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Bank of America Securities: Agricultural Bank Of China’s profit growth and provisions coverage ratio lead the industry, reiterating the "Buy" rating.
Bank of America Securities released a Research Report stating that Agricultural Bank Of China (01288) is expected to see a 4.7% year-on-year increase in net profit in 2024, reaching 282.1 billion yuan, which is 3.8% higher than the bank's previous forecast. The dividend per share is projected to grow 4.8% year-on-year to 24.2 cents, with the Listed in Hong Kong dividend ROI reaching 5.5%. Considering that Agricultural Bank performs better than its peers in terms of profit growth and provision coverage ratio, Bank of America Securities reaffirms a Buy rating for the bank and raises the profit forecast for 2025 to 2026 by 0% to 4%, while lowering the cost of equity (COE) forecast by 50 basis points to 14%.
Agricultural Bank of China Logs Higher Profit, Revenue in 2024
[Brokerage Focus] Citi: The large state-owned banks' private placement of A-shares helps alleviate net interest margin pressure, but is more Bullish on joint-stock banks.
Jinwu Financial News | Citigroup's Research Reports indicate that the Private Placement of shares by Bank Of China (03988), Postal Savings Bank Of China (01658), China Construction Bank Corporation (00939), and Bank Of Communications (03328) will help alleviate net interest margin pressure and restore lending capacity. This round of Refinancing will respectively raise the core Tier 1 capital adequacy ratios (CET1) of CCB, BOC, PSBC, and BOCOM to 15%, 13.1%, 11.5%, and 11.1%, and will dilute the existing Shareholders' equity to 4.3%, 8.5%, 15.6%, and 17.2%, but will only affect the dividend yield starting from 2025.
China's Big State Banks to Get $71.6 Billion Capital Injection
【Brokerage Focus】CITIC SEC expects that the Banks' performance in Q1 2025 will be the lowest point of the year, with the subsequent trend likely to rise.
According to CITIC SEC, the annual reports released by listed Banks show that in Q4 2024, the revenue and profit growth of listed Banks continued to improve. Analyzing the operational factors, while the Industry's pace of asset expansion in 2024 is converging, the decline in interest margin is also narrowing. Although the annual non-interest income is still decreasing, the decline in Q4 2024 has significantly narrowed, and in the context of a strengthening bond market, trading revenues continue to remain positive. Regarding asset quality, the overall non-performing loan ratio of listed Banks continues to improve, and their risk resilience remains robust. Looking ahead, the interest margin for listed Banks in Q1 2025 is still expected to decline due to the revaluation of existing loans, while investment income may fluctuate due to market influences but is anticipated to be stable.
The Ministry of Finance actively supports the large state-owned commercial Banks in replenishing their core Tier 1 capital.
① The Ministry of Finance will issue the first batch of 500 billion yuan special government bonds in 2025, which will be used to support the Bank Of China, China Construction Bank Corporation, Bank Of Communications, and Postal Savings Bank Of China in replenishing their core Tier 1 capital; ② Currently, state-owned large commercial banks are operating steadily, with stable asset quality and sufficient provisions. Supplementing capital through special government bonds will enhance their robust operational capability, promote high-quality development, and better serve the real economy.
104255742 : but why is it not buying back its own shares?
Mr Worldwide 世界仔 OP 104255742 : debt to equity at 1.3, it has limited room to take on more debt. it is not worth to repurchase its stock which main business is insurance.