① As listed banks increase the frequency of Dividends through mid-term payouts, investors can enhance their reinvestment opportunities. ② At the same time, the sustainability of bank Dividends has improved, sending a positive signal to the market, which is expected to boost confidence in the banks' capital management capabilities and financial health.
According to reports from Financial Link on December 10 (Reporter: Gao Ping), China CITIC Bank Corporation and Xiamen Bank Co., Ltd. are scheduled to distribute their mid-term Dividends on December 11 and 12, 2024, respectively. Additionally, Jiangsu Zijin Rural Commercial Bank has recently joined the ranks of banks announcing mid-term Dividend plans. According to incomplete statistics, as of the time of writing, the number of listed banks that have unveiled mid-term Dividend schemes has risen to 21, with a total cash payout of approximately 256.8 billion yuan. Among them, seven banks have completed their distribution.
Industry insiders told Financial Link reporters that in the future, small and medium-sized banks might push forward with specific mid-term Dividend plans considering actual conditions. Bank stocks have long been a benchmark sector for high Dividends, and implementing mid-term Dividends will further enhance the value of high dividend yields.
China CITIC Bank Corporation and Xiamen Bank Co.,Ltd. will distribute 'red envelopes' this week, with seven banks having completed their mid-term Dividend payouts.
According to the announcement disclosed by China CITIC Bank Corporation, the equity registration date for the mid-term cash Dividend of A-shares in 2024 is December 10, and the cash Dividend distribution date is December 11. This profit distribution is based on the total share capital of ordinary shares registered as of the equity registration date, with a cash Dividend of 0.1825 yuan per share (tax included) being distributed to all Shareholders, for a total cash payout of 9.873 billion yuan, of which 7.157 billion yuan (tax included) is distributed as cash Dividends for A shares.
The cash Dividend distribution date for Xiamen Bank Co.,Ltd. in 2024 is December 12. According to the announcement from Xiamen Bank, the equity registration date for the semi-annual profit distribution in 2024 is December 11, and the ex-dividend (interest) date is December 12. This profit distribution is based on the total share capital of the company before the plan implementation, with a cash Dividend of 0.15 yuan per share (tax included), totaling a payout of 0.396 billion yuan.
According to Wind statistics reported by Financial Link, prior to the announcement from China CITIC Bank Corporation, at least seven banks had completed their mid-term Dividend distributions, namely Agricultural Bank Of China, Ping An Bank, Bank Of Nanjing, Bank Of Hangzhou, MINSHENG BANK, Bank Of Suzhou, and Bank of Shanghai, with a total Dividend payout of 23.4 billion yuan.
On the evening of December 9, Jiangsu Zijin Rural Commercial Bank disclosed its profit distribution plan for the 2024 mid-term, marking another listed bank to release a mid-term profit distribution scheme. According to statistics, so far, at least 21 banks have announced their Dividend plans, with a total cash payout of 256.8 billion yuan. Including the upcoming cash distributions from China CITIC Bank Corporation and Xiamen Bank, there are still approximately 233.4 billion yuan in 'red envelopes' awaiting distribution.
In January 2025, many large banks including Industrial And Commercial Bank Of China, Agricultural Bank Of China, China CITIC Bank Corporation, and Postal Savings Bank Of China will distribute dividends, continuing to enhance the attractiveness of bank dividends.
Following China CITIC Bank Corporation and Xiamen Bank Co.,Ltd., the banks that have confirmed their dividend dates include Industrial And Commercial Bank Of China, Postal Savings Bank Of China, Agricultural Bank Of China, Chongqing Rural Commercial Bank, and Bank Of China. All five banks plan to distribute dividends in January 2025. Overall, in terms of dividend ratio, several banks that have disclosed their dividend plans have a ratio that reaches or exceeds 30%. For instance, the dividend ratio for Shanghai Rural Commercial Bank is 33.07%, and for Bank Of Nanjing it is 32%. Additionally, the dividend ratios for Industrial And Commercial Bank Of China, Agricultural Bank Of China, Bank Of China, China Construction Bank Corporation, and Bank Of Communications are also about or exceed 30%.
"Based on stable and sustainable operations, the listed companies are providing real returns to shareholders in cash, which genuinely enhances investors' sense of gains," said Zhou Maohua, an analyst in the financial markets department of China Everbright Bank, in an interview with Financial Associated Press. Against the backdrop of active dividends, optimistic expectations about the company's development prospects will promote a virtuous cycle of relationships between the company and its shareholders, helping to cultivate and strengthen the concept of long-term value investment in the market and promote high-quality development of Capital Markets.
Zhang Yu, an analyst from Huafu Securities, also stated that mid-term dividends from banks strengthen the high dividend investment logic of bank stocks, making stable cash-returning bank stocks more cost-effective for investment. As listed banks enhance the frequency of dividends through mid-term distributions, investors can increase their reinvestment opportunities. Moreover, the sustainability of the banks' dividends is being reinforced, releasing positive signals to the market, which is expected to boost confidence in the banks' capital management capabilities and financial health.
According to relevant data, in November, the banking Sector rose by 1.47%, outperforming the CSI 300 Index by 0.82 percentage points, ranking 13th among the 30 sectors in the first-tier industry classification by China CITIC. Analyst Yuan Zheqi from Ping An Securities noted that improved expectations have driven valuation recovery, continuing to focus on the dividend allocation value of bank stocks. If calculated based on the 2023 dividend amounts and the Market Cap on December 6, the average dividend yield of the Sector reached 4.45%, which is still at a historically high level compared to the risk-free rate represented by the 10-year treasury yield, and it continues to widen, maintaining the increasing attractiveness of dividends.
