The six major banks' dividend comparison: Bank of Communications has the highest dividend yield, while Industrial and Commercial Bank of China pays out the largest dividend amount.

Ask AI · Why Have High-Dividend Bank Stocks Become a Safe Haven in the Low-Interest-Rate Era?

Our reporter Liu Jia from chinatimes.net.cn, Beijing report

As the six state-owned commercial banks all released their 2025 annual reports, the annual “dividend statements” have been officially finalized.

Industrial and Commercial Bank of China, Agricultural Bank of China, Bank of China, China Construction Bank, Bank of Communications, and Postal Savings Bank together paid out RMB 427.42B in cash for the year, maintaining a stable dividend payout ratio of 30% or above. With tangible cash returns, they have become the indisputable “dividend mainstay” in the A-share market.

“As I bought bank stocks initially, I was looking at high dividends and low valuations—I wanted to earn dividends and use them to apply for new listings based on share price.” Summer, an investor, told reporters from The Huaxia Times. Her holdings are mainly in the six state-owned major banks, and her holding period has been more than three years. In her view, bank stocks don’t need to obsess over short-term price fluctuations. “If the stock price doesn’t rise, there’s no need to panic. The dividends will land in your account every year on time. Reinvest the dividends, increase the share count little by little—over the long run, the returns aren’t bad.”

Ordinary investors’ choice reflects their recognition of the steady operating foundation of state-owned major banks. In 2025, the six banks’ overall earnings continued to grow, providing solid support for high-ratio, large-scale cash dividends.

In the view of industry analysts, the reason listed banks can continuously expand the scale of their dividends primarily lies in their stable and solid operating performance; meanwhile, continued large cash dividend distributions can effectively raise shareholders’ actual return levels and further strengthen investors’ confidence and holding experience.

Dividends From the Six Banks Exceed RMB 420 Billion

In 2025, all six state-owned major banks achieved year-on-year growth in both operating income and net profit attributable to shareholders, with total net profit attributable to shareholders reaching RMB 1.42 trillion. Average daily earnings exceeded RMB 14.2k, showing ongoing resilience in operations.

Among them, Industrial and Commercial Bank of China reported operating income of RMB 3.9B for the full year and net profit attributable to shareholders of RMB 838.27B, maintaining the top position by scale; China Construction Bank recorded operating income of RMB 368.56B and net profit of RMB 761.05B, following closely behind; Agricultural Bank of China had operating income of RMB 338.91B and net profit of RMB 725.31B, leading in growth rate among the six banks; Bank of China reported operating income of RMB 291.04B and net profit of RMB 658.31B, with strong performance in operating income growth; Bank of Communications and Postal Savings Bank reported net profits of RMB 243.02B and RMB 95.62B, respectively, with their earnings scale improving steadily.

On asset quality, the six banks’ overall non-performing loan ratios remained stable, provisioning coverage was sufficient, and their risk-resistance capacity was strong—providing reliable assurance for continued dividend payments.

Solid operating performance also translated into real cash returns to shareholders.

In 2025, the six state-owned major banks combined for cash dividends of RMB 87.4B. All maintained dividend payout ratios of 30% or above, continuing the “high proportion, large scale, and sustainable” dividend characteristics seen in recent years, and becoming the most representative high-dividend segment in the A-share market.

On specific dividend proposals, Industrial and Commercial Bank of China ranked first with a total annual dividend of RMB 427.42B. Dividends were RMB 3.103 per 10 shares (including tax), continuing its long-standing advantage in dividend scale. China Construction Bank followed closely: annual dividends were RMB 110.59B, with RMB 3.887 per 10 shares (including tax). Its dividend intensity remained stable. Agricultural Bank of China paid RMB 101.68B in dividends for the full year, with RMB 2.495 per 10 shares (including tax). Its profit growth pace rose in step with its dividend scale. Bank of China, Bank of Communications, and Postal Savings Bank paid dividends of RMB 87.32B, RMB 72.92B, and RMB 28.69B for the year, respectively; dividends per 10 shares were RMB 2.263, RMB 3.247, and RMB 2.183 (all including tax). All dividend plans have been approved and disclosed in their annual reports.

In terms of dividend payout ratios, the six banks continued to maintain stable levels of 30% or above. Bank of Communications’ dividend payout ratio reached 32.3%, slightly higher than its peers; the other five banks were all stable at around 30%.

Dividend policy is also a key focus for the market. At the earnings release conference, Zhang Baojiang, vice chairman, executive director, and president of Bank of Communications, said: “We have always attached great importance to investor returns. During the 14th Five-Year Plan period, we have cumulatively distributed cash dividends of RMB 123.9 billion to all shareholders. In the second half of this year, we will distribute the 2025 dividends to all shareholders. The total dividend amount will account for 32.3% of net profit attributable to ordinary shareholders. The dividend ratio has remained above 30% for 14 consecutive years.”

“In the future, we will continue to do a good job in operating and management, continuously improve value creation, and deliver dividends and returns to investors with more solid performance and continued stability.” Zhang Baojiang said.

At Bank of Communications’ 2025 annual performance release meeting, Liu Jun, president of Industrial and Commercial Bank of China, told reporters including those from The Huaxia Times: ICBC will make dynamic adjustments to dividends based on market conditions. “For the long-term sustainable and healthy development of the capital market, if there is indeed public demand in the capital market regarding dividend policy, then in terms of the dividend payout ratio we will make corresponding upward adjustments. As a bellwether for the market, ICBC will definitely do what the market needs and think what the market thinks. If our adjustments bring about healthier and more sustainable positive development for the market, ICBC will certainly play a model-leading role and help the capital market develop better.”

“As a top-tier institution in the banking industry, the fact that it delivers dividends of such a large scale shows its profitability and its emphasis on returning value to shareholders, reflecting strong operational stability and financial strength. This is helpful for enhancing investors’ confidence in the banking industry.” Jiang Han, a senior research fellow at Pangu Think Tank, analyzed for reporters from The Huaxia Times.

“The dividend performance of the six banks totaling more than RMB 420 billion in 2025 is not only a direct manifestation of their operational resilience, but also a strong return to shareholders’ long-term trust.” Yuan Shuai, deputy director of the investment department at the China Urban Development Research Institute, told reporters from The Huaxia Times. As the stabilizing “keystone” of China’s domestic financial system, the six banks maintain stable earnings output amid complex market conditions. The confidence behind such massive dividends comes from solid fundamentals: their large customer base, extensive branch network coverage, and prudent risk management collectively support stable cash flow and profit scale. This dividend scale not only sets a historical high, but also demonstrates the “cash cow” nature amid market fluctuations. For investors who prefer steady returns, it is undoubtedly a strong confidence booster.

“From an industry perspective, the six banks’ high dividends also send positive signals. They not only show the banking industry’s confidence in its own development, but also set a benchmark for value investing across the entire capital market, guiding capital back to fundamentals and focusing on long-term returns rather than short-term speculation.” Yuan Shuai said.

High-Dividend Yields Through a Falling-Rate Cycle

For ordinary investors, complex financial statements and macroeconomic analysis are difficult to fully understand. As the most direct and easiest-to-understand investment return indicator, the dividend yield has become the core basis for them choosing bank stocks.

Another investor, Jingcheng, admitted to reporters: “I don’t understand other parameters. I only look at dividend yield. Dividends land in my hands every year, and that makes me feel at ease.”

Based on the A-share closing price on March 30, 2026, the dividend yields of the six banks are in the range of 3.8% to 4.7%.

Specifically, Bank of Communications has the highest dividend yield at 4.66%. Postal Savings Bank, ICBC, and China Construction Bank all have dividend yields above 4%, at 4.30%, 4.10%, and 4.09%, respectively. Bank of China and Agricultural Bank of China have dividend yields of 3.99% and 3.84%, respectively. However, as stock prices fluctuate, dividend yields will also adjust accordingly, and the ranking of dividend yields among the banks will move in tandem.

It is worth noting that amid a sustained low-interest-rate market environment, the current risk-free rate and returns on fixed-income products are generally at low levels.

As of the end of March 2026, the demand deposit rate of the six state-owned major banks is only 0.05%. Their 3-year and 5-year term deposit rates are 1.25% and 1.30%, respectively. Over the same period, the yields on 3-year and 5-year treasury savings bonds are 1.63% and 1.70%, respectively. Meanwhile, annualized returns on conservative bank wealth management products are concentrated in the 1.3% to 2.8% range.

In stark contrast, the high-dividend advantage of the six state-owned banks has become even more prominent. Their dividend yields are generally around three times that of 5-year term deposits and more than 2.3 times that of 5-year treasury bonds, significantly higher than returns from mainstream wealth management products.

“I calculated a simple comparison: if I deposit the money for one year as a time deposit, the interest is pitifully low. But if I buy bank stocks and use today’s dividend yield, the return is more than three times that of term deposits—and dividends are paid every year in a stable and predictable way.” Jingcheng told reporters. For someone like him who doesn’t understand professional investing, he doesn’t need to spend effort studying market moves, and he also doesn’t need to worry about wealth-management net value fluctuations. As long as he holds bank stocks, he can receive real cash returns every year.

Even Liu Jun said directly that, judging from ICBC’s PB and dividend return ratio, the current overall return is far higher than comparable investment products and wealth management products, indicating that ICBC offers substantial investment value.

“Under the current low-interest-rate environment where the yield on 10-year treasury bonds is about 1.81% and the one-year term deposit rate is below 1%, the six banks’ 4% dividend yield has a clear advantage.” Jiang Han said. From the perspective of dividend yield, compared with treasury bonds and term deposits, the six banks’ dividend income is higher, providing investors with more substantial cash returns. This makes it highly attractive in the capital market and an excellent option for investors seeking stable returns.

“The six banks’ high dividend yields not only have obvious advantages in broad asset allocation, but also become a ‘safe haven’ amid market volatility. For long-term funds such as pension funds and insurance capital that pursue stable returns, they have extremely strong appeal. In other words, in today’s capital market, the six banks’ dividend yields have become scarce high-yield assets, offering investors a choice that combines both safety and yield.” Yuan Shuai added.

Reporters from The Huaxia Times also compiled the performance of bank stocks in this year’s first quarter. According to data from WIND, from the start of the year to March 30, the six state-owned major banks generally declined, with only China Construction Bank showing a slight increase of more than 2%.

Although stock prices saw temporary fluctuations, Jiang Han said that, considering the backdrop of the industry’s net interest margin stabilizing in 2025 and a mild recovery in earnings, in 2026 the six banks’ dividend scale and dividend yields are generally expected to remain stable or rise slightly. “If earnings continue to improve, banks will have more profit available for dividends. At the same time, it’s also important to note that dividend reductions may occur due to needs such as business expansion, but the probability of a large adjustment is low. Banks will weigh multiple factors comprehensively.”

Regarding investment opportunities in the banking sector, a team led by Ma Tingting from the Banking Research Institute at Guotai Junan Securities said in a research report that currently, half of the stocks in the banking sector have dividend yields that have already rebounded to 4.5% or above, making their long-term allocation value increasingly prominent. At the same time, with the possibility that the full-year economic outlook may be revised upward, bank stock investments can benefit from both the cyclical upswing option. It is expected that in 2026, as risk appetite in the capital market increases, valuations of individual stocks within the sector will shift from convergence to divergence. Stocks with strong ability to secure credit demand on the asset side, or with greater room for improvement in funding-side costs, or those where an asset-quality inflection point is established, or those with an advantage in active market value management, may deliver notably higher-than-expected excess returns.

责任编辑：Feng Yingzi 主编：Zhang Zhiwei