BANK OF CHINA(601988) 证券之星·2025-03-30 09:13Core Viewpoint - The issuance of A-shares by the Bank of China aims to strengthen its core Tier 1 capital, which is essential for stable business development and compliance with regulatory requirements [1][6]. Group 1: Impact Analysis of the Issuance - The total number of shares to be issued is 27,272,727,272, with a total fundraising amount of RMB 165 billion, excluding issuance costs [1]. - The analysis considers three scenarios for annual growth rates of net profit attributable to the parent company: 0%, 2.5%, and 5% [1][4]. - The issuance will dilute immediate returns, affecting key financial metrics such as earnings per share (EPS) and net profit [1][4]. Group 2: Financial Metrics Impact - Without the issuance, the net profit attributable to the parent company for 2025 is projected at RMB 237.84 billion, while with the issuance under different growth scenarios, it varies from RMB 237.84 billion to RMB 249.73 billion [4][6]. - The basic and diluted EPS without the issuance is projected at RMB 0.75, which may decrease to RMB 0.73 under the 0% growth scenario and increase to RMB 0.80 under the 5% growth scenario with the issuance [4][6]. Group 3: Necessity and Reasonableness of the Issuance - The issuance aligns with national policies to enhance the capital base of state-owned banks, which are crucial for supporting the real economy and maintaining financial stability [5][6]. - The bank aims to improve its capital adequacy ratio, which is currently at 14.38%, and the total capital adequacy ratio at 18.76%, both exceeding regulatory requirements [6]. Group 4: Use of Proceeds - The proceeds from the issuance will be fully allocated to increase the bank's core Tier 1 capital, thereby supporting stable business growth and enhancing competitive strength [6][10]. - The bank has a robust human resource reserve with 312,757 employees, and it is focused on optimizing talent allocation to support high-quality development [7]. Group 5: Risk Management and Operational Efficiency - The bank is committed to enhancing its risk management framework, addressing various risks including credit, market, and operational risks [9][12]. - Measures will be taken to improve operational efficiency and reduce costs, thereby enhancing profitability and minimizing the impact of the issuance on immediate returns to shareholders [10][11]. Group 6: Commitments from Major Stakeholders - The controlling shareholder, Central Huijin Investment Ltd., and the bank's board members have committed to ensuring that the measures to mitigate the dilution of immediate returns will be effectively implemented [12][13].