Another joint-stock bank has joined the wave of interim dividend payouts.
On the evening of November 14, China Everbright Bank (601818.SH, 06818.HK) announced its 2025 interim profit distribution plan, proposing a cash dividend of 1.05 yuan per share (tax inclusive) for all ordinary shareholders, totaling 6.204 billion yuan (tax inclusive), accounting for 25.2% of its net profit attributable to shareholders. This marks the bank's second consecutive year of interim dividends following its first in 2024.
Among the nine joint-stock banks, seven have either implemented or plan to implement interim dividends, with a cumulative payout of 66.973 billion yuan. China Everbright Bank ranks fourth in terms of payout amount, trailing only China Merchants Bank, Industrial Bank, and CITIC Bank but surpassing Ping An Bank, Huaxia Bank, and China Minsheng Bank.
Notably, amid industry-wide pressure on net interest margins (NIM), most joint-stock banks have seen declining NIMs. China Everbright Bank's NIM for the first three quarters of 2025 stood at 1.34%, down 0.2 percentage points from 1.54% in 2024.
However, from a full-year perspective, the decline in NIMs for listed joint-stock banks is expected to narrow. China Everbright Bank's management predicts that the banking sector's NIM will stabilize after the current downward trend, with net interest income likely to recover.
**Seven of Nine Joint-Stock Banks Opt for Interim Dividends**
Among the seven joint-stock banks that have announced or completed interim dividends, China Minsheng Bank was the first to distribute its payout on September 16, 2025, allocating 5.954 billion yuan (tax inclusive) at 0.136 yuan per share.
China Merchants Bank and Industrial Bank initiated interim dividends for the first time, distributing 26.226 billion yuan and 11.957 billion yuan, respectively—the highest among joint-stock banks. CITIC Bank followed with a 10.46 billion yuan payout, making these three the only banks with interim dividends exceeding 10 billion yuan in 2025.
Ping An Bank and Huaxia Bank have also disclosed interim dividend plans, with Ping An Bank set to distribute 4.58 billion yuan, pending final approval, while Huaxia Bank's 1.591 billion yuan plan awaits shareholder approval.
Shanghai Pudong Development Bank has explicitly ruled out an interim dividend for 2025, while Zhejiang Commercial Bank is still studying the policy and has yet to announce a plan.
The push for interim dividends among joint-stock banks aligns with regulatory guidance. In December 2023, the China Securities Regulatory Commission (CSRC) issued revised guidelines encouraging listed companies to increase dividend frequency and amounts. Subsequent policies, including the new "State Nine Articles," further promoted multiple annual payouts.
Beyond joint-stock banks, the "Big Six" state-owned banks, city commercial banks, and rural commercial banks have also embraced interim dividends. The Big Six alone plan to distribute 204.66 billion yuan, while Changsha Bank, Bank of Changshu, Suzhou Rural Commercial Bank, and Zhangjiagang Rural Commercial Bank have completed their first interim payouts.
In total, 24 listed banks have either implemented or announced interim dividends, with cumulative payouts reaching 263.79 billion yuan.
**NIM Decline Expected to Narrow**
Amid sustained pressure on NIMs, the third-quarter performance of the nine joint-stock banks was largely subdued, with only two reporting revenue growth.
China Merchants Bank, Industrial Bank, CITIC Bank, China Everbright Bank, Ping An Bank, Huaxia Bank, and Zhejiang Commercial Bank saw revenues decline year-on-year by 0.51%, 1.82%, 3.46%, 7.94%, 9.78%, 8.79%, and 6.78%, respectively.
The revenue slump was primarily driven by NIM compression. For instance, China Merchants Bank's NIM fell to 1.87% by the end of Q3, down 0.12 percentage points year-on-year and 0.11 percentage points from 2024. The bank attributed this to lower loan prime rates (LPR), reduced mortgage rates, weak credit demand, and declining yields on new loans.
China Everbright Bank reported a 5.11% drop in net interest income to 68.881 billion yuan, with its NIM shrinking to 1.34%, down 0.2 percentage points from 2024.
In contrast, Shanghai Pudong Development Bank and China Minsheng Bank posted revenue growth of 1.88% and 6.74%, respectively. While Minsheng Bank's NIM edged up 0.03 percentage points, Pudong Development Bank's fell by 0.12 percentage points.
Profitability-wise, China Merchants Bank, Industrial Bank, CITIC Bank, and Pudong Development Bank reported positive net profit growth, led by Pudong Development Bank at 10.21%. Meanwhile, Minsheng Bank, Ping An Bank, China Everbright Bank, Huaxia Bank, and Zhejiang Commercial Bank saw declines ranging from 2.86% to 9.59%.
Looking ahead, joint-stock banks anticipate a stabilization in NIM declines. Industrial Bank expects regulatory measures to lower liability costs and stabilize margins, while Pudong Development Bank noted a marked slowdown in NIM contraction in Q3. Zhejiang Commercial Bank also observed early signs of NIM stabilization in 2025.
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