Source: Global Network
[Global Network Financial Comprehensive Report] On June 13, according to Huaxia Bank It was announced that the Bank issued 2024 open-ended capital bonds (Phase I) on June 11, with a scale of 40 billion yuan. The coupon rate of the first five years was 2.46%, which was adjusted every five years. Conditional redemption rights were attached to the issuer on each interest payment date in the fifth year and after.
Huaxia Bank said in the announcement that the raised funds of the bonds will be used to supplement other tier one capital of Huaxia Bank in accordance with applicable laws and regulatory approval.
According to the 2023 annual report data disclosed by Huaxia Bank, the Bank's tier one capital adequacy ratio at the end of 2023, 2022 and 2021 was 10.48%, 11.36% and 10.98% respectively. According to the credit rating report of China Credit International on the bonds, China Credit International believes that Huaxia Bank's profitability needs to be improved, asset quality is under continuous pressure, short-term liquidity risk management and control is difficult, and it is under continuous capital replenishment pressure.
According to the 2023 annual report data of Huaxia Bank, from the perspective of income structure, the bank realized a net interest income of 70.442 billion yuan, a year-on-year decrease of more than 5%. In terms of non interest income, the net income from fees and commissions was 6.402 billion yuan, a decrease of 3.967 billion yuan or 38.26% over the previous year. Huaxia Bank explained in its annual report that the decrease in net income from handling fees and commissions was mainly due to the decrease in agency business income. On the whole, in 2023, the Bank realized an operating income of 93.207 billion yuan, a year-on-year decline.
In the first quarter, Huaxia Bank achieved an operating revenue of 22.114 billion yuan, down by more than 4% year on year. In the rating report, China Integrity International pointed out that the bank's earnings would still be affected by such adverse factors as the upward pressure on non-performing assets, the downward pressure on interest margin, and the uncertainty of capital business income growth in the future.
At the same time, China Integrity International said in its rating report that as a listed bank, Huaxia Bank has more diversified capital replenishment channels. In recent years, it has replenished its capital through non-public issuance of shares, issuance of preferred shares, secondary capital bonds and perpetual bonds. The issuance of this issue of open-ended capital bonds will help Huaxia Bank improve its capital structure and enhance its capital strength.
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