Image source: The Motley Fool. Wednesday, July 23, 2025 at 1:00 p.m. ET Call participants Chairman & Chief Executive Officer — Lynn Harton Chief Financial Officer — Jefferson Harralson Chief Risk Officer — Rob Edwards President, Community Banking — Rich Bradshaw Need a quote from a Motley Fool analyst? Email [email protected] Takeaways Operating earnings per share-- Operating earnings per share was $0.66, up 14% from the same quarter last year. Net interest margin-- Net interest margin was 3.50% in fiscal Q ...

Investment Rating - The report assigns a "Buy" rating to Bank of China (BOC), Postal Savings Bank of China (PSBC), and China Construction Bank (CCB) with target prices of Rmb 6.73/HK$ 5.00, Rmb 6.82/HK$ 5.59, and Rmb 11.14/HK$ 7.91 respectively [24][27][28] Core Insights - Four large state-owned banks in China announced a total capital raise of Rmb 520 billion, with Rmb 500 billion from the Ministry of Finance and Rmb 20 billion from other state-owned shareholders [1] - The capital injection will increase the average shareholding of the Ministry of Finance and Central Huijin Investment by 5 percentage points to 56% [1] - The capital replenishment is expected to be completed through A-share private placements by the end of 2025 [1] Summary by Sections Capital Raise Details - The capital raise will be evenly distributed among BOC and PSBC, with each bank raising approximately Rmb 120 billion [3] - The new shares will be issued at a price below 1x book value, representing a 16% premium over recent trading prices [3] - New shares as a percentage of outstanding shares post-recapitalization for BOC and PSBC will be 8% and 17% respectively [4] Capital Adequacy - The CET1 ratio for BOC and PSBC is projected to increase by 86 basis points and 151 basis points respectively [4] - The report indicates that to maintain dividend per share (DPS) at 2024 levels, dividend payout ratios would need to rise to 31-36% [5] Growth Projections - The announced capital raise, along with increased dividend payouts, would allow for a 7.9-9.3% growth in risk-weighted assets (RWA) assuming unchanged density [5] - The report anticipates a downward trend in RWA density, which would enable more asset growth without proportionally higher capital consumption [15] Comparative Analysis - The report notes that Agricultural Bank of China (ABC) and Industrial and Commercial Bank of China (ICBC) were excluded from the announced capital injections, with estimates suggesting they may require Rmb 150 billion each for capital support [18][19] - The average CET1 ratio increase for participating banks is expected to be 1.03 percentage points [21]

Further to the press release of December 6, 2024, Crédit Agricole S.A. informs that: As stated in the press release of December 6, 2024, the increase of its stake is consistent with Crédit Agricole's strategy as a long-term investor and partner of Banco BPM. Crédit Agricole S.A. does not intend to launch a public offer for the capital of Banco BPM. Press release Montrouge, April 2 , 2025 The European Central Bank authorizes Credit Agricole S.A. to increase Banco BPM stake to 19.9% Consequently, CRÉDIT AGRIC ...