According to public information, 25 listed
banks shared out bonuses totalling 353.6 billion Yuan this bonus season.
Among them, Industrial and Commercial Bank (ICBC)
of China was the most generous, paid bonuses exceeding 80 billion Yuan. Bonuses
from China Construction Bank, Agricultural Bank of China, Bank of China, Bank
of Communications, China Merchants Bank, Industrial bank and CITIC bank bonuses
also exceeded ten billion.
ICBC dividends over 80 billion
Listed banks are ushered into their bonus
season in June and July, with none left out as all of them presented their
bonus scheme. According to Flush’s (300033, stock it) statistics, 25 listed
banks will be pay out 353.6 billion Yuan with an average distribution of cash
dividends ratio of 26.7%.
ICBC is the top in dividend payout, with a
total of 83.506 billion Yuan. ICBC 2016 annual distribution plan for each 10
shares were paid out 2.343 Yuan (including tax) with a cash dividend ratio of
30.5%. Judging from the performance over the past three years, ICBC’s bonuses
have maintained above 30% with the cash dividend in 2014 amounted 91.26 billion
Yuan with a dividend ratio of 33% and cash dividend in 2015 amounted 83.15 billion
Yuan with a dividend ratio of 30.3%.
Central Huijin Investment, China Securities
Finance, Sycamore investment, Yifangda Fund Management and China Merchants
Fengqing Flexible Allocation Mixed Launched Fund together held on 129.62
billion worth of shares. According to share out bonus scheme, their total
profits amounted 30.37 billion Yuan with the shareholders occupying 36.36% of
the share out bonus.
In the bonus share out frenzy, Ping An
Insurance, Anbang Life Insurance and China Life Insurance respectively holding
4.32 billion shares, 390 million shares and 317 million shares, were each paid
out dividend amounting 1.01 billion Yuan, 91.377 million Yuan and 74.273
million Yuan.
Among the top four banks, China
Construction Bank has the highest absolute dividend per share, with the highest
reaching 0.278 Yuan per share. According to the final number of shareholders, the
amount of share out bonus was 69.503 billion Yuan with cash dividend ratio of
30.03%.
City commercial banks dividend higher than
agricultural banks
Last year, city commercial banks and
agricultural firms were listed one after another. Dividends showed city
commercial being far higher than agricultural firms.
Among the city commercial banks, Bank of
Shanghai is the “most generous”, according to its published annual
profit distribution plan. By the end of 2016, the total share capital base at
6.4 billion shares. 5 Yuan cash dividends (including tax) is paid out for every
10 shares and capital reserve is 10 shares for every 3 shares. By this
calculation, the Bank of Shanghai dividends amounted 3.2 billion Yuan.
Bank of Jiangsu ranked second.
Bank of Jiangsu paid 1.78 Yuan for every 10
shares with a total of 2.055 billion Yuan of cash dividend distributed. The big
dividends of the bank benefited a lot of shares of listed companies. Huaxi
Holdings, announced on June 7 to hold Bank of Jiangsu’s 249 million shares, accounting
for 2.16% of its total equity. According to the above scheme, Huaxi may obtain
44.288 million Yuan of cash dividends. Su Changchai A also reported on the same
day to owning 38 million of Bank of Jiangsu’s shares. The company may obtain
6.76 million Yuan cash dividends. At present, the company has received the
dividends and recognized as investment income.
For agricultural banks, Bank of Changshu top
the list. The bank intends to distribute cash dividend of 1.80 Yuan for every
10 shares (including tax) with a total cash dividend distribution of 400
million Yuan. Bank of Wuxi on the other hand plan to distribute 1.5 Yuan for
every 10 shares, amounting a total cash dividend of 277 million Yuan.
Even with an average performance last year,
Jiangsu Zhangjiagang Rural Commercial still distributed dividends as
“sincerity”. As reported in April 28, dividend distribution is based
on the total share capital of 1.808 billion shares in December 31, 2016 with 1
Yuan (including tax) distributed for every 10 shares. Total distributed cash
dividend amounted 181 million Yuan. According to this calculation, the cash
dividend amount accounted for 26.22% of the company’s net profit.
Bank of Wujiang lacked bonuses, with only for 0.6 Yuan paid out for every
10. Total distribution of cash dividend amounted 67 million Yuan, 3 shares per
10 shares.
Although there are plans for share out
bonuses, but investors should avoid speculations. At present, the dividend and
dividend income of listed companies shall be differentiated and individual
income tax policy shall be implemented. Among them, for more than 1 years of
ownership, free of personal income tax; For a period of less than 1 months and
1 months to 1 years, the actual tax burden is 20% and 10%.
“Due to lack of flexibility, retail
banking stocks have not been too favourable. However, institutions are very
fond of banking stocks, such as QFII, insurance, social security funds and so
on,” Snowball Finance General Manager Li Changmin said. Based on the
current observation, bank stock valuation is low due to high margin of safety. This
is shown in the recent market adjustment, whereby not only has the banking
sector not been implicated, it has risen steadily; In addition, 4% to 5% of
dividends a year refer to a very stable organisation.