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On the evening of May 31, Minsheng Bank announced that it would implement the 2024 interim dividend payout under the condition that the bank has distributable profits in the first half of 2024, taking into account the current performance situation reasonably.
Just the day before, the Postal Savings Bank also announced that it planned to implement the 2024 interim dividend. At present, the six major state-owned banks have gathered to speak out and "officially announce" the intention of medium-term dividends.
In the context of the "National Nine Articles", more banks are joining the medium-term dividend camp. Industry insiders said that listed banks increase the frequency of dividends and give back to investors with "real money", which will help enhance investor confidence and further stabilize stock prices, and it is expected that more small and medium-sized banks will follow suit.
The six major state-owned banks will gather to implement interim dividends
On the evening of May 30, the Postal Savings Bank announced that it plans to implement the 2024 interim dividend under the condition that there are distributable profits in the first half of 2024, and the proportion of the total interim dividend in the net profit attributable to bank shareholders under the 2024 semi-annual consolidated statement is not higher than 30%.
"The amount of interim profit distribution that has been distributed will be taken into account when formulating the profit distribution plan for 2024. The 2024 interim profit distribution plan will be implemented in accordance with relevant laws and regulations and the relevant provisions of the Bank's Articles of Association, and after fulfilling the corporate governance procedures. This proposal still needs to be submitted to the general meeting of shareholders for deliberation. The Postal Savings Bank announced that.
On the evening of April 29, Industrial and Commercial Bank of China, Agricultural Bank of China, Bank of China, and China Construction Bank issued announcements that the four state-owned banks all deliberated and approved the proposals related to the arrangements for interim profit distribution in 2024. At present, the six major state-owned banks have all announced the news of their proposed interim dividends.
"The company attaches great importance to investor returns, and has a cash dividend ratio of more than 30% for 12 consecutive years. In order to further implement the guidance of regulatory policies, enable investors to share the company's development dividends in a timely manner, and enhance investors' sense of gain, the company intends to implement interim dividends in 2024. Subsequently, the Company will formulate a specific interim dividend plan in accordance with the provisions of the Articles of Association and the net profit level for the first half of 2024, and submit it to the Board of Directors for review and approval. On April 29, Bank of Communications also issued an announcement.
More small and medium-sized banks are expected to join
In fact, in response to the call of the "New National Nine Measures", more and more listed banks are joining the camp of medium-term dividends.
On the evening of May 31, Minsheng Bank announced that according to the reviewed financial report for the first half of 2024, the current performance will be reasonably considered, and the 2024 interim dividend will be paid under the condition that there are distributable profits in the first half of 2024. The total interim cash dividend for 2024 shall not exceed 30% of the Group's net profit attributable to ordinary shareholders of the Bank for the current period.
In addition, a number of small and medium-sized banks such as Qilu Bank, Bank of Nanjing, Bank of Shanghai, Bank of Jiangsu, Bank of Lanzhou, Bank of Suzhou, Shanghai Rural Commercial Bank, and Zijin Bank have recently revealed their intention to pay dividends in the medium term.
On May 20, the management of Bank of Nanjing said at the 2023 Annual General Meeting of Shareholders that according to the new "National Nine Articles" policy, the company will standardize the implementation of the 2024 interim dividend with the authorization and approval of the general meeting of shareholders. The interim profit distribution is based on the reviewed financial reports of the corresponding period, with reasonable consideration of the current performance, and the upper limit shall not exceed the net profit attributable to ordinary shareholders of the Company for the corresponding period.
Industry insiders told reporters that the implementation of interim dividends is a specific measure for listed banks to implement the "National Nine Articles" and the relevant requirements of the China Securities Regulatory Commission. Listed banks increase the frequency of dividends and improve returns to investors, which will help enhance investor confidence and further stabilize stock prices. It is expected that more small and medium-sized banks will follow suit.
However, a number of industry insiders reminded that for listed banks, the number of dividends is not the most important, but the important thing is to steadily increase the dividend ratio based on operating performance. Increasing the dividend ratio should be based on good business performance, balance the concerns of shareholders, employees, investors, depositors and other stakeholders, and fully consider and properly handle the relationship between short-term dividends and long-term development.
In 2024, in the face of pressure such as narrowing net interest margins and declining profits, listed banks should first increase revenue and reduce expenditure, and strive to maintain basically stable profit growth. At the same time, capital should be appropriately replenished through profit retention and other means to enhance the ability to offset risks.
Reviewer: Ye Siqi Editor: Wang Yin Proofreader: Jiao Yuanyuan Producer: Zhang Nan
Issued by: Sun Hong
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