After one year, the allotment of Bank Of Qingdao Co.Ltd(002948) (sz002948) was finally completed.
On the evening of February 9, Bank Of Qingdao Co.Ltd(002948) released the issuance results of H shares and the announcement of share changes, and 529 million H shares were fully placed. Together with the 782 million A-share shares previously allotted, the total amount of funds raised by the bank’s a + H-share allotment is nearly 4.2 billion yuan.
According to the performance express of last year disclosed by the bank, the net profit attributable to the parent company of the bank last year increased by more than 20% year-on-year. However, in contrast to the brilliant performance, the bank’s core tier 1 capital adequacy ratio has been declining for many years.
allotment has been going through one year
As early as February 2021, Bank Of Qingdao Co.Ltd(002948) disclosed the plan for public issuance of securities through allotment of shares, which plans to issue securities through allotment of shares to the original shareholders. The types of shares issued through allotment are A-Shares and H shares.
By May 6, 2021, Bank Of Qingdao Co.Ltd(002948) announced that the bank’s application for share allotment had been accepted by the CSRC. On the 10th of that month, the CSRC issued the notice of feedback on the review of administrative licensing projects to the bank, listing the feedback on 12 aspects, such as the source of funds, the risk of financial management business, the risk related to off balance sheet business, non-performing loans, operational risk and the loan ratio of the top ten customers. Accordingly, Bank Of Qingdao Co.Ltd(002948) responded to the feedback in late May and revised the share allotment plan.
However, the bank’s share allotment application was not successfully passed. On August 9, 2021, the CSRC issued the notice on the second feedback on the review of administrative licensing projects to Bank Of Qingdao Co.Ltd(002948) , requiring the bank to make further explanations on the three aspects of loan concentration, credit risk of non local branches and corporate governance.
Until November 29, 2021, the issuance Review Committee of the CSRC reviewed the application for Bank Of Qingdao Co.Ltd(002948) a share allotment. According to the audit results, the bank’s A-share allotment application for more than half a year was finally passed.
On the 15th of the following month, the bank announced that it had recently obtained the reply on approving Bank Of Qingdao Co.Ltd(002948) issuance of overseas listed foreign shares (zjxk [2021] No. 3861) and the reply on approving Bank Of Qingdao Co.Ltd(002948) share allotment (zjxk [2021] No. 3932) issued by the CSRC. According to the reply, the bank was approved to issue no more than 529 million additional H shares with a par value of RMB 1 per share, all of which are ordinary shares; At the same time, it was approved to allot 824 million new A shares to the original shareholders.
On January 12, 2022, Bank Of Qingdao Co.Ltd(002948) issued the announcement of the issuance results of A-share allotment. The bank’s A-share allotment was based on the total A-share capital of 2.747 billion shares after the closing of Shenzhen Stock Exchange on January 4, 2022, and was allotted according to the proportion of 3 shares per 10 shares. The total number of A-share allotments was 824 million, and the issue price was 3.20 yuan / share. The issuance results show that the number of shares effectively subscribed is 782 million, accounting for 94.87% of the total number of shares available for placement, and the total amount of funds effectively subscribed is 2.502 billion yuan.
On February 9, 2022, the issuance results of H shares were released. The bank allotted shares to H-share shareholders in the proportion of 3 shares for every 10 shares. The number of shares that can be allotted is 529 million. In fact, the allotment has been completed, and the price per share is HK $3.92.
From the perspective of funds raised, Bank Of Qingdao Co.Ltd(002948) the total amount of funds raised by the a + H share allotment is RMB 4.196 billion, of which the total amount of funds raised by the a share allotment is RMB 2.502 billion and the total amount of funds raised by the H share allotment is RMB 1.695 billion. The net fund raised from a + H share allotment was 4.156 billion yuan, including 2.481 billion yuan from a share allotment and 1.675 billion yuan from H share allotment. As of February 9, the bank had received all the subscription money for a + H allotment.
capital urgently needs “blood supplement”
Bank Of Qingdao Co.Ltd(002948) established in November 1996, it is the first main board listed bank in Shandong Province and the second “a + H” share listed city commercial bank in China. On December 3, 2015, the bank’s H shares were listed on the main board of the stock exchange of Hong Kong (03866. HK); On January 16, 2019, the bank’s A-Shares were listed on Shenzhen Stock Exchange.
By the end of the year, the total assets of the bank (including the total interest of customers) had increased by 244.1 billion yuan, an increase of 58.2% over the previous year, including 244.1 billion yuan at the end of the year, accounting for 1.2% over the previous year; The total liabilities amounted to 488.922 billion yuan, an increase of 13.99% over the end of the previous year, of which the total customer deposits (excluding accrued interest) amounted to 313.525 billion yuan, an increase of 15.17% over the end of the previous year, accounting for 64.13% of the total liabilities, an increase of 0.66 percentage points over the end of the previous year.
On the revenue side, in 2021, the bank’s operating revenue was 11.136 billion yuan, a year-on-year increase of 5.65%; The net profit attributable to shareholders of the parent company was 2.923 billion yuan, a year-on-year increase of 22.08%.
In terms of asset quality, by the end of 2021, the bank’s non-performing loan ratio was 1.34%, down 0.17 percentage points from the end of the previous year; The provision coverage rate was 197.42%, an increase of 27.80 percentage points over the end of the previous year.
Blue whale finance and economics found that Bank Of Qingdao Co.Ltd(002948) is not optimistic in terms of capital adequacy, and capital is in urgent need of “blood”.
According to the third quarterly report of last year, the bank’s core tier 1 capital adequacy ratio was 8.35% at the end of September 2021, which was the same as that at the end of the previous year; The tier 1 capital adequacy ratio was 11.07%, down 0.24 percentage points from the end of the previous year; The capital adequacy ratio was 15.95%, an increase of 1.84 percentage points over the end of the previous year.
The comparison found that the bank’s core tier 1 capital adequacy ratio continued to decline from the end of 2018 to the end of 2020, which were 8.39%, 8.36% and 8.35% respectively, compared with 12.48% at the end of 2015. Meanwhile, the tier 1 capital adequacy ratio at the end of September 2021 has decreased by 0.75 percentage points compared with 11.82% at the end of 2018.
Moreover, by comparing the 2021 interim report data of A-share listed urban commercial banks, blue whale finance found that at the end of June 2021, the bank’s core tier 1 capital adequacy ratio was 8.29%, ranking second to last among the 16 urban commercial banks, only 0.06 percentage points higher than 8.23% of Bank Of Chengdu Co.Ltd(601838) .
