Valuation Divergence Among 42 Bank Stocks After 2026 Interim Reports: Big Six Average P/E Ratio Rises to
One week after the release of 2026 interim reports, valuation divergence among 42 listed bank stocks has become evident. The six largest state-owned banks raised dividend payout ratios, with Postal Savings Bank increasing from 30% to 33%. Their average AH price-to-book ratio climbed to 1.27PR from about 0.5PR before the China Special Valuation rally. Joint-stock banks kept payouts stable, while city and rural commercial banks showed mixed moves, including Jiangyin Bank's payout rising from 26% to 31%.
One week has passed since the conclusion of interim report disclosures, and the valuation landscape for 42 listed bank stocks has been updated accordingly. Across various bank categories, adjustments in dividend payout ratios show a certain correlation with share price movements.
The six largest state-owned banks generally raised their dividend payout ratios in the latest interim reports. Among them, Postal Savings Bank increased its payout ratio from 30% to 33%. Meanwhile, the average valuation of the six banks' A-share and H-share listings has shifted markedly, rising from approximately 0.5PR before the start of the China Special Valuation rally to around 1.27PR this week.
Joint-stock banks kept their dividend payout ratios stable in the interim reports, with no notable adjustments, and their share price gains were generally limited. China Merchants Bank's H-shares stood out as an exception, posting a relatively strong recent advance and becoming the only bank stock among the two markets with a negative AH premium. Before the China Special Valuation rally, the average valuation of joint-stock banks' AH shares was about 0.5PR; this week, it has risen to around 0.96PR.
Among city commercial banks, only Bank of Hangzhou raised its dividend payout ratio after the interim reports, yet its share price performance did not significantly outpace the broader banking sector. Some city commercial banks still trade at relatively low valuations. Bank of Chengdu and Bank of Jiangsu are both challenging their previous highs, with an average valuation of approximately 0.7PR. Before the China Special Valuation rally, the average valuation of city commercial banks' AH shares was about 0.5PR; this week, it has climbed to around 0.95PR.
Among rural commercial banks, Jiangyin Bank increased its dividend payout ratio from 26% to 31%, a rise of 5 percentage points, making it the only bank in this category to adjust its payout. Previously, the overall dividend payout ratio for rural commercial banks was generally below the industry average of 30%. Before the China Special Valuation rally, the average valuation of rural commercial banks' AH shares was about 0.5PR; this week, it has risen to around 1PR.