Core Viewpoint - Luzhou Bank plans to issue up to 1 billion new H-shares at its upcoming annual general meeting, aiming to raise at least HKD 1.85 billion primarily to supplement its core tier 1 capital [2][3]. Capital Supplementation - The bank's fundraising will enhance its risk resilience and market competitiveness, allowing for a more robust capital structure and increased lending capacity [3]. - Luzhou Bank's core tier 1 capital adequacy ratio stands at 8.27%, with total assets exceeding RMB 170 billion as of the end of 2024 [3]. Industry Trends - Many small and medium-sized banks are increasing capital through various means, including issuing perpetual bonds and secondary capital bonds, often supported by local government initiatives [2][4]. - The capital increase strategies primarily involve local state-owned enterprises, which can provide additional funding to improve capital adequacy ratios and support business growth [4]. Recommendations for Small and Medium-sized Banks - It is suggested that the scope of investors for capital supplementation tools be expanded to improve the success rate of issuances [5]. - Banks are encouraged to explore innovative capital supplementation tools and enhance regulatory training to facilitate capital raising efforts [5][6]. - Strategies to enhance profitability include diversifying non-interest income sources and optimizing asset-liability structures to improve overall financial performance [5][6].
拟定增募资18亿港元！银行回应来了