Despite ranking first in net profit growth among listed banks in the first three quarters, Bank of Qingdao has yet to confirm whether it will issue interim dividends by year-end. Notably, its dividend payout ratio has declined annually, with the total dividend amount remaining unchanged for four consecutive years.
Among 42 A-share listed banks, 32 have announced interim (including Q3) dividend plans—eight more than in 2024—with 20 already completing payouts. However, Bank of Qingdao stands out as the only bank without such plans, despite its 15.54% YoY net profit growth in Q1-Q3 2025, the highest among peers.
In its 2025 interim report, the bank stated it would "propose interim cash dividends based on operational conditions," mirroring its 2024 language, which ultimately led to no action. With no updates since, its 46,000 investors may face another disappointment.
**"Fishing-Style" Dividend Policy?** Bank of Qingdao reported Q1-Q3 revenue of RMB 11.013 billion (+5.03% YoY) and net profit of RMB 3.992 billion (+15.54% YoY), topping industry growth charts. Its NPL ratio improved to 1.1% (down 0.04 pp from 2024), while loan provision coverage rose to 269.97% (+28.65 pp).
Despite strong metrics, the bank has been tight on dividends. While peers increasingly adopt interim payouts, Bank of Qingdao’s 2024 and 2025 interim reports identically pledged dividends "if conditions permit," with no follow-through. Investor inquiries in July and September 2025 were met with vague responses about "balancing shareholder returns and long-term capital needs."
**Shrinking Payouts, Fixed Amounts** The bank’s dividend payout ratio dropped from 31.85% in 2021 to 21.83% in 2024. Remarkably, its annual dividend amount stayed fixed at RMB 931,256,755.84 from 2021–2024, even as profits grew.
**Capital Pressure at Play** The restraint stems from rising capital demands. From 2020–2025 Q3, its loan book expanded at a CAGR of 11.3%, driving risk-weighted assets up 9.18% YoY to RMB 451.133 billion by Q3 2025. Core Tier 1 capital adequacy fell to 8.75%, lagging regional peers Qilu Bank (11.49%) and Qingdao Rural Commercial Bank (13.67%).
To bolster capital, parent company Qingdao Guoxin Group plans to increase its stake to 19.99%, becoming the largest shareholder. Meanwhile, the bank has aggressively raised loan loss provisions, with coverage hitting 269.97% in Q3 2025—well above industry averages.
As regulatory requirements tighten, Bank of Qingdao’s dividend hesitancy reflects its focus on capital preservation and risk resilience over short-term shareholder returns.
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