Another group of middle-level cadres of listed banks collectively increased their holdings of their own stocks!
On February 21, Industrial Bank Co.Ltd(601166) announced that from January 13 to February 18, the heads of some subsidiaries, branches and departments of the head office of the bank (including their spouses and children) bought a total of 16.9329 million shares of the bank from the secondary market. Based on the average transaction price of the range, the total scale of this increase is about 369 million yuan.
Prior to this, the bank was increased by some directors, supervisors and senior managers in July 2015 and March 2020, but it was the first time for middle managers to appear in the increase team on a large scale.
Data show that since the beginning of the year, Industrial Bank Co.Ltd(601166) has increased by nearly 20%, ranking third among A-share listed banks, only slightly lower than Bank Of Chengdu Co.Ltd(601838) , Bank Of Hangzhou Co.Ltd(600926) .
China Securities Co.Ltd(601066) Ma Kunpeng, chief analyst of securities and banking industry, believes that important employees of the company take the initiative to buy stocks, which shows the strong confidence of employees in the future development and long-term value of the company, and can increase investors’ willingness to invest in the long-term value of the bank more than executive shareholding.
the middle-level “trench” bought nearly 400 million yuan
According to the announcement, from January 13 to February 18, Industrial Bank Co.Ltd(601166) some subsidiaries, branches and department heads of the head office (including their spouses and children) voluntarily bought about 16.9329 million shares of the bank from the secondary market with their own funds, with a transaction price range of 20.36 yuan to 23.08 yuan per share.
Based on the average transaction price of the range, the increase of the bank’s middle-level cadre team cost about 369 million yuan. Even at the lowest transaction price, the cost scale is more than 344 million yuan. During the period, Industrial Bank Co.Ltd(601166) share price rose by more than 7%.
In fact, Industrial Bank Co.Ltd(601166) is also one of the bank stocks with the highest increase this year. According to statistics, since the beginning of the year, the bank has increased by nearly 20%, slightly lower than Bank Of Chengdu Co.Ltd(601838) , Bank Of Hangzhou Co.Ltd(600926) . As of the closing on February 21, Industrial Bank Co.Ltd(601166) closed at 22.76 yuan / share.
In the same period, the total net purchase of Industrial Bank Co.Ltd(601166) A shares by land stock connect was about 3.4 billion yuan, ranking second among listed banks in terms of net purchase scale. BlackRock China new vision, the first foreign-funded public fund, also bought Industrial Bank Co.Ltd(601166) to the fifth largest heavy position stock during the position building period in the fourth quarter of last year.
It is understood that this is also the first time since Industrial Bank Co.Ltd(601166) was listed that middle-level cadres have bought their own stocks on a large scale.
Previously, Industrial Bank Co.Ltd(601166) announced in March 2020 that the bank’s 11 directors, supervisors and senior executives jointly increased their holdings of about 1.78 million shares from the secondary market and promised to lock in for three years from the time of purchase. Based on the minimum increase price of 15 yuan / share at that time, it will cost at least 26.7 million yuan.
Earlier, Industrial Bank Co.Ltd(601166) also issued an announcement on the commitment of the largest shareholder and senior executives in July 2015, in which all senior executives promised to voluntarily purchase their own shares with their own funds and lock them in for one year based on their confidence in the sustainable and stable development of the company in the future. Since then, the bank, including five directors, supervisors and senior executives of Vice President Chen Xinjian, bought more than 300000 Industrial Bank Co.Ltd(601166) shares at a cost of about 5.12 million yuan.
rare “self purchase” of middle managers
Public information shows that the increase of directors, supervisors and senior managers is common in the group of listed banks, but the increase of middle-level cadres is rare.
China Citic Bank Corporation Limited(601998) disclosed the first large-scale shareholding increase plan of the directors and supervisors since the listing at the end of October 2020. In addition to 14 directors and supervisors planning to buy H shares of the bank with their own funds of no less than 20.2 million yuan, they also encouraged core managers such as the heads of tier one branches (including overseas branches), head office departments and subsidiaries to buy their own H shares.
From the actual completion, from November 2020 to February the next year, the bank’s middle and senior core managers increased their holdings of about 67.3945 million China Citic Bank Corporation Limited(601998) H shares, with a total increase of about 190 million yuan.
Affected by this, the share price of China Citic Bank Corporation Limited(601998) H shares also rose significantly in the six months after the disclosure of the bank’s shareholding increase plan, and the range increase was in the forefront of listed banks.
Chongqing Rural Commercial Bank Co.Ltd(601077) announced in mid December 2019 that based on the recognition of the value of the bank and the confidence in the future strategic planning and development prospects, it is believed that the shares of the bank have long-term investment value. Each of the 42 managers of the bank plans to increase their holdings by no less than 50000 yuan before the end of the year, there is no upper limit, no increase price range, and the holding period of the shares after the increase is completed is no less than 6 months.
According to the announcement, the above-mentioned “management personnel” refer to the Chongqing Rural Commercial Bank Co.Ltd(601077) head office department general manager assistant and above management personnel, with a total of 66 people in the bank. This means that more than 60% of the bank’s managers have increased their holdings.
As early as September 2014, BOCOM also disclosed the increase in holdings of core managers. According to the announcement, a total of 378 core managers, including the heads of provincial branches, directly affiliated branches, overseas branches, head office departments and subsidiaries of BOCOM, purchased a total of 13.5385 million A-share shares of BOCOM from the secondary market with their own funds.
fundamentals drive bank stocks
at the beginning of 2022, bank stocks ushered in a “good start” market. In January and February (7-18), the cumulative increase of China Citic Bank Corporation Limited(601998) index was 2.47% and 4.96% respectively. Compared with the Shanghai and Shenzhen 300 index, it obtained 10.09% and 3.04% excess returns respectively.
According to the Research Report of East Asia Qianhai securities, the recent “good start” of bank stocks is mainly due to the wide credit on the road, excellent bank fundamentals, marginal relaxation of real estate policy and continuous overweight of wide monetary policy.
Citic Securities Company Limited(600030) the report believes that the prosperity of the banking sector has increased significantly recently, reflecting the impact of “stable growth” and the regional resonance of the market seeking undervalued values. Banks have entered a stable performance period from the period of rapid rise. It is expected to gradually enter the market range driven by fundamentals after the economic expectation is stable after March. It is suggested to pay attention to the dimensional allocation value of the whole year.
In terms of fundamentals, taking Industrial Bank Co.Ltd(601166) as an example, last year, the bank completed an operating revenue of 221.24 billion yuan, a year-on-year increase of 8.9%, and realized a net profit attributable to the shareholders of the parent company of 82.68 billion yuan, a year-on-year increase of 24.1%. This is also the first 2021 annual performance express of listed shares.
By the end of 2021, Industrial Bank Co.Ltd(601166) total assets had reached 8.6 trillion yuan, an increase of nearly 9% over the beginning of the year, of which the total loans had increased by 11.7% to 4.43 trillion yuan over the beginning of the year, and the proportion of loans in total assets had risen to 51.5%.
In terms of asset quality, by the end of last year, the balance of Industrial Bank Co.Ltd(601166) non-performing loans was about 48.7 billion yuan, down nearly 1 billion yuan from the beginning of the year, but rebounded from the end of the third quarter. Although the trend of “double decline” of non-performing loans for several consecutive quarters was ended, the bank’s non-performing loan ratio had fallen to 1.1% at the end of last year, the best level in nearly seven years.
In view of the work arrangement of the whole bank in 2022, at the annual work meeting held before the Spring Festival, Industrial Bank Co.Ltd(601166) the relevant person in charge stressed the need to do a good job in “four stability and four progress”: first, the scale growth should be stable and the development quality should be improved; Second, the traditional field should be stable and the emerging track should be advanced; Third, the development of outlets should be stable and digital development should be advanced; Fourth, business development should be stable and security should be improved.
