① According to statistics from the Financial Services Association, the six major banks will first reach 410 billion yuan in dividends this year, reaching another record high. Judging from this year's data, many banks already have dividend rates above 30%. ② At this year's results conference, a number of bank executives also responded positively to issues such as dividend rates, and all said they wanted to strengthen investor returns.
Financial Services Association, March 29 (Reporter Peng Kefeng) The dividend situation of a listed company can reflect the company's investment value and future development prospects from one side.
By the evening of March 28, the 2023 annual reports of the six major state-owned banks were all released. A CFA reporter found this morning's statistics that the six major banks will pay out 410 billion yuan for the first time this year, another record high. Since 2018, the six major state-owned banks have surpassed the 300 billion yuan mark in cash dividends for 5 consecutive years; in 2022, dividends exceeded 400 billion yuan for the first time, and dividends exceeded 410 billion yuan for the first time in 2023, exceeding the 400 billion yuan mark for 2 consecutive years.
At the same time, the Financial Services Association reporter noticed that when various banks held performance conferences this year, strengthening investor returns almost became a “unanimous voice.” Executives from a number of banks have responded positively to issues such as dividend rates, and have expressed their desire to strengthen investor returns.
The dividends of the four major state-owned banks of 410 billion hit a record high, and CCB broke the 100 billion mark for the first time
Steady dividends have always been a major feature of bank stocks, especially the six major state-owned banks. Judging from this year's situation, China, Agriculture, Engineering, Construction, Jiaotong, and Postbank did not disappoint investors this time.
Specifically, ICBC's dividend amount is still ahead of its peers. Among them, ICBC and CCB are also the only two listed banks with total dividends exceeding 100 billion yuan. At the same time, CCB also broke the 100 billion yuan mark for the first time this year.
Among them, the board of directors of ICBC proposed the payment of a cash dividend of RMB 3064 (tax included) for each 10 shares for 2023, with a total dividend of approximately RMB 109.203 billion. The board of directors of China Construction Bank proposed a 2023 cash dividend of RMB 4.00 (tax included) for each 10 shares, totaling RMB 10004 billion to all shareholders.
In addition, the proposed dividend payments of the Agricultural Bank, the Bank of China, the Bank of Communications, and the Postbank this year will reach 80.811 billion yuan, 69.593 billion yuan, 27.849 billion yuan, and 25.881 billion yuan respectively.
In comparison, ICBC paid cash dividends totaling about RMB 108.169 billion last year. CCB's total annual dividend last year was $97.254 billion. The Agricultural Bank of China's cash dividend reached $77.766 billion. The Bank of China's total dividends also reached 68.298 billion yuan. The dividend amounts of the Bank of Communications and the Postbank were 28.8 billion yuan and 25.574 billion yuan, respectively.
A Financial Services Association reporter found that out of the six major state-owned banks, the Bank of Communications alone saw a slight decrease in dividend amounts compared to last year, while the remaining five major banks all increased to varying degrees.
Many banks have dividend rates of 30% or more, and Ping An became a new entrant this year
In addition to the absolute value of annual dividends, the dividend rate (profit distribution as a share of the year's net profit) is also a major focus of investors' attention. Judging from this year's data, a number of banks already have dividend rates above 30%, and the six major state-owned banks also rank among them.
Specifically, out of the six major state-owned banks, the bank's cash dividend rate this year is 32.67%. The Industrial and Commercial Bank, on the other hand, accounted for 31.3% of the net profit attributable to common shareholders of the parent company. The three major banks, the Bank of China, the Agricultural Bank of China, the China Construction Bank, and the Postbank, have basically the same dividend rate this year, which is about 30%.
Comparatively, according to Wind data, in 2022, CCB's cash dividend ratio was 30.3%, ICBC was 30.01%, Bank of Communications was 30.06%, Agricultural Bank was 30.01%, Bank of China was 30.03%, and Postbank was 30.01%. According to Caixin Securities's previous research report, the dividend rate of listed banks is basically stable. In 2022, most listed banks have a dividend rate of 25% or more, and some banks in China have dividend rates higher than 30%. Judging from this year's situation, state-owned banks have apparently also reached the “bottom line” of 30%, and the dividend rates of the Bank of Communications and the Industrial and Commercial Bank have all increased markedly.
According to the Financial Services Association reporter's incomplete statistics, apart from the six major state-owned banks, China Merchants Bank and Ping An Bank also reached more than 30% this year. Among them, China Merchants Bank paid a proposed cash dividend of RMB 1.972 yuan (tax included) per share, totaling 49.734 billion yuan in total annual cash dividends, reaching 35.01%, ranking first among listed banks; Ping An Bank's dividend ratio increased from 12% in 2022 to 30%, which is the first increase.
A number of listed banks have stated their views on dividend amounts and dividend rates this year
On March 27, Bank of Communications Governor Liu Jun said that the stock price of Bank of Communications is at a relatively high level in 2023. The dividend ratio for A shares and H shares is close to 6% to 8%, and the return on investment is quite impressive. Furthermore, the transaction dividend rate has remained above 30% for the past 12 years. Maintaining the continuity and stability of dividends and allowing shareholders to continue to share the results of the Bank's operation and development is the Bank's consistent dividend policy. “We will continue to do so in the future. If investors invest for life, Bank of Communications also hopes to stay with them for life and continue to give investors better returns.”
Ji Guangheng, Party Secretary and Governor of Ping An Bank, said that Ping An Bank has always been willing to increase its dividend ratio, but past profits were mainly used to supplement capital, so the dividend ratio was not high. In the future, Ping An Bank will continue to maintain its original intentions and wishes to increase dividends, actively return investors, strive to perform well, and provide positive feedback to the market and investors.
On March 28, Liao Lin, chairman and chairman of ICBC, said that it is expected that this year's dividend will be close to 110 billion yuan, creating real value returns for shareholders and investors.
“Now that the dividend payout rate has increased, there are no plans to lower it.” Miao Jianmin, chairman of China Merchants Bank, said that China Merchants Bank shareholders made little money in terms of capital gains last year, so increasing dividend dividends can increase the overall shareholders' return, but whether it will continue to rise in the future requires balancing the relationship between cash dividends and medium- to long-term capital accumulation.
On March 29, Societe Generale Bank Governor Chen Xinjian said that at present, there are pressures such as a continued decline in LPR, but Societe Generale is confident of providing steady returns to investors to ensure that the dividend rate remains at a relatively high level.
Recently, the “Opinions on Strengthening the Supervision of Listed Companies (Trial)” issued by the Securities Regulatory Commission stated that it is necessary to “strengthen the supervision of cash dividends and enhance investor returns,” and that listed companies are required to formulate active and stable cash dividend policies and clarify investors' expectations. After the release of this round of listed banks' dividend plans, they were also viewed by the outside world as “responding to the call of the Securities Regulatory Commission.” However, a stock bank insider told the Financial Federation reporter that currently they have not received “suggestions” from the regulatory authorities. Raising dividends is a decision made based on their own business conditions and is aimed at rewarding investors.