HONG KONG, March 29, 2026, 18:21 HKT
China Construction Bank (0939.HK), trading in Hong Kong, posted a 1% increase in net profit for 2025 on Friday—coming in ahead of what analysts had penciled in, despite a slimmer core lending margin. The bank also put forward a final cash dividend proposal: 2.029 yuan for every 10 shares. 1
The report comes as China’s major state-owned banks contend with a drawn-out property downturn and weaker economic expansion. In Hong Kong, investors are also eyeing potential rule adjustments that might unlock new capital routes for lenders. CCB closed Friday at HK$8.09, up 1%. The Hang Seng Mainland Banks Index added 0.6%. 2
Profit hit 338.906 billion yuan ($49.04 billion), topping the 334.40 billion yuan analysts had penciled in, according to LSEG. Net interest margin edged down, landing at 1.34% by December’s close compared with 1.36% at the end of the prior quarter. As for the non-performing loan ratio, that ticked lower—1.31%, just below the previous 1.32%. 1
CCB reported a 1.69% uptick in operating revenue, reaching 740.871 billion yuan, while total assets climbed 12.47% to 45.63 trillion yuan. The bank’s proposed final dividend would bring total cash payouts for the year to 3.887 yuan per 10 shares, or roughly 101.684 billion yuan—translating to a 30% cash dividend ratio. 3
Peers echoed the same cautious outlook. Industrial and Commercial Bank of China’s profit for 2025 barely budged, up less than 1%. Bank of Communications managed a 2.2% increase. The sluggish pace highlights just how tough it is for China’s major banks to push earnings higher while the property slump persists. 4
Policy shifts are also coming into play. Reuters said this week that China’s banking regulator may allow certain big investors to own stakes of 5% or more in one or two extra banks, an effort to open up more funding options. Shares of CCB, ICBC, and Postal Savings Bank of China jumped over 1% in Hong Kong following the news. 2
Looking to 2026, analysts are zeroing in on funding costs rather than loan growth. “Deposit repricing will be the main driver” of any pickup in bank profits, according to Zhang Yiwei at China Galaxy Securities. Around 54 trillion yuan in time deposits—fixed-term accounts—are set to mature and renew at lower rates, potentially giving earnings a lift. 5
Still, the outlook remains fragile. Moody’s banking analyst Nicholas Zhu cautioned that a spike in oil prices or more political turmoil tied to the Middle East conflict “would lead to a more challenging operating environment” for Chinese banks. Investors, for now, want to see evidence that cheaper funding and any relaxation of ownership limits can balance out the drag from thinner loan margins and continued property-sector stress. 4
