The first batch of A-share banks' annual reports show increased dividend payout ratios. Will this become a trend? Industry insiders: No requirements have been heard of; dividend strategies mainly focus on stability.

Ask AI · How do banks balance capital accumulation when increasing dividends?

Financial Associated Press, March 24 (Reporter Zou Juntao) The latest annual reports from China CITIC Bank and Ping An Bank show that their dividend rates for the year 2025 have increased compared to the previous year.

As one of the first banks to release annual reports, this signal has drawn market attention to the industry’s dividend trends. Some market opinions suggest that, influenced by the explicit requirement in the report on “the execution of the central and local budgets for 2025 and the draft budgets for 2026” to “increase the proportion of state-owned capital revenue collection,” as well as relevant statements in the “14th Five-Year Plan,” it is expected that banks directly under central and local finance, as well as centrally controlled state-owned banks, may increase their dividend levels this year.

However, Financial Associated Press reporters learned during interviews that several individuals from listed banks stated they had not heard of any relevant requirements. Currently, the main consideration for dividend strategies remains “maintaining continuity and stability,” while continuing to optimize the dividend mechanism to balance shareholder returns and the need for internal capital accumulation.

Industry researchers have analyzed that increasing dividends is not only a specific measure in response to policy guidance but also a positive signal responding to the market’s expectations for dividend returns. “As for whether this will form an overall trend in the industry, more data from bank annual reports is needed for verification.”

First batch of disclosed annual report banks all increased their dividend rates

As the first batch of listed banks to disclose their 2025 annual reports, the changes in dividend arrangements at China CITIC Bank and Ping An Bank have attracted market attention.

According to the latest annual report from China CITIC Bank, the bank plans to raise its cash dividend to 21.2 billion yuan for 2025, accounting for 31.75% of the net profit attributable to ordinary shareholders. Compared to the bank’s dividend rate of 30.5% for 2024, this is an increase of 1.25 percentage points.

China CITIC Bank also stated in the annual report that it expects its dividend amount and ratio for 2025 to reach historical highs.

Another joint-stock bank, Ping An Bank, also showed an increase in its dividend rate. According to the latest annual report from Ping An Bank, it is expected to distribute a total cash dividend of 11.566 billion yuan in 2025, accounting for 28.83% of the net profit attributable to the bank’s ordinary shareholders in the consolidated financial statements, and 27.13% of the net profit attributable to the bank’s shareholders in the consolidated financial statements.

According to Ping An Bank’s 2024 annual report, the dividend ratio data for that year were 28.32% and 26.51%, respectively. In contrast, for 2025, these ratios have increased by 0.51 and 0.62 percentage points. However, due to the scale of net profit, Ping An Bank’s total cash dividend distribution for 2024 was 11.799 billion yuan.

Will this become an industry trend?

Some market opinions suggest that under the policy guidance to “increase the proportion of state-owned capital revenue collection,” it is expected that listed banks controlled by state-owned assets may generally experience a further rise in dividend levels.

Does the simultaneous increase in dividend ratios by China CITIC Bank and Ping An Bank reflect existing policy requirements within the industry? Regarding this topic, an individual from a listed city commercial bank told Financial Associated Press reporters that they “have not heard of any further requirements,” and that they currently maintain a “continuously stable” dividend policy, comprehensively considering the overall needs of company development and shareholder demands. Another individual from a listed bank stated that the company has actively responded to regulatory guidance in recent years by increasing the frequency and level of dividends and continuously optimizing the dividend mechanism to address market and shareholder concerns.

On March 23, the management of China CITIC Bank and Ping An Bank also responded to the dividend topic. Zhang Qing, Secretary of the Board of China CITIC Bank, stated that they would further optimize the dividend mechanism and stabilize investor return expectations through continuous increases in dividend levels and the implementation of interim dividends. The management of Ping An Bank stated that in the future, they will “do their best and act within their capacity” regarding dividends, striving to create long-term and sustainable value returns for shareholders.

Yu Fenghui, a senior researcher at Pangoal Institution, told Financial Associated Press reporters that “this phenomenon is not isolated; rather, it reflects a positive response to the market’s expectations for dividend returns against the backdrop of some banks achieving good operating performance.”

Yu Fenghui analyzed that increasing dividends at state-controlled banks is an important action to implement the aforementioned policy guidance, helping to highlight the social responsibility and economic benefits of state-owned capital, and aligning with the strategic deployment of deepening the reform of state-owned enterprises. However, regarding whether the relevant requirements can promote state-controlled banks to further raise dividends, he stated that it still needs to be considered comprehensively with the banks’ own capital adequacy, profitability, and business development needs.

(Financial Associated Press reporter Zou Juntao)