Analysis of China Merchants Bank's 2025 Interim Dividend Plan and the Investment Value of Bank Stocks

Based on the above data, I will provide an in-depth analysis from multiple perspectives on the implications of China Merchants Bank’s substantial dividend payout for the investment value of bank stocks.

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Item	Data
Dividend Amount	Approximately RMB 25.548 billion (including tax)
A-Share Dividend	Approximately RMB 20.897 billion
Per-Share Dividend	RMB 1.013 (including tax)
Payout Ratio	35.02%
Record Date	January 15, 2026
Ex-Right/Payment Date	January 16, 2026
Total Share Capital	2.522 billion shares

China Merchants Bank official announcements and JRJ.com data [0][1]

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China Merchants Bank has maintained a high-proportion dividend policy for a long time. From historical data, the 2024 per-share dividend was RMB 2, with a total annual dividend of RMB 50.44 billion and a dividend yield of approximately 5.7% [1]. This interim dividend continues the payout ratio of around 35%, reflecting the company’s high emphasis on shareholder returns.

2025 marks the first time China Merchants Bank has implemented an interim dividend, which carries important strategic significance:

• Aligns with policy guidance
  : Complies with the requirement of “enhancing the stability, sustainability, and predictability of dividends” proposed in the State Council’s Several Opinions on Strengthening Supervision, Preventing Risks, and Promoting High-Quality Development of the Capital Market [3]
• Improves timeliness of investor returns
  : Compared with annual dividends, interim dividends allow investors to receive cash returns earlier
• Enhances dividend attractiveness
  : In the current low-interest rate environment, high-frequency dividend payments significantly improve the investment appeal of bank stocks

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Indicator	Figure	Industry Comparison
Price-to-Earnings Ratio (P/E)	7.01x	Below industry average
Price-to-Book Ratio (P/B)	0.81x	Near breaking net asset value
ROE (Return on Equity)	12.09%	Leading in the industry
Net Interest Margin (NIM)	1.98%	Facing narrowing pressure

Jinling API Market Data [0]

As of the end of 2024, China Merchants Bank’s key financial indicators demonstrate its excellent operational quality:

• Total Assets
  : Exceeded RMB 12.15 trillion [1]
• Customer Deposits
  : Reached RMB 9.10 trillion, representing a year-on-year increase of 11.54%
• Non-Performing Loan Ratio
  : Only 0.95%, ranking among the best in the industry
• Provision Coverage Ratio
  : Exceeds 450%, providing sufficient risk resistance capacity
• Common Equity Tier 1 Capital Adequacy Ratio
  : Maintained above 12%, with sufficient capital

These data indicate that China Merchants Bank has a solid financial foundation for sustained high dividend payouts, and its excellent asset quality provides a reliable guarantee for profit release.

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As of December 2025, more than 20 A-share listed banks have implemented or disclosed interim dividend plans, with a total proposed dividend amount exceeding RMB 260 billion [3].

Bank Type	Dividend Characteristics
Big Six State-Owned Banks	Total dividends of approximately RMB 204.6 billion, maintaining a 30% payout ratio [3]
Joint-Stock Banks	Followed by CMB, CITIC, Minsheng, etc., with payout ratios ranging from 30% to 35% [3]
City Commercial Banks/Rural Commercial Banks	Actively responded, with varying payout ratios [3]

Bank	Per-Share Dividend (RMB)	Total Dividend (RMB billion)	Payout Ratio
Industrial and Commercial Bank of China (ICBC)	0.1414	50.396	Approximately 30%
China Construction Bank (CCB)	0.1858	48.605	Approximately 30%
Agricultural Bank of China (ABC)	0.1195	41.823	30%
China Merchants Bank (CMB)	1.013	25.548	35%
Bank of China (BOC)	0.1094	35.250	30%
Bank of Communications (BOCOM)	0.1563	13.811	31.2%

CCTV Finance and official announcements of major banks [3]

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According to China Galaxy Securities data, as of December 12, 2025:

• Overall Dividend Yield of Banking Sector
  : 4.64%, ranking second among all industries [3]
• China Merchants Bank’s Dividend Yield
  : Approximately 5.7%, significantly higher than the 4.5% average of big state-owned banks [1]
• Comparison Benchmark
  : The 5-year deposit interest rate is only 1.3%, giving bank dividend yields a clear advantage

Implication

: In a low-interest rate environment, the high-dividend characteristics of bank stocks have strong appeal to long-term capital such as insurance funds and pension funds.

Indicator	Banking Sector	All A-Shares	Discount Rate
Price-to-Book Ratio (P/B)	0.69x	1.79x	38.55%

China Galaxy Securities Research Report [3]

Current valuations of bank stocks are at historically low levels. Combined with the three positive factors of

+ + , the potential for valuation repair is clear.

sends the following signals:

1. Regulatory Encouragement
   : Policies clearly support “multiple dividends per year, advance dividends, and dividends before the Spring Festival” [3]
2. Stable Bank Earnings
   : Although net interest margins face narrowing pressure, growth in non-interest income has offset some of the impact
3. Slower Capital Consumption
   : The implementation of the new capital management regulations has further expanded banks’ dividend payout space

, believes that high dividend payouts by commercial banks are expected to continue and have room for growth [3].

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Advantage	Explanation
Top-Tier Asset Quality	Non-performing loan ratio of 0.95%, provision coverage ratio exceeding 450%, setting an industry benchmark
Leading Payout Ratio	35% payout ratio, higher than the 30% ratio of big state-owned banks
Valuation Repair Potential	P/B ratio of 0.81x, below historical average
Attractive Dividend Yield	Dividend yield of approximately 5.7%, ranking among the top of large banks

• Sustained Narrowing of Net Interest Margins
  : Banks generally face pressure on net interest margins, which may affect future earnings growth
• Economic Cycle Fluctuations
  : Bank asset quality is highly correlated with the macroeconomy
• Timing of Valuation Repair
  : Although there is potential for valuation repair, the timing is uncertain

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China Merchants Bank’s substantial dividend payout has the following

for the investment value of bank stocks:

1. Bank stocks remain high-quality targets for dividend investment
   : CMB’s 5.7% dividend yield has significant allocation value in the current market environment, especially suitable for long-term investors seeking stable cash flow.
2. The trend of regular interim dividends is established
   : From the first collective implementation of interim dividends in 2024 to the expansion to more than 20 banks in 2025, high-frequency dividend payments are becoming the new normal for the banking sector, which will continue to enhance the dividend appeal of bank stocks.
3. High-quality banks have greater investment value
   : With its excellent asset quality (non-performing loan ratio of only 0.95%), higher payout ratio (35% vs. 30% for big state-owned banks), and more stable earnings growth, CMB has obvious alpha characteristics among bank stocks.
4. Dual support from valuation bottom and dividend bottom
   : The current P/B ratio of the banking sector is only 0.69x, at a historically low level. Combined with sustained high dividend payouts, bank stocks have limited downside risk and promising upside potential.

Overall

: CMB’s dividend payout not only reflects its operating philosophy of rewarding shareholders but also provides strong endorsement for the investment value of bank stocks. For investors seeking stable returns and preferring dividend strategies, China Merchants Bank and the entire banking sector still have medium-to-long-term allocation value.

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[0] Jinling API Market Data - China Merchants Bank (600036.SS) Company Profile and Real-Time Quotes

[1] JRJ.com - Announcement of Implementation of China Merchants Bank’s 2024 A-Share Dividend Payout (https://m.jrj.com.cn/madapter/bank/2025/07/03182951465280.shtml)

[2] China Merchants Bank Co., Ltd. - Announcement of 2025 Half-Year Profit Distribution Plan (https://stockmc.xueqiu.com/202512/600036_20251230_IZAK.pdf)

[3] CCTV Finance - ICBC, ABC, BOC, CCB, BOCOM, PSBC and Other Banks Announce Dividend Plans (https://finance.cctv.com/2025/12/17/ARTIm7AWeCF0TW5s3kMQKEen251217.shtml)

[4] Huxiu - Expansion of Interim Dividends: Big Six Banks Pay Out RMB 204.6 Billion in Dividends (https://m.huxiu.com/article/4765498.html)

[5] Xueqiu - Analysis of China Merchants Bank’s 2025 Investment Value (https://xueqiu.com/1088154788/334809421)