AP, April 26 (reporter Gao Ping) After the disclosure of the 2023 annual report and the first quarterly report of this year the night before, Bank of Jiangsu Today, investors voted with their feet. The trading situation shows that today, Bank of Jiangsu jumped short and fell sharply, once approaching the limit. As of the noon closing, Bank of Jiangsu fell 9.6%. In the afternoon trading, the decline of Bank of Jiangsu narrowed, and as of press release, it fell 8.77%.
The data shows that in 2023, the revenue and net profit attributable to the parent company of Bank of Jiangsu increased by 5.3% and 13.3% year on year, while in the fourth quarter of 2023, the single quarter decreased year on year. However, in the first quarter of 2024, the revenue and net profit attributable to the parent company increased by 11.72% and 10.02% year on year respectively. Some research reports of securities companies believe that the growth rate of net profit of Bank of Jiangsu is lower than the market expectation. Today, at the performance exchange meeting in 2023 and the first quarter of 2024, the management of Bank of Jiangsu responded to this year's performance trend, dividend plan, market value management measures and other issues.
The management looks forward to this year's performance trend
"On the whole, the growth rate of net profit of Bank of Jiangsu decreased significantly compared with that before, which was lower than our and market expectations, mainly due to the pressure of interest margin and provision provision." As for the latest periodic report disclosed by Bank of Jiangsu, CICC The research report thinks so. The data shows that in 2023, the revenue and net profit attributable to the parent company of Bank of Jiangsu increased by 5.3% and 13.3% year on year, while in the fourth quarter of 2023, the single quarter decreased by 7.1% and 36.8% year on year respectively, and in the first quarter of 2024, the revenue and net profit attributable to the parent company increased by 11.72% and 10.02% year on year respectively.
In recent years, the interest margin of the banking industry has generally faced the pressure of narrowing. The annual report shows that in 2023, the net interest margin of Bank of Jiangsu will fall back to 1.98% and the net interest margin will be 1.95%. In 2022, the net interest margin will be 2.32% and 2.11% respectively. The research report of CICC pointed out that in 2023, the average daily net interest margin of Bank of Jiangsu in the reduction caliber fell by 34bp to 1.98% year on year. The research report believed that the holding income of transactional financial assets under the reduction caliber was no longer included in interest income, which had a certain impact. It is estimated that the net interest margin in the fourth quarter of 2023 will decline by 35bp to 1.59% quarter on quarter, and the first quarter of 2024 will rise by 23bp to 1.82% quarter on quarter.
At the performance meeting, some investors mentioned the reasons for the low profit in the fourth quarter of 2023 and other issues. The management of Bank of Jiangsu did not respond positively to the problem, but only said that the bank's revenue and net profit would maintain a healthy growth in 2023. Against the background of a high base in the first quarter of last year, the growth rate of revenue and net profit in the first quarter of this year still maintained double digits, reflecting a healthy and sustainable development trend, In the future, the goal will continue to be to outperform the market.
In addition, looking forward to the performance trend of this year, Ge Renyu, chairman of the Bank of Jiangsu, stressed that the first quarter of this year had a good start. "In combination with the regular report and the previous communication, I believe you can see that Bank of Jiangsu has maintained a steady and good development trend last year and the first quarter of this year, especially in the first quarter of this year, we further realized the double growth of revenue and net profit attributable to the parent company at a high base and a high starting point, and achieved a relatively good start," said Ge Renyu, Although the development environment and industry competition faced by banks are becoming increasingly complex and severe, they are still confident to successfully achieve the annual goals.
It is planned to carry out medium-term dividend distribution and study on increasing dividend frequency
The dividend distribution of listed banks is a topic of market concern. It is reported that, in addition to the cash dividends in 2023, Bank of Jiangsu has distributed more than 38 billion yuan of cash dividends on ordinary shares in the eight years of listing. If the preferred stock dividends and convertible bond coupons are added, the total dividends paid to various investors in the A-share market will exceed 45 billion yuan. "Especially in the last four years, we have further combined the internal and external situation changes, and on the basis of overall consideration of investors' returns and their own sustainable development, we have maintained a cash dividend ratio of 30% of the net profit attributable to the parent company every year. The stock price performance has outperformed the market in the same period, providing investors with more stable cash dividends and stock investment returns." Lu Songsheng, Secretary of the Board of Directors of Bank of Jiangsu, said.
Recently, the guidelines for cash dividends of listed companies and the "New National Nine Rules" have been released. What are the future plans of Bank of Jiangsu in terms of dividends? Lu Songsheng said that in the past, the Bank has closely followed, carefully studied and studied some new regulations and requirements issued by the regulatory authorities. Although listed banks are relatively special in industry attributes, and continue to increase efforts in the service of the real economy, the promotion of measures to benefit the people, etc., the demand for capital is becoming stronger and stronger, However, Bank of Jiangsu still hopes to maintain stability in the overall dividend policy.
Recently, the Board of Directors of Bank of Jiangsu deliberated and passed the proposal to request the General Meeting of Shareholders to authorize the Board of Directors to decide on the 2024 interim profit distribution. Lu Songsheng said that Bank of Jiangsu had made a careful study on the increase of dividend frequency and other work, and the Board of Directors would specifically consider the company's profitability, cash flow and medium and long-term development plans, Strictly follow relevant regulations.
The performance will encounter a sharp drop in the company's share price. During further Q&A, some investors asked about specific measures taken by Bank of Jiangsu in market value management in 2024. In this regard, the management of Bank of Jiangsu said that it would actively carry out market value management. In 2024, it would mainly promote market value management from several aspects. First, it would continue to do a good job in operation and management to continuously increase investors' returns, "From the perspective of the first quarter, the Bank's operating revenue and net profit attributable to the parent company both maintained a double-digit growth, and continued to maintain a sound momentum of development of seeking progress while maintaining stability and outperforming the general trend". The second is to strive to maintain a high proportion of cash dividends. In 2023, the proportion of cash dividends attributable to the parent company's net profit of 30% will continue to be maintained. In addition, investors' demands will also be fully considered. In 2024, it is planned to carry out interim dividends; Third, we will continue to strengthen communication and exchange between institutional investors and major shareholders, and actively promote the increase of major shareholders' shareholding. In 2023, the increase of major shareholders' shareholding will rank first in Shanghai Stock Exchange, and we will further do a good job in this regard in 2024.
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