The first bank with 50 trillion! Exclusive coverage of ICBC's earnings conference: earning over 1 billion daily, with dividends exceeding 110.5 billion

This article is sourced from: Times Weekly Author: Liu Ziqi

Industrial and Commercial Bank of China 2025 Annual Performance Meeting Times Weekly Reporter Photo

On the evening of March 27, the Industrial and Commercial Bank of China (601398.SH; 01398.HK) released its 2025 annual performance report. In 2025, the bank achieved operating income of 838.27 billion yuan, a year-on-year increase of 2.0%; net profit attributable to shareholders was 368.56 billion yuan, a year-on-year increase of 0.7%, with an average daily profit exceeding 1 billion yuan.

On the same day, the Industrial and Commercial Bank held its 2025 annual performance press conference, attended by President Liu Jun, Vice President Yao Mingde, and Board Secretary Tian Fenglin. In summarizing the bank’s performance for 2025, Liu Jun stated, “Our operational efficiency has steadily improved, profitability resilience continues to strengthen, and core profitability indicators such as operating income, net fee and commission income, pre-provision profit, and net profit have all achieved positive growth.”

Liu Jun further pointed out, “Our bank has not relaxed its pursuit of operational efficiency and development quality due to its large scale. In 2025, we have maintained a favorable operational trend along the path of financial development with Chinese characteristics.”

The world’s first commercial bank with assets exceeding 50 trillion yuan

As of the end of 2025, the total assets of the Industrial and Commercial Bank reached 53.48 trillion yuan, an increase of 9.5% from the end of the previous year, making it the world’s first bank to surpass 50 trillion yuan in asset size.

In 2025, the Industrial and Commercial Bank’s operating income grew by 2.0% year-on-year, reversing the previous three-year downward trend. Liu Jun stated at the performance meeting, “Achieving positive revenue growth under the pressure of the macroeconomic environment and the continued narrowing of interest margins presents certain challenges.”

On the structural side, the bank achieved net interest income of 635.13 billion yuan, a year-on-year decrease of 0.4%; non-interest income was 203.14 billion yuan, a year-on-year increase of 10.2%. Among these, net fee and commission income was 111.17 billion yuan, a year-on-year increase of 1.6%, reversing the previous negative growth trend; other non-interest income was 91.97 billion yuan, a year-on-year increase of 22.6%.

In 2025, the Industrial and Commercial Bank’s net interest margin was 1.28%, down 0.14 percentage points from the beginning of the year. Liu Jun emphasized, “The decline in net interest margin has narrowed quarter by quarter, showing a stabilizing trend overall.”

Looking ahead to 2026, Vice President Yao Mingde stated that while the net interest margin remains in a downward channel, the rate of decline continues to converge; if we do not consider significant adjustments to the LPR or deposit benchmark rates, it is expected that annual net interest income will turn positive year-on-year, marking an inflection point, with the decline in net interest margin further narrowing compared to 2025. “Our bank predicts that the interest margin will likely show an L-shaped trend in 2026,” Yao Mingde stated.

In addition, Yao Mingde pointed out that the last adjustment of the LPR was in May 2025, and the related impacts have been fully released; since 2026, our bank’s new issuance rates for corporate loans, personal housing loans, and personal business loans have stabilized. “Although there is still a possibility of LPR adjustment downward this year, loan yields may continue to decline, but the rate of decline will continue to narrow.”

Regarding the operational outlook for 2026, Liu Jun stated that the current external situation is complex and changeable, and the operational development in 2026 remains challenging. The Industrial and Commercial Bank will build on the solid operational foundation of 2024-2025, continuing to enhance diversified and comprehensive service capabilities, demonstrating the development standards of a world-class financial institution.

Industrial and Commercial Bank of China President Liu Jun Times Weekly Reporter Photo

Dividend scale reaches a historic high

In terms of asset quality, as of the end of 2025, the Industrial and Commercial Bank’s non-performing loan ratio was 1.31%, down 0.03 percentage points from the beginning of the year, maintaining a downward trend for five consecutive years; the provision coverage ratio was 213.60%, down 1.31 percentage points from the beginning of the year, ensuring a sound risk resistance capacity.

Industrial and Commercial Bank Vice President Wang Jingwu stated at the performance meeting that the bank’s personal loan asset quality has long been excellent, but in the past two years, factors such as economic transformation, real estate market adjustment, and temporary supply-demand imbalances have caused a short-term rise in the non-performing loan ratio, consistent with the overall trend of the industry.

Wang Jingwu further stated, “China’s economic fundamentals are solid, resilient, and full of potential, and the long-term positive fundamentals have not changed. The overall risk of personal loan assets is controllable.”

In terms of capital strength, as of the end of 2025, the Industrial and Commercial Bank’s capital adequacy ratio was 18.76%, the Tier 1 capital adequacy ratio was 14.94%, and the core Tier 1 capital adequacy ratio was 13.57%, with Tier 1 capital net worth ranking first in the global banking industry for 13 consecutive years.

Regarding core Tier 1 capital replenishment, Tian Fenglin stated that the 2026 “Government Work Report” proposes to issue 300 billion yuan in special government bonds to support large state-owned banks in replenishing capital, with specific arrangements to be confirmed by the bank’s official announcement.

It is worth noting that in 2025, the Industrial and Commercial Bank’s cash dividend scale reached a historic high, maintaining its position at the top of the A-share market dividend list. According to the announcement, the bank’s board of directors proposed a cash dividend of 1.689 yuan (including tax) per 10 shares for the year-end of 2025, with a total expected payout of 60.197 billion yuan; combined with the interim dividend, the total annual payout will be 3.103 yuan (including tax) per 10 shares, with a total cash dividend of 110.593 billion yuan.

According to Tian Fenglin, since its listing in 2006, the Industrial and Commercial Bank has cumulatively distributed 1.58 trillion yuan in cash dividends to shareholders, with a dividend payout ratio maintained above 30% for many years. Starting in 2024, the bank will optimize its dividend mechanism, implementing both interim and annual dividends to further enhance the investor return experience.

Tian Fenglin stated, “In 2025, our A-share and H-share stock prices rose by 14.6% and 20.7%, respectively, corresponding to average dividend yields of 4.22% and 5.99%, significantly higher than the same period’s fixed deposit rates and ordinary financial product yields, demonstrating outstanding long-term investment value.”

Liu Jun added that the Industrial and Commercial Bank’s capital size ranks first in the global banking industry, and changes in capital levels serve as a market benchmark. In terms of price-to-book ratio and dividend return rate, the bank’s investment return rate significantly exceeds similar investments and financial products, highlighting its investment value.

Liu Jun stated, “Our bank will dynamically optimize capital planning and dividend arrangements in line with market conditions, based on the long-term steady development needs of the capital market. If there is a demand in the market to increase the dividend rate, our bank will respond positively and truly meet market expectations.”