Ping An Bank Executive Discusses Dividend Strategy: Prioritizing Investor Needs While Maximizing Internal Efforts

Deep News03-23 16:52

On March 23, at the 2025 performance briefing held by Ping An Bank Co.,Ltd., Vice President and Chief Financial Officer Xiang Youzhi stated that the bank has consistently prioritized investor dividend requirements while also striving to maximize its internal capabilities regarding dividend distributions.

Xiang Youzhi disclosed that Ping An Bank Co.,Ltd. has established a dividend strategy targeting a payout ratio between 20% and 30%, with dividend planning conducted in accordance with regulatory requirements.

Regarding capital replenishment, Xiang Youzhi reported that Ping An Bank Co.,Ltd.'s core tier 1 capital adequacy ratio stood at 9.36% for 2025. The bank did not conduct equity financing during the year, instead relying primarily on its own core competitiveness for capital accumulation. He noted that, in the short term, the 9.36% core tier 1 capital adequacy ratio provides a sufficient buffer above regulatory requirements. With relatively stable short-term capital needs, the bank will focus on endogenous capital growth as its primary development strategy and currently has no new capital replenishment plans.

Xiang Youzhi mentioned that the bank issued perpetual bonds in 2025. In the first quarter of 2026, the redemption of previously issued preferred shares was hedged. Subsequent issuance of tier 2 capital bonds will be timed based on market conditions; if market conditions are favorable, the bank may naturally make some replenishments, partly due to upcoming maturities.

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