ICBC President Confident Net Interest Margin Will Stabilize in 2026; Interim Payout Ratio Raised
Industrial and Commercial Bank of China raised its interim dividend payout ratio in the first half, citing improved fee-based income alongside credit growth. Board Secretary Tian Fenglin said the higher payout responds to investor demand. The president expressed confidence that the net interest margin will stabilize in 2026, as deposit repricing has helped curb the decline in funding costs across major state-owned banks.
In the first half, the net interest margins of major state-owned banks broadly halted their decline, partly due to deposit repricing that lowered funding costs. ICBC increased its interim dividend distribution and raised its payout ratio. Board Secretary Tian Fenglin noted that the bank has responded to market changes, with growth in credit business and a recovery in fee-based income supporting the dividend base, while the higher payout ratio primarily addresses investor demand. The president expressed confidence that the net interest margin will stabilize in 2026.