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

Ask AI · Which business innovations underpin Industrial Bank’s conviction for increasing dividend payouts for 16 consecutive years?

Produced by | China Interview Network

Reviewed by | Li Xiaoyan

In 2026, the opening year of the “15th Five-Year Plan,” looking back on the “14th Five-Year Plan,” Industrial Bank has delivered an impressive value report—supported by cumulative cash dividends exceeding one trillion yuan, continuously optimizing operating efficiency and quality, and steadily rising market recognition. During the “14th Five-Year Plan” period, the bank’s cumulative dividends reached RMB 106.9 billion. In 2025, the dividend payout ratio first broke through 30% to 31.02%, marking 16 consecutive years of increasing the dividend payout ratio. Since going public, cumulative dividends have exceeded RMB 200 billion, more than double the total amount of ordinary shares 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-oriented bank through long-term dedication—laying the groundwork for the comprehensive construction of a first-class value bank in the “15th Five-Year Plan.”

In capital markets, consistent and stable high dividends are the core hallmark of quality bank stocks, and an important source of confidence for investors to hold long term. In 2025, Industrial Bank distributed RMB 22.56 billion in dividends for the full year. On every 10 shares, cumulative cash dividends were RMB 10.66 (including tax). Both the scale and the ratio of dividends were among the top positions among joint-stock commercial banks. When viewing the longer cycle, the “14th Five-Year Plan” period’s trillion-yuan dividends account for nearly half of the bank’s total dividend amount since listing—this kind of continuity and stability is truly rare in the banking industry.

The market has responded positively to the stable dividend return. In 2025, Industrial Bank’s stock price rose 15.04%, and its market capitalization increased 11.97%, with the gains leading the listed bank peer group. Even more worth noting is that over the past five years, major shareholders and long-term funds have cumulatively increased holdings by more than 2 billion shares. Key investors such as the Fujian Provincial Department of Finance and People’s Insurance Company of China continued to add to their positions with “hard cash.” The equity structure has continued to improve. This is both recognition of Industrial Bank’s operating capability and a firm bet on its long-term value, forming a virtuous cycle of “steady operations—high dividend payout—value recognition—capital support.”

The confidence behind high dividends primarily comes from continuously improving operating fundamentals. In 2025, Industrial Bank achieved operating income of RMB 212.74B and net profit of RMB 77.47B, maintaining double growth for two consecutive years. Total assets surpassed the RMB 1.1 trillion threshold to reach RMB 1.109 trillion, ranking second among joint-stock commercial banks. In an environment where industry net interest margins have narrowed and growth pressure has increased, this performance is attributable to its precise operating strategy and deep risk-control capabilities.

On the income side, it fends off net interest margin pressure through cost control and structural optimization. Faced with industry-wide common challenges, Industrial Bank focuses on managing the cost of liabilities. In 2025, the cost of interest-bearing liabilities fell by 43 basis points year over year, while the net interest margin remained at a relatively strong peer level of 1.71%. Net interest income has continued to grow positively for three consecutive years. At the same time, it accelerates the integration of “major investment banking, major asset management, and major wealth management.” Net fee and commission income rose steadily, with intermediary business becoming a new engine for income growth, and the income structure becoming more balanced.

On the asset side, it focuses on supporting the real economy and retail, with a comprehensive upgrade of its business structure. During the “14th Five-Year Plan” period, the bank’s loans to the manufacturing industry, green finance, and technology finance grew by more than 1 time, 2 times, and 3 times respectively, deeply aligning with national industrial strategies. Retail business achieved a breakthrough, with retail deposits rising from RMB 0.73 trillion to RMB 1.80 trillion, moving to second place among joint-stock banks. Retail AUM surpassed RMB 5.86 trillion, and its private banking scale entered the trillion-yuan club. This has broken the traditional business pattern dominated by corporate finance and interbank business, significantly enhancing development resilience.

On the quality side, risk is contained and provisions are strengthened, providing a sufficient safety cushion. At the end of 2025, the non-performing loan ratio fell to 1.08%, down 0.17 percentage points compared with the start of the “14th Five-Year Plan” period. Provision coverage reached 228.41%, and its risk coverage capability remained at excellent industry levels. New 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 has continued to improve, providing solid protection for profitability and dividends.

The standout achievements of the “14th Five-Year Plan” have laid a solid foundation for the “15th Five-Year Plan” launch of Industrial Bank. Starting from a new starting point, the bank has clearly defined that it will take “digital and intelligent, green, international, comprehensive, and ecological” as strategic leadership, deepen industrial finance, and continue to polish its four cards: technology finance, green finance, wealth banking, and investment banking, to build a first-class value bank in an all-round way.

With the acceleration of digital and intelligent transformation, it is moving from “Digital Industrial Bank” to “Smart Industrial Bank,” using AI technology to drive 혁신 in business operations and service efficiency ；Greening consolidates advantages, deepening carbon finance innovation and maintaining a leading position in green finance ；Internationalization accelerates breakthroughs, seizing opportunities for enterprises going global, and striving to rank among the first tier of international business players among joint-stock banks within two to three years ；Comprehensiveness strengthens group synergy, using its full-licenses advantage to meet customers’ diverse needs ；Ecological development deepens scenario integration, embedding financial services into the entire chain of industries and everyday life.

At the same time, deepening industrial finance as the core focus, it provides integrated financial services around the modern industrial system—along the innovation chain, supply chain, and capital chain—to nurture new quality productive forces with streams of financial capital. The four cards work together with coordinated efforts: technology finance loans lead among joint-stock banks; the benchmark position in green finance remains solid; the scale of wealth management and investment banking steadily climbs, forming differentiated competitive advantages.

Industrial Bank’s Chairman, Lü Jiajin, stated that in the “15th Five-Year Plan,” it will continue to strengthen and optimize its operating fundamentals, and to solidify the foundation for dividends and valuation—while placing the same emphasis on shareholder returns as always. From the steady reward of trillion-yuan 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 centered on value creation, balancing scale, quality, and efficiency, and taking into account both shareholder returns and its own sustainable development.

For investors, the core value support for long-term investment is provided by the dividend payout ratio that has been increased for 16 consecutive years, the continuously optimized operating efficiency and quality, and the clear strategic path. For the industry, Industrial Bank’s experience also confirms that only by deeply cultivating value, operating steadily, and serving the real economy can it go further in a complex environment—achieving the organic unification of economic benefits and social benefits.

Looking ahead to the “15th Five-Year Plan,” as the “five hives” 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 development—delivering more steady operations, more generous returns, and better-quality services, and contributing greater value to both capital markets and the real economy.