Agencies and staff reporter
Bank of China (3988) announced an interim dividend of 12.08 fen (13 HK cents), its first time to do so since listing in 2006, even as it reported a 1.2 percent dip in first-half net profit from a year ago.
The state-owned lender saw its net profit come in at 118.6 billion yuan for the first six months this year as margins deteriorated.
The move shows China's largest state banks are heeding calls from regulators to boost investor returns after markets sold off. Still, it adds further pressure on lenders, which have been called on to support the flagging economy and are struggling with record-low margins and bad loans.
BOC's net interest margin - an important gauge of profitability - was 1.44 percent in the first half, a decrease of 23 basis points compared with the same period of the prior year. Its non-performing loan ratio eased to 1.24 percent from 1.27 percent in December.
Big state lenders have flagged they were considering interim dividends. Their shares have surged to multi-year highs this year on payout bets as yields on the country's sovereign bonds have tumbled near record lows.
The Industrial and Commercial Bank of China (1398), China Construction Bank (0939) and Agricultural Bank of China (1288) report first-half earnings today.
BOC said Sunday that Liu Jin has stepped down as president, after more than three years in the job. Chairman Ge Haijiao will be acting president for the time being.
Combined profits at China's commercial lenders rose 0.4 percent in the first half, the slowest pace since 2020.
Separately, China Life Insurance (2628), the nation's largest life insurer by market share, said profit rose 5.9 percent to 38.3 billion yuan in the first half as an improving stock market boosted investment returns. It also declared its interim dividend of 0.2 yuan for the first time.
