With the full release of the 2025 annual reports for China's six major state-owned banks, their annual dividend distributions have been finalized. ICBC, ABC, BOC, CCB, BANKCOMM, and PSBC collectively distributed cash dividends totaling 427.424 billion yuan for the full year. Maintaining a stable dividend payout ratio of 30% or higher, they have solidified their role as the primary dividend contributors in the A-share market through substantial cash returns.
Individual investors often choose bank stocks for their high dividends and low valuations, aiming to receive dividend income and participate in IPO subscriptions. One retail investor shared that her portfolio primarily consists of major state-owned banks, held for over three years. She views bank stocks as long-term holdings where short-term price fluctuations are less concerning, emphasizing the reliability of annual dividend payments. Reinvesting those dividends gradually increases share holdings, leading to satisfactory long-term returns.
This preference reflects broader market confidence in the stable operational foundation of the major state-owned banks. In 2025, these six banks collectively achieved growth in net profit attributable to shareholders, reaching 1.42 trillion yuan, which equates to average daily earnings exceeding 3.9 billion yuan. This robust profitability provides solid support for their high and substantial cash dividend distributions.
Analysts note that the ability of listed banks to consistently increase dividend payouts is fundamentally supported by steady and solid operational performance. In turn, sustained significant cash dividends effectively enhance shareholder returns, bolstering investor confidence and improving the holding experience.
Regarding specific dividend distributions, ICBC led with a total annual payout of 110.593 billion yuan, distributing 3.103 yuan per 10 shares (before tax). CCB followed with 101.684 billion yuan in total dividends, allocating 3.887 yuan per 10 shares. ABC distributed 87.321 billion yuan, paying 2.495 yuan per 10 shares. BOC, BANKCOMM, and PSBC paid dividends of 72.917 billion yuan, 28.692 billion yuan, and 26.217 billion yuan respectively, with per-share distributions of 2.263 yuan, 3.247 yuan, and 2.183 yuan per 10 shares (all before tax).
In terms of dividend payout ratios, all six major banks maintained stable ratios at or above 30%. BANKCOMM's ratio reached 32.3%, slightly higher than its peers, while the other five banks maintained ratios around 30%.
During recent earnings calls, BANKCOMM's leadership emphasized the bank's consistent focus on shareholder returns, noting a cumulative cash dividend distribution of 123.9 billion yuan to shareholders during the 14th Five-Year Plan period. The dividend for the second half of 2025 represents 32.3% of the net profit attributable to ordinary shareholders, marking the 14th consecutive year the payout ratio has exceeded 30%.
ICBC's management indicated that dividend policies would be dynamically adjusted based on market conditions. Should market expectations call for an increase in the payout ratio to support the sustainable health of the capital markets, ICBC, as a market bellwether, would consider leading such adjustments to foster a healthier market development.
Industry experts highlight that the substantial dividend distributions from the six major banks demonstrate strong profitability and a commitment to shareholder returns, reflecting operational stability and financial strength. This enhances overall investor confidence in the banking sector. The record-high total payout of over 420 billion yuan in 2025 not only underscores the banks' resilience but also serves as a robust return to long-term shareholders. As cornerstones of the domestic financial system, these banks have maintained stable profit generation even in complex market conditions, supported by extensive customer bases, widespread branch networks, and prudent risk management.
From an industry perspective, the high dividends signal confidence in the sector's development and set a benchmark for value investing in the capital markets, guiding funds towards fundamentals and long-term returns rather than short-term speculation.
For retail investors, dividend yield serves as a straightforward and crucial metric for evaluating bank stocks. Many prioritize this measure, valuing the tangible annual cash returns over complex financial analysis. Based on A-share closing prices as of March 30, 2026, the dividend yields of the six major banks ranged between 3.8% and 4.7%.
Specifically, BANKCOMM offered the highest yield at 4.66%. PSBC, ICBC, and CCB all provided yields above 4%, at 4.30%, 4.10%, and 4.09% respectively. BOC and ABC yielded 3.99% and 3.84%. It is important to note that these yields fluctuate with stock price movements.
In the current low-interest-rate environment, the high dividend yields of the major state-owned banks present a significant advantage. With demand deposit rates as low as 0.05%, and three-year and five-year time deposit rates at 1.25% and 1.3% respectively, the banks' dividend yields are approximately three times that of five-year time deposits and over 2.3 times that of five-year government savings bonds, also significantly exceeding returns from mainstream wealth management products.
This comparative advantage makes bank stocks an attractive option for investors seeking stable income, especially those who prefer straightforward investments without the need to actively manage positions or worry about product net value fluctuations. Even bank executives have pointed out that the price-to-book ratios and dividend yields of banks like ICBC offer returns far superior to comparable investment and wealth management products, highlighting their investment value.
Analysts suggest that in the context of a 10-year government bond yield around 1.81% and one-year time deposit rates below 1%, the average 4% dividend yield of the six major banks is particularly compelling. These high yields not only offer advantages in major asset allocation but also act as a 'safe harbor' during market volatility, attracting long-term capital such as pension and insurance funds. They represent a scarce high-yield asset class combining safety and returns.
Despite a general decline in the share prices of the six major banks during the first quarter of 2026, with only CCB recording a slight gain of over 2%, analysts remain positive. Given the stabilization of net interest margins and a moderate profit recovery in 2025, dividend scales and yields for 2026 are expected to remain stable or see slight increases. Further profit improvements could provide more room for dividend growth, although banks must balance this against potential needs for business expansion, making significant downward adjustments unlikely.
Regarding investment opportunities in the banking sector, research indicates that half of the bank stocks now offer dividend yields above 4.5%, highlighting their long-term allocation value. Potential upward revisions to full-year economic expectations also present cyclical opportunities. As risk appetite in the capital market improves in 2026, valuation differentiation within the sector is anticipated. Banks demonstrating strengths in credit demand acquisition, liability cost improvement, established asset quality inflection points, or active market value management are expected to achieve significant excess returns.
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