--- title: "Dividends Fail to Drive Premium; Valuation Divergence Among Listed Banks Worsens" type: "News" locale: "en" url: "https://longbridge.com/en/news/282906000.md" description: "Valuation enhancement plans released by six major state-owned banks failed to trigger a broad rally in the banking sector, instead exacerbating internal valuation divergence. Market capital has priced differently on bank profitability stability, asset quality, and development potential, leading to this phenomenon. As of April 15, 2026, ABC's price-to-book ratio neared 0.9, outperforming other major banks, while PSBC and BANKCOMM saw their PB ratios decline. Overall, all 42 A-share bank stocks traded below net asset value, with some banks having a PB ratio under 0.5" datetime: "2026-04-15T22:32:04.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/282906000.md) - [en](https://longbridge.com/en/news/282906000.md) - [zh-HK](https://longbridge.com/zh-HK/news/282906000.md) --- # Dividends Fail to Drive Premium; Valuation Divergence Among Listed Banks Worsens More than a year has passed since the six major state-owned banks collectively announced their valuation enhancement plans. These commitments, centered on stable operations and consistent dividend payouts, have not delivered a broad rally for the banking sector and have instead intensified valuation divergence within the industry. Industry insiders note that the differentiated choices made by market capital fundamentally reflect differing assessments of banks' profitability stability, asset quality, and growth potential. Capital favoring the "bond-like" attributes of bank stocks prefers those with steady earnings and solid asset quality, while investors seeking low valuations and stock price upside focus more on the earnings growth prospects of the banking sector. In March 2025, the six major banks jointly issued valuation enhancement plans, pledging to reward investors through stable operations and consistent dividends. As of April 15, 2026, ABC led the group with a price-to-book ratio approaching 0.9; China Construction Bank followed closely; Industrial and Commercial Bank of China, Bank of China, and PSBC all had PB ratios between 0.6 and 0.7; while BANKCOMM stood at just 0.54. Notably, compared to the time when the valuation enhancement plans were announced, the PB ratios of PSBC and BANKCOMM have actually declined rather than risen. In fact, valuation divergence is not limited to the major state-owned banks. As of April 15, all 42 A-share bank stocks traded below book value. Ningbo Bank, Hangzhou Bank, and China Merchants Bank had PB ratios above 0.9, while over ten other banks had PB ratios below 0.5. (China Securities Journal) ### Related Stocks - [03328.HK](https://longbridge.com/en/quote/03328.HK.md) - [601328.CN](https://longbridge.com/en/quote/601328.CN.md) - [601658.CN](https://longbridge.com/en/quote/601658.CN.md) - [601288.CN](https://longbridge.com/en/quote/601288.CN.md) - [01658.HK](https://longbridge.com/en/quote/01658.HK.md) - [01288.HK](https://longbridge.com/en/quote/01288.HK.md) - [159887.CN](https://longbridge.com/en/quote/159887.CN.md) - [512700.CN](https://longbridge.com/en/quote/512700.CN.md) - [512820.CN](https://longbridge.com/en/quote/512820.CN.md) - [517900.CN](https://longbridge.com/en/quote/517900.CN.md) - [516210.CN](https://longbridge.com/en/quote/516210.CN.md) - [515020.CN](https://longbridge.com/en/quote/515020.CN.md) - [512800.CN](https://longbridge.com/en/quote/512800.CN.md) - [601939.CN](https://longbridge.com/en/quote/601939.CN.md) - [00939.HK](https://longbridge.com/en/quote/00939.HK.md) - [601398.CN](https://longbridge.com/en/quote/601398.CN.md) - [01398.HK](https://longbridge.com/en/quote/01398.HK.md) - [601988.CN](https://longbridge.com/en/quote/601988.CN.md) - [03988.HK](https://longbridge.com/en/quote/03988.HK.md) - [002142.CN](https://longbridge.com/en/quote/002142.CN.md) - [600926.CN](https://longbridge.com/en/quote/600926.CN.md) - [600036.CN](https://longbridge.com/en/quote/600036.CN.md) - [03968.HK](https://longbridge.com/en/quote/03968.HK.md) - [02388.HK](https://longbridge.com/en/quote/02388.HK.md) - [BACHY.US](https://longbridge.com/en/quote/BACHY.US.md) ## Related News & Research - [Agricultural Bank of China Updates Final 2025 Dividend Details and Tax Treatment](https://longbridge.com/en/news/286169861.md) - [Agricultural Bank of China Raises RMB35 Billion with 2026 Tier 2 Capital Notes](https://longbridge.com/en/news/286107140.md) - [A Look At Bank of Communications (SEHK:3328) Valuation After Its First Quarter 2026 Earnings Release](https://longbridge.com/en/news/285981586.md) - [Agricultural Bank of China Shareholders Back 2025 Results and 2026 Investment Budget](https://longbridge.com/en/news/283835684.md) - [Bank of China Reaffirms Their Buy Rating on Postal Savings Bank of China Co., Ltd. Class H (1658)](https://longbridge.com/en/news/285319619.md)