Improving for 16 consecutive years! Behind the billion-yuan dividends is Industrial Bank's long-term confidence

Produced by | China Visitor Network

Reviewed by | Li Xiaoyan

As 2026 marks the start of the “14th Five-Year Plan,” looking back at the “13th Five-Year Plan,” Industrial Bank has delivered an impressive value report card with over 110k yuan in cumulative cash dividends, continuous optimization of operational quality and efficiency, and steadily rising market recognition. During the “13th Five-Year Plan,” the bank’s total dividends reached 106.9 billion yuan, with the dividend payout ratio in 2025 surpassing 30% for the first time to 31.02%, increasing the payout ratio for 16 consecutive years. Since listing, the bank has paid out over 200 billion yuan in dividends, more than twice the amount raised through common stock financing. This steady and robust shareholder return is rooted in a solid operational foundation, reflects its strategic focus on building a value-driven bank, and has laid a strong foundation for the comprehensive development of a first-class value bank during the “15th Five-Year Plan.”

In the capital markets, sustained and stable high dividends are a core label of quality bank stocks and an important confidence for long-term investors. In 2025, Industrial Bank paid dividends totaling 22.56 billion yuan, with a cumulative cash dividend of 1.066 yuan per 10 shares (tax included), ranking among the top in joint-stock commercial banks for both scale and ratio. Looking at the longer cycle, the 110.9k yuan dividends during the “13th Five-Year Plan” account for nearly half of the bank’s total dividends since listing, and this continuity and stability are quite rare in the banking industry.

The market responded positively to this stable dividend return. In 2025, the bank’s stock price increased by 15.04%, and its market value grew by 11.97%, leading the listed banks in terms of growth. More notably, over the past five years, major shareholders and medium- to long-term funds have collectively increased their holdings by over 2 billion shares. Key investors such as Fujian Provincial Department of Finance and Dajia Life Insurance have continued to add with “real money,” continuously optimizing the shareholding structure. This not only recognizes the bank’s operational capability but also demonstrates firm confidence in its long-term value, creating a virtuous cycle of “steady operation—high payout ratio—value recognition—capital support.”

The confidence behind high dividends mainly stems from continuously improving fundamental operations. In 2025, Industrial Bank achieved operating income of 212.74 billion yuan and net profit of 77.47 billion yuan, maintaining double growth for two consecutive years; total assets surpassed 11 trillion yuan, reaching 11.09 trillion yuan, ranking second among joint-stock banks. In an environment where net interest margins are narrowing and growth is under pressure, these achievements are due to precise operational strategies and strong risk management capabilities.

On the income side, the bank uses cost control and structural optimization to resist interest margin pressure. Facing industry-wide challenges, Industrial Bank focused on managing liability costs, with interest expense ratio down by 43 basis points year-on-year in 2025, and net interest margin maintaining a good level of 1.71% among peers. Net interest income has grown positively for three consecutive years. Meanwhile, the bank accelerated integration of “big investment banking, big asset management, big wealth,” with fee and commission income steadily increasing. Non-interest income has become a new engine for revenue growth, and the income structure is becoming more balanced.

On the asset side, the bank focuses on实体 (real economy) and retail, with a comprehensive upgrade of its business structure. During the “13th Five-Year Plan,” loans to manufacturing, green finance, and科技金融 (technology finance) grew by over 1x, 2x, and 3x respectively, closely aligned with national industrial strategies. Retail business achieved leapfrog development, with retail deposits increasing from 0.73 trillion yuan to 1.80 trillion yuan, ranking second among joint-stock banks; retail assets under management (AUM) surpassed 5.86 trillion yuan, and private banking scaled into the trillion-yuan club, breaking the traditional focus on corporate finance and interbank businesses, significantly enhancing resilience.

In terms of quality, risk mitigation and provisioning have been reinforced, with safety margins ample. By the end of 2025, the non-performing loan (NPL) ratio fell to 1.08%, down 0.17 percentage points from the start of the “14th Five-Year Plan”; the loan loss provision coverage ratio reached 228.41%, maintaining industry-leading risk buffer capacity. 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, with asset quality continuing to improve, providing a solid guarantee for profitability and dividends.

The impressive achievements of the “14th Five-Year Plan” have laid a solid foundation for the bank’s “15th Five-Year Plan” start. Standing at a new starting point, the bank clearly defines its strategic focus on “digitalization, green development, internationalization, comprehensive services, and ecological integration,” deepening产业金融 (industrial finance), and continuously enhancing its “four business cards” of科技金融 (technology finance),绿色金融 (green finance),财富银行 (wealth banking), and投资银行 (investment banking), aiming to build a first-class value bank.

The speed of digital transformation accelerates, moving from “Digital Industrial Bank” to “Smart Industrial Bank,” driven by AI technology to revolutionize operational and service efficiency; green development consolidates advantages, deepening carbon finance innovation and maintaining leadership in green finance; internationalization accelerates breakthroughs, seizing opportunities for企业出海 (enterprise overseas expansion), striving to rank among the top international business teams of joint-stock banks within two to three years; comprehensive services strengthen集团协同 (group collaboration), leveraging full licensing advantages to meet diverse customer needs; ecological integration deepens scene-based融合 (fusion), embedding financial services into产业 (industry) and生活 (life) full chains.

Meanwhile,产业金融 (industrial finance) remains the core focus, providing comprehensive financial services along the innovation chain, supply chain, and capital chain around a modern产业体系 (industrial system), nourishing new productive forces with financial vitality. The “four business cards” work synergistically:科技金融 (technology finance) loans lead among joint-stock banks, green finance remains a benchmark, wealth and investment banking scale steadily increase, forming differentiated competitive advantages.

Chairman Lü Jiajin of Industrial Bank stated, “The ‘15th Five-Year Plan’ will continue to prioritize strengthening operational fundamentals, solidify dividend and valuation foundations, and maintain focus on shareholder returns.” From the steady return of over 7.3k yuan in dividends during the “14th Five-Year Plan” to the strategic blueprint of building a first-class value bank in the “15th Five-Year Plan,” Industrial Bank always centers on value creation, balancing scale, quality, and efficiency, while considering shareholder returns and sustainable development.

For investors, the 16-year continuous increase in dividend payout ratio, ongoing improvement in operational quality, and clear strategic path constitute core long-term investment value support. For the industry, Industrial Bank’s practice also demonstrates that only by focusing on value, maintaining稳健 (steady) operation, and serving the实体 (real economy) can a bank remain stable and far-reaching in complex environments, achieving a harmonious unity of economic and social benefits.

Looking ahead to the “15th Five-Year Plan,” with the implementation of the “Five Transformations” strategy, deepening产业金融 (industrial finance), and continuously refining the “four business cards,” Industrial Bank is expected to achieve new breakthroughs in building a value-driven bank, contributing greater value to capital markets and the real economy through more稳健 (steady) operations, richer returns, and higher-quality services.