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Difficulties in recovering over 1.584 billion in loans? New developments in the lawsuit against Bank Of Guiyang, with urgent improvements needed in risk control capabilities amidst a series of disputes.
① In the long term, an increase in non-performing loans may put pressure on the asset quality and profitability of Banks. ② The other party's company may face financial difficulties, and even if winning the lawsuit, there is a possibility that the other party may not be able to repay the debts on time and in full.
Bank of Qingdao, bank of Guiyang and others have received intensive research. Next year's interest margin pressure remains a focal point of concern. The reserve volume and structure of many banks' "New Year Red" projects have been "exposed".
① With the background of debt-to-equity swaps, some regional banks are expected to benefit from the improvement in the fundamentals brought about by local economic development and debt replacement. ② Regulatory requirements will help listed banks with relatively low price-to-book ratios strengthen dividends and increase stake & buy back, gradually raising valuation levels. At the same time, under the expectation of market cap management for major index constituent stocks, this will facilitate long-term capital entering the market, indirectly supporting high-dividend sectors such as banks.
How to explain the situation of declining revenue and net profit in the third quarter? Why is the provision coverage ratio still increasing? Can dividends be increased? Bank of Guiyang executives face questions from investors.
① Some investors bluntly pointed out that “revenue and profit growth rates are not ideal” in the three-quarter report, and Chairman Zhang Zhenghai responded. ② Governor Sheng Jun explained why the non-performing rate improved in the third quarter and why the provision rate continued to rise. ③ Investors questioned the slowdown in the company's loan growth rate, and Bank of Guiyang management responded.
Bank of Guiyang (601997): Accelerated write-off of non-performing loans, debt restructuring bullish for asset quality expectations.
3Q24 performance basically meets our expectations. Bank of Guiyang announced 3Q24 performance: 1-3Q24 revenue decreased by 4.4% year-on-year, net income attributable to parent company decreased by 6.8% year-on-year; single-quarter revenue in 3Q24 decreased by 5.3% year-on-year.
Bank of Guiyang's Q3 Profit Down 6%, Revenue Slides 5%
Bank of Guiyang: Bank of Guiyang Co., Ltd. Report for the third quarter of 2024
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