The A-share banking sector strengthened, with a proposed interim dividend exceeding 260 billion yuan
The A-share banking sector rose against the trend today, with Industrial and Commercial Bank of China, China Construction Bank, and Bank of China collectively setting new historical records for their stock prices. Industrial and Commercial Bank of China reached a peak of 8.51 yuan during trading, with its market value briefly surpassing 3 trillion yuan, while China Construction Bank and Bank of China also hit new highs since their listings.So far, 21 A-share listed banks have disclosed their mid-term dividend plans for 2026, with a total proposed dividend exceeding 260 billion yuan. The six major banks have unified their dividend payout ratio, increasing from last year's 30% to 31%, with a total proposed dividend of approximately 221 billion yuan. Industrial and Commercial Bank of China leads with 53.853 billion yuan, followed by China Construction Bank, Agricultural Bank of China, and Bank of China with proposed dividends of 52.582 billion yuan, 45.393 billion yuan, and 38.343 billion yuan, respectively. Fifteen banks have increased their dividend ratios compared to last year, with Shanghai Rural Commercial Bank leading at 34.07%. Currently, seven banks, including Ruifeng Bank, Minsheng Bank, and Chengdu Bank, have completed their dividend payouts, totaling approximately 18.9 billion yuan.Market analysis suggests that high dividends and expectations for mid-term dividends are important driving forces behind this round of increases. Based on the latest stock prices, among the 42 A-share banks, 27 have dividend yields above 3%, with Bank of Communications and Postal Savings Bank at 4.32% and 4.22%, respectively, significantly higher than current deposit rates and the average annualized returns of wealth management products.