Bank of Communications 3328

Re: Bank of Communications 3328

Postby winston » Fri Mar 27, 2015 4:10 am

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Bank of Communications (3328) yesterday said net profit last year rose 5.7 percent from 2013.

The lender declared a dividend of 27 fen (34 HK cents), putting its yield at 5.2 percent.

The stock now stands at an 11 percent discount to its net asset value, still worthy of accumulation just like other big Chinese banks.

Source: Dr Check, The Standard HK
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Re: Bank of Communications 3328

Postby winston » Fri Mar 27, 2015 4:10 am

not vested

Bank of Communications (3328) yesterday said net profit last year rose 5.7 percent from 2013.

The lender declared a dividend of 27 fen (34 HK cents), putting its yield at 5.2 percent.

The stock now stands at an 11 percent discount to its net asset value, still worthy of accumulation just like other big Chinese banks.

Source: Dr Check, The Standard HK
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Re: Bank of Communications 3328

Postby winston » Fri Jun 05, 2015 6:21 am

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BoCom leads share rally

Bank of Communications (3328) led a rally in mainland banking shares in Shanghai and Hong Kong yesterday on optimism that the government is poised to approve its reform plans.

BoCom, the nation's fifth-largest lender and partly owned by HSBC Holdings (0005), surged by its daily limit of 10 percent in Shanghai and gained as much as 7.5 percent in Hong Kong, the biggest increase in six months.

The State Council will unveil reform plans for banks and financial sectors this month, with BoCom being the first to test the waters, Guangzhou Daily reported. This will lend support to Chinese banks' earnings and shares in the medium term as the reform will better align staff and managements' interests with their performance.

BoCom said last July it was studying plans to deepen mixed ownership and improve corporate governance as the state urged a financial revamp.

As of March, the finance ministry owned 26.5 percent of BoCom, while HSBC had 18.7 percent. BoCom was said to be eyeing a 33.3 percent stake in Huaying Securities from the Royal Bank of Scotland Group.

Source: Bloomberg
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Re: Bank of Communications 3328

Postby winston » Fri Jun 05, 2015 1:52 pm

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03 Jun, 2015

State Council Reportedly Introduces Banking Reform, Takes BANKCOMM (03328.HK) as Pilot

The State Council is going to introduce the proposal for banks' mixed ownership reform and financial reform this month, the Mainland media reported citing sources who are familiar to the case.

The reform proposal will aim at the whole banking industry while BANKCOMM (03328.HK) will be taken as the pilot enterprise.

BANKCOMM's reform proposal was submitted to the State Council a month ago and will be approved in two weeks at the earliest, the foreign media reported.

Source: AAStocks Financial News
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Re: Bank of Communications 3328

Postby winston » Fri Jun 05, 2015 1:54 pm

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June 3, 2015

<Research Report>Macquarie Maintains BANKCOMM at Underperform with Target Lifted to $6.11

Macquarie maintained BANKCOMM(03328.HK) at Underperform mainly due to the weak fundamentals, in particular of asset quality and liability structure.

Despite the strong capital position, the growth is likely to be constrained as a result of competitive deposit, together with depositors' ongoing search for better yield.

The target price was raised from $5.35 to $6.11.

Source: AAStocks Financial News
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Re: Bank of Communications 3328

Postby winston » Thu Jun 18, 2015 5:52 am

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The mixed-ownership reform has been kicked off. Bank of Communications (3328) was told the banks reform proposal has been approved by the State Council.

The H share went up 1.6 percent yesterday or nearly 20 percent since April. The possible institutional reform will include a few aspects namely ownership structure, introduction of private capital, staff stock ownership scheme, and employees' salary and incentive system.

As the fifth-largest bank in China BoCom's network and deposit-absorbing ability are not as good as the Big Four and as a state-owned bank, its operational efficiency and management incentive scheme are worse than the medium-sized privately owned banks.

Looking at ownership, HSBC (0005) is holding 18.7 percent, which is near the 20 percent upper limit for foreign ownership. If HSBC cannot raise its stake, who will buy the shares?

And the second question is who is the seller? The Ministry of Finance and Central Huijin are the biggest mainland shareholders now. Can the newcomers become senior management in a state- controlled bank? Probably not that easy.

There is no hurry to buy BoCom. Currently, it trades at near its net asset value at around HK$7.91. Any pullback to below HK$7.50 would be attractive.

Source: Dr Check, The Standard HK
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Re: Bank of Communications 3328

Postby winston » Wed Mar 30, 2016 7:40 am

BoCom in stable dividends pledge

by Daisy Wu

Bank of Communications (3328) yesterday said net profit crawled 1.03 percent higher last year to 66.53 billion yuan (HK$79.17 billion) from 2014, beating expectations.

Basic earnings per share advanced to 90 fen. A final dividend of 27 fen was recommended, while the dividend payout ratio stood at 30 percent of net profit.

"The slowdown in net profit growth put a pressure on our internal resources," president Peng Chun said. "But we give a priority to shareholders' interests, aiming at a long-term stable dividend."

Net interest income, which accounted for 74.1 percent of its net operating income, rose 6.97 percent to 144.17 billion yuan.

Net interest margin fell 14 basis points to 2.22 percent. The lender foresees the margin will further narrow, which would be reflected in this year's profit.

Net fee and commission income surged 18.32 percent to 35.03 billion yuan, with the proportion of this business jumping 1.43 percentage points to 18 percent.

Impaired loans surged 30.66 percent to 56.21 billion yuan with the bad loans ratio up 0.26 percentage point to 1.51 percent. But the provision coverage ratio of impaired loans slumped 23.31 percentage points to 155.57 percent, marginally higher than Beijing's requirement of 150 percent.

The lender expects the bad loans ratio to further rise, but said the deterioration of asset quality is under control amid Beijing's efforts to tackle overcapacity.

"The government will hamper those who on purpose avoid to pay back loans in the process of de-capacity, protecting the interests of banks," said Peng.

Source: The Standard
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Re: Bank of Communications 3328

Postby winston » Fri Feb 21, 2020 1:48 pm

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HSBC Says Bank of Communications Is Worth More Than $100 Billion

(Bloomberg) -- If HSBC Holdings Plc is right, one of China’s largest banks could be worth twice its current market value.

Bank of Communications Co., China’s sixth-largest lender by assets, has a market capitalization of just over $50 billion. HSBC, the second-largest shareholder of Bocom after the Chinese government, thinks the business is worth more than $100 billion, according to its latest corporate filing.

The gap underscores investors’ skepticism over the plight of Chinese banks, which are grappling with the potential for a surge in bad loans as the coronavirus outbreak grounds most activities and pummels the economy.

Big Chinese lenders have long sacrificed profits in the name of national service, and that prospect has become increasingly worrying as they are called upon to bail out smaller businesses and even weaker peers.

Bocom’s shares have lost 6% this year in Hong Kong after a 9% decline in 2019. Bocom now trades at only 0.46 times its estimated book value for 2020, according to data compiled by Bloomberg.

Yet in its annual report published this week, HSBC said that though the fair value placed on its 19.03% stake in Bocom was just $10.1 billion, its internal models valued the holding at $21.5 billion.

HSBC’s calculation implies a valuation for the Shanghai-based bank of about $113 billion, more than double its current market value.

HSBC said that its valuation of the stake had been above the market for the past eight years leading it to carry out an impairment test to confirm it didn’t need to write down the value.

“Our discussions and focus on assumptions was driven by consideration of the current levels of uncertainty due to the impact of China-U.S. trade tensions, and the overall outlook for the Chinese banking market, and the broader Chinese economy,” HSBC said in its annual report.

HSBC’s interest in Bocom goes beyond just its financial holding. Under an agreement between the two banks, it operates a technical cooperation program involving the secondment of its staff to the Shanghai-based lender to help with what its says is the “maintenance of Bocom’s financial and operating policies.”

HSBC intends to maintain its long-standing partnership with Bocom and has no plans to sell or increase its stake, a spokeswoman in Hong Kong said in an email.

Investors are turning more downbeat on the Chinese banks, whose shares have underperformed the benchmark in most of the past five years.

The “big six” state-owned lenders, which together control more than $17 trillion of assets, currently trade at an average 0.58 times their forecast book value, near a record low.

Source: Bloomberg

https://finance.yahoo.com/news/hsbc-say ... 16048.html
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