For 16 consecutive years of continuous improvement! Behind the trillion-yuan dividends is Industrial Bank’s long-term confidence

(Source: China Visit Net, Financial Views)

Industrial Bank Co., Ltd.’s Chairman Lü Jiajin said, “During the ‘15th Five-Year Plan’ period, we will continue to optimize and strengthen our operating fundamentals, solidify the foundation for dividends and valuation. As always, we place great importance on shareholder returns.”

Produced by | China Visit Net

Reviewed by | Li Xiaoyan

In 2026, the first year of the “15th Five-Year Plan” period, looking back at the “14th Five-Year Plan,” Industrial Bank has delivered a standout value answer card, supported by cumulative cash dividends of over RMB 100 billion, continuously optimized operating efficiency and effectiveness, and steadily rising market recognition. During the “14th Five-Year Plan” period, the bank’s cumulative dividends totaled RMB 106.9 billion. In 2025, the dividend payout ratio first exceeded 30% to 31.02%. For 16 consecutive years, the dividend payout ratio has been increased. Since listing, cumulative dividends have exceeded RMB 200 billion, more than twice the amount of ordinary share financing. This sustained and steady shareholder return stems not only from a deep operating foundation, but also reflects its strategic resolve in building a value bank. It further lays the groundwork for the comprehensive construction of a first-class value bank during the “15th Five-Year Plan” period.

In the capital markets, sustained and stable high dividend payouts are a core label of high-quality bank stocks, and also an important basis for investors to hold long term. Industrial Bank distributed RMB 22.56 billion in dividends in full-year 2025, with accumulated cash of RMB 10.66 per 10 shares (including tax). Both the dividend scale and payout ratio are among the leading levels among joint-stock banks. Looking at a longer period, the RMB 100 billion-level dividends during the “14th Five-Year Plan” period account for nearly half of the bank’s total dividend amount since listing. Such continuity and stability are rare in the banking industry.

Steady dividend returns received a positive response from the market. In 2025, Industrial Bank’s share price rose 15.04%, and its market value increased by 11.97%, with its gains leading the lineup of listed banks. Even more worth noting is that over the past five years, major shareholders and long-term funds have cumulatively increased their holdings by more than 2.0 billion shares. Key investors such as the Fujian Provincial Department of Finance and Great Wall Life continued to add to their positions with “real money,” and the equity structure has been continuously optimized. This is both recognition of Industrial Bank’s operating capabilities and a firm bet on its long-term value, forming a virtuous cycle of “steady operations—high payout ratios—value recognition—capital reinforcement.”

The confidence behind high dividend payouts mainly comes from continuously improving operating fundamentals. In 2025, Industrial Bank achieved operating income of RMB 212.741 billion and net profit of RMB 77.469 billion, maintaining double growth for two consecutive years. Total assets exceeded the RMB 1.1 trillion mark, reaching RMB 1.109 trillion, firmly ranking second among joint-stock banks. In an environment where industry net interest margins have narrowed and growth faces pressure, the achievement is attributed to its precise operating strategy and strong risk management capabilities.

On the income side, it offsets pressure from net interest margin compression through cost control and structural optimization. Faced with industry-wide challenges, Industrial Bank focuses on liability cost management. In 2025, its interest-bearing cost ratio on liabilities declined by 43 basis points year over year, and its net interest margin remained at a favorable 1.71% level among peers. Net interest income has grown positively for three consecutive years. At the same time, it accelerates the integration of “a big investment bank, a big asset management firm, and big wealth management,” with net fee and commission income growing steadily; midstream business has become a new engine for income growth, and the income structure is becoming more balanced.

On the asset side, it focuses on the real economy and retail, with a comprehensive upgrade of its business structure. During the “14th Five-Year Plan” period, the bank’s loans in manufacturing, green finance, and technology finance increased by more than 1x, 2x, and 3x respectively, closely aligning with national industrial strategies. Retail business achieved a breakthrough, with retail deposits rising from RMB 0.73 trillion to RMB 1.80 trillion, taking the second spot among joint-stock banks. Retail AUM exceeded RMB 5.86 trillion, and its private banking scale entered the “trillion-yuan club.” It has broken the traditional business pattern where corporate and interbank businesses were the main strengths, and its development resilience has been significantly enhanced.

On the quality side, risk has been contained and provisions have been strengthened, with a sufficient safety buffer. By the end of 2025, the non-performing loan ratio fell to 1.08%, down 0.17 percentage points compared with the beginning of the “14th Five-Year Plan” period. The allowance coverage ratio reached 228.41%, and its risk compensation capability has remained at an excellent level in the industry. Newly generated non-performing loans in key areas such as corporate real estate, local government financing platforms, and credit cards decreased by 42%, 31%, and 13% respectively. Asset quality continued to improve, providing solid protection for profitability and dividends.

The outstanding performance during the “14th Five-Year Plan” period has laid a solid foundation for the start of Industrial Bank’s “15th Five-Year Plan.” Starting from a new beginning, the bank has defined its strategy led by “digital intelligence, greening, internationalization, comprehensiveness, and ecosystem development.” It will deeply cultivate industrial finance and continuously polish four cards: technology finance, green finance, wealth banking, and investment banking, to comprehensively build a first-class value bank.

The pace of digital intelligence transformation is accelerating, moving from “Digital Industrial Bank” to “Smart Industrial Bank,” using AI technology to drive innovation in operating and service efficiency; greening is consolidating advantages, deepening innovation in carbon finance to maintain its leading position in green finance; internationalization is accelerating breakthroughs, seizing opportunities for enterprises to go overseas, striving to become a top-tier participant in international business among joint-stock banks within two to three years; comprehensiveness is strengthening group-wide synergy, leveraging the full-license advantage to meet customers’ diversified needs; ecosystem development deepens scenario integration, embedding financial services into the entire chain of industries and everyday life.

At the same time, deeply cultivating industrial finance has become a core focus. Centered on a modern industrial system, it provides comprehensive financial services along the innovation chain, supply chain, and capital chain, nurturing new quality productive forces with financial liquidity. The four cards work together with coordinated efforts: technology finance loans lead among joint-stock banks, the benchmark position in green finance remains solid, and both wealth and investment banking scale rise steadily, forming differentiated competitive advantages.

Industrial Bank Co., Ltd.’s Chairman Lü Jiajin said, “During the ‘15th Five-Year Plan’ period, we will adhere to optimizing and strengthening our operating fundamentals, solidifying the foundation for dividends and valuation, and place great importance on shareholder returns as always. From the steady value return of RMB 100 billion-level dividends in the ‘14th Five-Year Plan,’ to the strategic blueprint of a first-class value bank in the ‘15th Five-Year Plan,’ Industrial Bank has always focused on value creation as the core. It will balance scale, quality, and returns, taking into account both shareholder returns and its own sustainable development.”

For investors, the dividend payout ratio increased for 16 consecutive years, continuously optimized operating efficiency and effectiveness, and a clear strategic path form the core value support for long-term investment. For the industry, Industrial Bank’s practices also confirm that only by deeply cultivating value, operating steadily, and serving the real economy can a bank go further steadily in a complex environment, achieving an organic unity of economic returns and social benefits.

Looking ahead to the “15th Five-Year Plan” period, as the “five-areas” strategy is implemented, industrial finance is further deepened, and the four cards continue to be polished, Industrial Bank is expected to achieve a new leap in value bank construction—delivering steadier operations, more generous returns, and better-quality services—contributing greater value to both the capital markets and the real economy.

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