CCB, Bank of China hit record highs on 31% dividend payout

CCB and Bank of China hit record highs after H1 results beat, with dividend payout raised to 31 percent.

"The 2Q results of state-owned Chinese banks beat market expectations, while interim dividend payout ratios were raised by 1 percentage point — the first increase in regular payout ratios since listing," JPMorgan said in a report.

CCB reported H1 revenue of 436.53 billion yuan (approximately $65 billion), up 10.72 percent year-on-year, with net profit attributable to shareholders of 169.56 billion yuan, up 4.62 percent. Net interest margin rose to 1.37 percent, up 3 basis points from full-year 2025, driving net interest income up 8.46 percent to 310.96 billion yuan. The bank proposed an interim dividend of 2.010 yuan per 10 shares, totaling approximately 52.58 billion yuan.

CCB shares rose 3.39 percent to HKD9.45, while Bank of China gained 5.29 percent to HKD5.87. JPMorgan maintained Overweight ratings with target prices of HKD10.1 for CCB and HKD6.15 for BOC. Citi said the first-half results of BOC, CCB, PSBC, and Bank of Ningbo topped forecasts, with the higher payout ratios the key positive factor.

The non-performing loan ratio edged down to 1.29 percent from end-2025, with provision coverage at 238.69 percent and core Tier 1 capital adequacy at 14.24 percent. Total assets reached 47.33 trillion yuan, up 3.72 percent from end-2025, with deposits absorbing 31.82 trillion yuan, up 3.19 percent. The deposit cost rate fell 29 basis points year-on-year to 1.11 percent.

Net interest income remained the dominant revenue driver, accounting for 72.94 percent of operating income. Non-interest net income grew 16.31 percent to 115.38 billion yuan, with net fee and commission income down 1.42 percent to 64.29 billion yuan. Other non-interest net income jumped 50.35 percent to 51.09 billion yuan, driven by higher net gains on investment securities.

By credit segment, personal consumption loans grew 14.59 percent and personal business loans rose 10.57 percent, while personal housing loans fell 2.23 percent from end-2025. Manufacturing loan growth reached 17.95 percent, and green loan balances surpassed 6.53 trillion yuan. Inclusive small and micro enterprise loan balances reached 4.09 trillion yuan, up 6.89 percent.

The payout ratio increase marks the first rise in regular dividends since listing for these banks, a positive for shareholder returns. Investors will watch whether other state-owned lenders follow suit in their interim reports, and whether payout ratios move toward Citi's 40 percent expectation.

This article is for informational purposes only and does not constitute investment advice.