-interest income rose 3.56% to CNY 66.16 billion ($9.9 billion), led by wealth management fees and commissions, which surged 26.53% to CNY 16.19 billion ($2.4 billion). The bank's balance sheet expanded, with total assets of CNY 13.78 trillion ($2.1 trillion), loans of CNY 7.45 trillion ($1.1 trillion) and customer deposits of CNY 10.16 trillion ($1.5 trillion) at the end of June. Asset quality remained stable, with a non-performing loan ratio of 0.94% and a provision coverage ratio (loan-loss reserves relative to bad loans) of 385.10%. Analysts highlighted the strength of the bank's retail deposit base and liability-cost management, while identifying weaker wholesale non-interest income and lower investment gains as areas to monitor.