Chinese Banks to Pay Over ¥266 Billion in Interim Dividends, Boosting Shareholder Returns

A wave of mid-year dividend distributions is underway in China's banking sector, with 20 A-share listed banks planning to pay out a combined 266.11 billion yuan (approx. $36.7 billion). Rifeng Bank initiated the dividend season, becoming the first to complete its payout of 196 million yuan on September 10, according to a report by Times Weekly.

State-Owned Giants Drive Payout Surge

The bulk of the planned dividends comes from China's six largest state-owned banks, which for the first time have collectively raised their interim dividend payout ratio to 31% from a previous 30%. Their combined distribution is set to total 220.99 billion yuan, accounting for over 83% of the total announced amount.

Key dividend plans from the state-owned banks include:

• Industrial and Commercial Bank of China (ICBC): 53.85 billion yuan
• China Construction Bank (CCB): 52.58 billion yuan
• Agricultural Bank of China (ABC): 45.39 billion yuan
• Bank of China (BoC): 38.34 billion yuan

At an earnings conference, an ICBC official attributed the increase to strong first-half performance, stable capital levels, and a desire to respond to investor expectations while balancing long-term growth.

A Broader Shift in Shareholder Returns

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The trend extends beyond the state-owned giants, with several joint-stock and city commercial banks also announcing mid-year payouts. Notably, Bank of Shanghai, Bank of Hangzhou, Beijing Bank, and Chengdu Bank are all issuing interim dividends for the first time, signaling a wider adoption of the practice.

According to Wu Zewei, a researcher at Suning Bank cited by Times Weekly, the development reflects a "systemic upgrade" in the banking sector's shareholder return mechanisms. He noted that the move aligns with regulatory policy encouraging more frequent dividends and demonstrates the banks' stable profitability and capital adequacy.

Payouts and Performance

Rifeng Bank's dividend marks its first-ever interim distribution since listing in 2021 and is part of a "value enhancement plan" initiated after its stock price fell below its net asset value per share. For the first half of the year, the bank reported a 0.94% increase in net profit to 898 million yuan, though revenue fell 1.96% due to lower investment income.

While smaller banks like Rifeng are distributing funds in September, the larger state-owned banks are expected to complete their payouts between December and January. This longer timeline is attributed to their larger scale, dual-listings, and more complex administrative processes.