As the 2026 interim reporting season gets underway, a wave of banks has been rolling out interim profit distribution proposals. By 6 PM on August 27, a total of eight A-share listed banks, including China CITIC Bank, Ping An Bank, Bank of Hangzhou, Bank of Ningbo, Bank of Chengdu, Jiangsu Suzhou Rural Commercial Bank, Zhejiang Ruifeng Rural Commercial Bank, and Jiangsu Jiangyin Rural Commercial Bank, had disclosed their 2026 interim profit distribution plans. A closer look at these proposed dividend plans reveals a clear divergence in payout strength among the banks, with cash dividends ranging from 1 yuan to 4.89 yuan per 10 shares, and the interim dividend ratio to half-year net profit attributable to parent company shareholders reaching as high as over 32%.
Compared to the once-a-year year-end dividend, issuing an additional interim cash dividend allows investors to pocket tangible returns immediately. As of 6 PM on August 27, among A-share listed banks, eight institutions, including China CITIC Bank, Ping An Bank, Bank of Hangzhou, Bank of Ningbo, Bank of Chengdu, Jiangsu Suzhou Rural Commercial Bank, Zhejiang Ruifeng Rural Commercial Bank, and Jiangsu Jiangyin Rural Commercial Bank, had put forward interim profit distribution plans. In terms of absolute total dividend payout, joint-stock banks show a clear scale advantage, with China CITIC Bank's billion-yuan-level dividend leading the pack. City commercial banks stand out for their per-share payout intensity, while rural commercial banks, though smaller in total dividend amounts, also exhibit notable divergence in payout ratios.
Looking at per-share dividend amounts, Bank of Chengdu leads the pack with a cash dividend of 4.89 yuan per 10 shares, totaling 2.073 billion yuan in cash dividends, representing 30.02% of net profit attributable to ordinary shareholders of the parent company in the first half of 2026. Among the eight banks, Bank of Chengdu delivered the highest per-share payout level. Additionally, Bank of Hangzhou plans a cash dividend of 4.60 yuan per 10 shares, with a total payout of approximately 3.335 billion yuan, while Bank of Ningbo proposes 4 yuan per 10 shares, totaling 2.641 billion yuan, both representing relatively high per-share dividend levels.
When re-ranked by the proportion of profit distributed, the landscape shifts again. On a payout ratio basis, calculated using ordinary shareholders' equity, China CITIC Bank posts the highest ratio among the eight banks, distributing 2.03 yuan in cash dividends per 10 shares, with a total payout of approximately 11.296 billion yuan, accounting for 32.09% of net profit attributable to ordinary shareholders of the bank in the interim period of 2026. Fellow joint-stock bank Ping An Bank plans a cash dividend of 2.49 yuan per 10 shares for the first half of the year, totaling 4.832 billion yuan, representing 20.02% of net profit attributable to ordinary shareholders in the consolidated statements.
Among the three listed rural commercial banks, Jiangsu Jiangyin Rural Commercial Bank proposes a cash dividend of 1 yuan per 10 shares, with no bonus shares or capital reserve conversion, accounting for 31.27% of net profit attributable to parent company shareholders in the consolidated statements, a relatively high payout ratio. Zhejiang Ruifeng Rural Commercial Bank also plans 1 yuan per 10 shares, with a payout ratio of 21.85%, while Jiangsu Suzhou Rural Commercial Bank's dividend accounts for 18.29% of net profit attributable to listed company shareholders for the first half of 2026.
Compared with interim data from 2025, Zhejiang Ruifeng Rural Commercial Bank and Bank of Chengdu did not draft interim profit distribution proposals that year, while Jiangsu Jiangyin Rural Commercial Bank's disclosed 2025 interim profit distribution proposal used data based on the first three quarters of 2025 for shares and net profit figures. Given these circumstances, the remaining five banks can be compared on a like-for-like basis with the previous year. In terms of total dividend payout, all five banks increased, with none declining. On payout ratio, four banks improved, while Ping An Bank saw a slight decrease.
At the 2026 interim results conference, Ping An Bank Board Secretary Zhou Qiang responded that this year's interim dividend is set at a 20% ratio, with the total dividend amount higher than last year, sharing operating growth results with investors. However, the bank must also consider business development needs in the second half and next year, retaining a certain capital safety cushion to reserve sufficient capital for business acceleration once returning to a growth trajectory. Zhou stated that the bank will continue to act within its means while striving for the best, balancing the relationship among capital accumulation, business development, and shareholder returns based on actual operating conditions, aiming to maintain stability and continuity in both dividend levels and frequency.
Setting reasonable payout ratios and frequency
Following the new "National Nine Guidelines," interim dividends have gradually expanded from major banks to city commercial banks and rural commercial banks, with the dual-frequency dividend model of "annual dividend plus interim dividend" becoming a new trend among listed banks. Dividends are essentially a choice: distributing profits to shareholders means they cannot be retained to supplement capital; retaining substantial profits enhances a bank's risk resilience but reduces current shareholder cash returns. For banks, an industry subject to strict regulation and capital consumption, the capital adequacy ratio is an unbreachable red line, and the dividend ceiling is also defined by capital space.
Regarding how to balance corporate development with shareholder dividends, several bank executives responded at the 2026 interim results conferences. China CITIC Bank Vice President Zhao Yuanxin stated that, considering current profitability and future business development, the board proposed a total interim dividend of 11.296 billion yuan for 2026, representing 32.09% of net profit attributable to ordinary shareholders, up 0.34 percentage points from the full year of last year, reaching a record high. During the "15th Five-Year Plan" period, the bank will continue to prioritize shareholder returns, adhere to a stable and sustainable dividend policy, and strive for steadily improving dividend levels to repay investor trust and support.
Zhao noted that the banking industry is currently facing downward pressure on capital adequacy ratios. The bank will focus on value-oriented banking construction, consolidate its sound operating momentum, strengthen its capital adequacy foundation, and continuously enhance corporate investment value and shareholder return capabilities. Specifically, it will accelerate the transition to a light-capital model, expand key light-capital businesses to increase their scale and share, and implement closed-loop management across all aspects of capital, including planning, allocation, assessment, monitoring, and measurement, to improve capital efficiency. According to Zhao, China CITIC Bank is applying for implementation of the advanced capital measurement approach, which, if approved, would positively improve its capital adequacy ratio.
Regarding capital replenishment, Zhou said that Ping An Bank's capital adequacy ratio and Tier 1 capital adequacy ratio declined in the second quarter, primarily due to seasonal factors, as the annual dividend was implemented in the second quarter, representing a one-time disturbance. Overall, the capital adequacy ratio remains at a relatively stable level. With current profit growth, internal capital generation capacity can support normal business development.
In the view of Wu Zewei, a special researcher at Sushang Bank, the core for listed banks in balancing long-term development and shareholder dividends lies in establishing a dynamic equilibrium mechanism under capital constraints, balancing the triple objectives of capital safety, business expansion, and shareholder returns. Banks need to use capital adequacy levels as the bottom line, combined with current earnings quality and internal cash-generating capacity, to reasonably set dividend ratios and frequency. During periods of capital pressure, profits should be appropriately retained to thicken core capital reserves, reserving a safety margin for subsequent credit expansion and light-capital business transformation. In phases of sound operations and ample capital, banks can appropriately raise dividend ratios, or even add interim dividends, to continuously reward shareholders. At the same time, banks need to improve capital efficiency through business structure optimization, advancing the light-capital transition and refining full-process capital management to reduce capital consumption pressure. This approach helps move away from relying solely on retained profits to supplement capital, ensuring continuity and stability of medium- and long-term operating growth while maintaining stable shareholder dividend returns.
Comments