The six major state-owned banks will conclude their 2025 performance! What's the confidence behind the 420 billion yuan in dividends?

With the official release of the annual reports of Agricultural Bank of China and Bank of China on the evening of March 30, the disclosure of 2025 performance by the six largest state-owned banks has been completed successfully. Over the past year, faced with a complex and ever-changing market environment, all six state-owned banks achieved “double positive growth” in both operating revenue and net profit attributable to shareholders, delivering a solid set of results. Against the backdrop of widespread pressure on the net interest margin, the six banks proactively responded by optimizing their credit portfolios and strengthening cost controls on the liability side, while also setting aside over RMB 420 billion for dividends to reward shareholders, becoming a stable “shock absorber” in the capital markets. Meanwhile, amid the wave of digital transformation, the accelerated deployment of AI technology has been especially striking—ranging from credit approval to risk management, artificial intelligence is being deeply integrated into the entire business workflow.

In the view of analysts, these results further reflect an improvement in the operating resilience of state-owned banks during the period of economic adjustment. Looking ahead, it is expected that dividends from state-owned banks will continue to follow a stable pace, while financial services will be embedded more deeply into the industrial supply chains of the real economy, gradually forming a new ecosystem consisting of finance, technology, and industry.

“Double positive growth” in revenue and net profit

On the evening of March 30, the annual reports of Agricultural Bank of China and Bank of China were released. By then, the “answer sheets” for 2025 from all six state-owned banks had fully come to light. A reporter from Beijing Business Today reviewed and found that all six banks achieved “double positive growth” in both operating revenue and net profit, with total net profit amounting to RMB 1,424.56 billion.

Operating income is the primary yardstick for measuring the operating performance of commercial banks. Industrial and Commercial Bank of China (ICBC) remains firmly in the “top spot.” Data show that at the end of the reporting period, the bank led the six major banks with operating revenue of RMB 838.70 billion. China Construction Bank, Agricultural Bank of China, and Bank of China ranked in the second tier with operating revenue of RMB 761.049 billion, RMB 725.306 billion, and RMB 658.310 billion, respectively. Postal Savings Bank of China and Bank of Communications had operating revenue of RMB 355.728 billion and RMB 265.071 billion, respectively.

As the most direct reflection of a commercial bank’s core profitability, the ranking of net profit shows a slight adjustment compared with revenue. Among them, ICBC once again topped the “profit king” list with net profit attributable to shareholders of RMB 368.562 billion. China Construction Bank followed closely with RMB 338.906 billion, maintaining the runner-up position. Agricultural Bank of China and Bank of China both held steady in the “over RMB 200 billion club,” achieving net profit attributable to shareholders of RMB 291.041 billion and RMB 243.021 billion, respectively. Bank of Communications and Postal Savings Bank of China recorded net profit attributable to shareholders of RMB 95.622 billion and RMB 87.404 billion, respectively, with their profit scales rising steadily.

On the growth-rate front, the six banks displayed differentiated performance. In particular, Bank of China led the six banks with year-on-year revenue growth of 4.48%, becoming the “pacesetter” for revenue growth. Agricultural Bank of China recorded year-on-year growth in net profit attributable to shareholders of 3.18%, ranking first among the six banks in terms of net profit growth speed.

Regarding the favorable overall development trend demonstrated by the six state-owned banks for 2025—“stable growth in scale, improving profitability, and optimization in quality”—Wang Hongying, President of the China (Hong Kong) Financial Derivatives Investment Research Institute, pointed out that in 2025 the domestic and international economic environment is complex and changeable. Against this backdrop, it is truly commendable that the six state-owned banks achieved simultaneous positive growth in both operating revenue and net profit. On one hand, this fully reflects that the state-owned banks’ operating resilience has been further enhanced during the economic adjustment cycle, and that in the context of counter-cyclical economic regulation, they actively shoulder the responsibilities of major banks. On the other hand, facing adjustment-related economic pressure, the state-owned banks optimized their operating models and adopted diversified operating strategies. In an environment where the net interest margin narrowed, they offset the impact brought by margin compression by expanding the scale of credit lending. In addition, the state-owned banks continued to advance innovation in integrated financial services, improving profit potential through diversified services. They also made evident progress in cost control and boosting efficiency through digital means. With the help of more refined cost management, they further enhanced overall returns and profitability.

Optimizing credit structure to offset pressure on the interest margin

Affected by factors such as the reduction in the Loan Prime Rate (LPR), the repricing of existing loans, and intensified competition for deposits, all six state-owned banks’ net interest income yield (i.e., “net interest margin”) in 2025 showed a downward trend.

Postal Savings Bank of China’s net interest margin was 1.66%, down 21 basis points year over year. China Construction Bank, Agricultural Bank of China, ICBC, and Bank of China posted net interest margins of 1.34%, 1.28%, 1.28%, and 1.26%, respectively, down 17 basis points, 14 basis points, 14 basis points, and 14 basis points year over year, respectively. Bank of Communications’ net interest margin was 1.20%, down 7 basis points year over year, with a smaller decline.

As the core indicator of bank profitability, the downward trend in the net interest margin will impose higher requirements on banks’ loan-disbursement timing and cost control. Regarding the net interest margin trend in 2026, at the earnings conference, multiple bank executives also provided response measures. Sheng Liurong, Chief Financial Officer of China Construction Bank, said, “By strengthening effective, proactive liability management, optimizing the asset-liability structure, and enhancing tiered and category-based customer pricing management, we can further tap potential on both the asset side and liability side, so that the decline in the net interest margin can be further narrowed.”

Li Chenggang, Vice President of Bank of China and Secretary to the Board, stated that for 2026, the year-on-year decline in net interest margin is expected to narrow significantly, and net interest income is expected to achieve positive growth. To do so, banks need to build a solid fundamental base for asset-liability business and effectively control the fall in RMB interest margins; they also need to optimize global service systems and maintain overall stability of foreign-currency business interest margins.

By aligning with the “Five Papers” major initiatives in finance and the development of new quality productive forces, and by reasonably expanding the scale of loans and optimizing the credit structure, it is also possible to offset, to a certain extent, the profit pressure caused by the downward trend in net interest margin.

From the structure of incremental credit disbursement, ICBC’s total customer loans and advances reached RMB 30.5 trillion, up 7.5% year over year. Support for key areas such as the “Five Papers” in finance continued to increase; loans flowing to the manufacturing sector, inclusive finance, and technology innovation increased by 19.4%, 22.8%, and 19.9%, respectively.

Agricultural Bank of China’s total loans and advances issued reached RMB 27.13 trillion, with an increase of RMB 2.23 trillion. The growth rate of county-region loans continued to be higher than the bank-wide level: loan balance of RMB 10.9 trillion, up 11.0%, with the balance accounting for 41.0% of onshore loans. Bank of China’s total loans and advances issued reached RMB 23.45 trillion. Loans directed to the manufacturing sector and manufacturing medium- and long-term loans had balances of nearly RMB 3.5 trillion and RMB 1.5 trillion, respectively, which were 2.4 times and 3.3 times the levels at the beginning of the 14th Five-Year Plan period.

China Construction Bank’s net amount of loans and advances issued was RMB 26.93 trillion, up 7.53%. The growth rate of loans to key areas such as the “Five Papers” in finance and the manufacturing sector was higher than the average growth rate of all categories of loans. Bank of Communications also mentioned in its annual report that it guided resources to concentrate on strategic areas. Loans to technology, green industries, inclusive small and micro businesses, the elderly-care industry, and core industries in the digital economy increased by 10.73%, 14.16%, 20.76%, 49.12%, and 14.46%, respectively.

As said by Gao Zhengyang, a special researcher at Suzhou Shang Bank, as the deposit interest rate market-based adjustment mechanism continues to take effect, deposit interest rates are lowered in sync. The pressure on state-owned banks’ interest margins due to their downward trend will be alleviated at the margin. The industry’s net interest margin is expected to enter a relatively stable range. Next, to ease net interest margin pressure, on the loan-disbursement side, directions such as high-end areas in the manufacturing sector, technology innovation enterprises, and green industries will receive strong policy-level support. Benefiting from low-cost funding provided by structural monetary policy tools, and with banks’ bargaining power steadily improving in these areas, banks have good potential for earnings. At the same time, consumer loan pricing has higher flexibility. Under the premise of controllable risk, together with support measures such as policy interest subsidies, it also offers considerable room for returns. Areas that benefit from policy dividends have potential for earnings growth, but banks still need to continuously enhance refined pricing capabilities and risk-identification capabilities in order to stabilize overall earnings.

Total dividends exceed RMB 420 billion

In terms of shareholder returns, on the basis of steady and robust earnings growth, the six banks continued to increase their dividend payouts, becoming benchmarks for “high dividend yield” in the capital markets.

In 2025, the six banks’ total dividends for the full year exceeded RMB 420 billion. ICBC is expected to pay full-year dividends of RMB 110.593 billion; China Construction Bank, RMB 101.684 billion; and Agricultural Bank of China, Bank of China, Bank of Communications, and Postal Savings Bank of China, respectively, RMB 87.321 billion, RMB 72.917 billion, RMB 28.692 billion, and RMB 26.217 billion. The dividend payout ratios of the six banks were all maintained at 30% or more of net profit attributable to shareholders.

When discussing capital planning and dividend arrangements for the next phase, ICBC President Liu Jun said, “We will further scientifically quantify our capital plan, so that ICBC’s capital planning becomes an annual rolling, dynamic capital plan—so that the use of capital, the raising of capital, and the replenishment of internal and external capital are highly integrated. Regarding dividend arrangements, we will closely observe changes and demands in the capital markets and respond to everyone’s needs and voices.”

In response to market concerns, Bank of Communications President Zhang Baojiang said, “The total dividend amount of Bank of Communications for 2025 increased by nearly 2% compared with 2024. This is mainly attributable to steady progress in business development and overall favorable performance. Continued positive growth in net profit increased the amount of profits available for distribution. In 2026, Bank of Communications is confident that it will continue to return value to shareholders with strong performance and stable dividends.”

A stable and timely implementation of dividends is inseparable from solid capital support. In March 2025, Bank of China, China Construction Bank, Bank of Communications, and Postal Savings Bank of China released their share placement plans (targeted issuance). They proposed to raise funds through issuing A-share stocks to specific parties such as the Ministry of Finance, with amounts not exceeding RMB 165.0 billion, RMB 105.0 billion, RMB 120.0 billion, and RMB 130.0 billion, respectively. Total planned fund-raising amounted to RMB 520 billion. Of this, the Ministry of Finance contributed RMB 500 billion, and then the aforementioned targeted issuance matters were all completed.

The 2026 Government Work Report once again sent a signal. It clarified that the plan is to issue special treasury bonds totaling RMB 300 billion to support large state-owned banks in replenishing capital.

“Against the backdrop of policies clearly supporting state-owned banks in replenishing capital, the continued implementation of measures such as fiscal injections and special treasury bonds will effectively ease capital constraints for state-owned banks and provide more ample buffer space for expanding their credit scale and resolving risks,” Gao Zhengyang further noted. He also pointed out that an increase in the capital adequacy ratio provides the basis for stabilizing dividend payout ratios and even adjusting them upward to a moderate extent. At the same time, under the policy initiative to improve shareholder returns, it is expected that dividends from state-owned banks will continue on a stable track, highlighting the principle of sustainability. State-owned banks may coordinate capital planning in a more refined manner. On the one hand, by improving ROE and optimizing the structure of risk-weighted assets, they can enhance their ability to replenish capital internally. On the other hand, while meeting regulatory requirements and ensuring credit support for the real economy, they will maintain prudent dividend levels, balancing shareholder returns with the needs of long-term development.

Racing ahead on AI acceleration

Behind the steady improvement in performance, deepening digital transformation has also become a core driving force for commercial banks. The accelerated rollout of artificial intelligence (AI) applications is especially noteworthy. With rapid iteration and widespread adoption of AI technology, commercial banks’ “AI+” strategies have been continuously deepened. In their 2025 annual reports, all six state-owned banks highlighted progress in AI technology applications, embedding AI capabilities deeply into the full business workflow.

In its annual report, ICBC disclosed that it has innovatively implemented the “Leading AI+” initiative, deploying over 500 AI applications across more than 30 business areas. Its AI digital employees handle 55,000 work-hours per year. At the same time, ICBC keeps pace with technological development by exploring the establishment of an “one general-plus-multiple specialties” agent collaboration system based on Gongyin Zhiyong. ICBC said it will align with trends in technological change, seize opportunities brought by “artificial intelligence +,” continuously strengthen digital and intelligent momentum, and deepen the digital and intelligent transformation of business management and risk governance.

At the 2025 earnings conference, Agricultural Bank of China President Wang Zhiheng said the bank is firmly grasping the wave of AI technology development. It has specifically set up an office for building smart banks, increasing the overall coordination and advancement of smart bank construction. It has also clarified that it will use intelligent agent applications as a starting point and project needs as the driver, continuously improving its “AI+” capability system, and focusing on promoting intelligent and inclusive AI applications.

At the same time, Agricultural Bank of China Vice President Lin Li, when discussing risk control measures, also said that the bank is currently strengthening technology empowerment, expanding new risk-control capabilities, and rolling out the “Agricultural Bank’s version of lobster.” Lin said plainly, “This is not about chasing trends. We are using this tool to automatically process and analyze data, and to intelligently generate due diligence reports, making the lending process more convenient, more efficient, and safer.”

Overall, AI applications in the banking industry have shown an accelerating momentum. Bank of China’s annual report shows that in 2025, based on three major platforms—computing power, technology, and data—it established two governance mechanisms that are agile, efficient, safe, and reliable. It built six typical application paradigms, including intelligent Q&A and report generation, under BOCAI large-model capability platform. It deployed series of large models such as DeepSeek and Qwen3, and built more than 400 intelligent assistants, enabling deep empowerment in key areas such as credit, marketing, operations, office work, customer service, and technology. At the earnings conference, President Zhang Hui said it will further build an “artificial intelligence +” financial ecosystem. China Construction Bank is also advancing AI application development in a systematic manner. Relevant technologies have scaled into 398 group scenario applications, deeply penetrating key areas such as wealth management, inclusive finance, risk management, and technology research and development.

In response, Gao Zhengyang said that the acceleration of “AI+ business” deep integration by state-owned banks indicates that the banking industry is rapidly making a deep shift toward intelligent operations. He noted that, from a trend perspective, AI is gradually being embedded into core business segments such as credit approval, wealth management, operations management, risk control, and marketing, significantly improving operational efficiency and decision accuracy. This transformation is expected to reshape financial service models, making them more personalized, real-time, and scenario-based, while effectively reducing marginal service costs. From the perspective of ecosystem building, cooperation between banks and technology companies and industrial platforms may become even closer. Financial services will be embedded more deeply into the industrial supply chains of the real economy, gradually forming a new ecosystem of finance, technology, and industry.

（Source: Beijing Business Today）