Economics
ICBC, Bank of China Cut Dividend Payouts as Profit Growth Stalls
- Dividend payout ratios for lenders fall to 30% from 33%
- Both banks report 2015 profit growth of less than 1%
ICBC, Bank of China Profit Growth Stalls
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Industrial & Commercial Bank of China Ltd. and Bank of China Ltd., two of the nation’s largest state-controlled lenders, cut their dividend payout ratios for 2015 as profit growth stalled amid rising bad loans.
Net income at ICBC rose 0.5 percent to 277.1 billion yuan ($42.8 billion) last year while Bank of China reported a 0.7 percent profit gain, the Beijing-based lenders reported to the Hong Kong exchange on Wednesday. The percentage of profit they paid out as dividends fell to about 30 percent from 33 percent in 2014 as the two lenders sought to preserve capital.