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.

Caixin News, March 24 (Reporter Zou Juntao): The latest annual reports of China CITIC Bank and Ping An Bank show that both have increased their dividend payout ratios for fiscal year 2025 compared with the previous year.

As the first batch of bank annual reports, the signals above have drawn market attention to industry dividend trends. Some market views hold that, influenced by the clear requirements in the “Report on the Implementation of the Central and Local Budget in 2025 and the Draft Central and Local Budget for 2026,” including “increasing the proportion for collecting state-owned capital returns,” as well as relevant statements in the “15th Five-Year Plan” outline, it is expected that this year banks directly under central and local government finances, as well as state-owned central enterprise-controlled banks, are likely to improve their dividend levels.

However, Caixin News reporters learned during interviews that multiple listed bank representatives said they have not heard of any such requirements. At present, the primary consideration in dividend strategy remains “maintaining continuous and stable” practices, and banks continue to optimize dividend mechanisms to balance shareholder returns with the need for internal capital accumulation.

Industry research professionals told reporters that increasing dividends is not only a specific response to policy directives, but also a positive signal in addressing the market’s expectations for dividend returns. “As for whether it will become an industry-wide trend, more bank annual report data will be needed to verify.”

The dividend payout ratios of the first batch of disclosed annual-report banks have all increased

As the listed banks that disclosed their 2025 annual reports in the first batch this year, the changes in the dividend arrangements at CITIC and Ping An have drawn market attention.

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

In its annual report, China CITIC Bank also stated that it expects both the dividend amount and the dividend proportion for 2025 to hit historical highs.

Another joint-stock bank, Ping An Bank, also shows an increase in its dividend payout ratio. According to the latest annual report disclosure from Ping An Bank, for 2025 the bank expects to distribute a total of CNY 11.566 billion in cash dividends, accounting for 28.83% of net profit attributable to the bank’s ordinary shareholders in the consolidated statements, and 27.13% of net profit attributable to shareholders in the consolidated statements.

According to Ping An Bank’s 2024 annual report, the dividend proportion figures for that year were 28.32% and 26.51%, respectively. In comparison, for 2025 they increased by 0.51 and 0.62 percentage points, respectively. However, due to the scale of net profit, Ping An Bank’s total cash dividends for 2024 were CNY 11.799 billion.

Will it become an industry trend?

Some market views believe that under the policy guidance to “increase the proportion for collecting state-owned capital returns,” it is expected that listed banks with state-owned capital control will generally see further upward movement in their dividend levels.

By raising their dividend payout ratios at the same time, do the two banks—CITIC and Ping An—reflect that relevant policy requirements already exist within the industry? In response to the above topic, a representative from a listed city commercial bank told Caixin News reporter that they have “not heard of any further requirements.” Currently, the dividend policy remains “continuous and stable,” taking into account the company’s overall development needs and shareholders’ demands. Another representative from a listed bank said the company has actively responded to regulatory guidance in recent years by increasing the frequency and level of dividends, continuously optimizing its dividend mechanism to address concerns from the market and shareholders.

On March 23, management teams of China CITIC Bank and Ping An Bank also responded to the dividend topic. Zhang Qing, Secretary to the Board at China CITIC Bank, said that the bank will further optimize its dividend mechanism to stabilize investors’ return expectations by continuously improving dividend levels and carrying out interim dividends. Ping An Bank’s management stated that in the future it will do its “best with what it can, acting within its means” in terms of dividends, striving to create long-term, sustainable value returns for shareholders.

Yu Fenghui, Senior Research Fellow at Pangu Think Tank, said in an interview with Caixin News reporter that “this phenomenon is not isolated; it reflects that, against the backdrop of strong operating performance achieved by some banks, they are proactively responding to the market’s expectations for dividend returns.”

Yu Fenghui analyzed that for state-owned capital-controlled banks to increase dividends is an important action to implement the above policy guidance. It helps demonstrate the social responsibility and economic benefits of state-owned capital, and it also aligns with the strategic deployment to deepen the reform of state-owned enterprises. However, regarding whether the relevant requirements can further drive state-owned capital-controlled banks to raise dividends, he said it still needs to be comprehensively considered in light of the banks’ own capital adequacy, profitability, and business development needs.

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责任编辑：Qin Yi