, China
Photo by Jungwoo Hong via Unsplash.

Ping An Bank with enough capital for proposed higher dividends: analyst

The China-based bank has proposed to pay a 30% dividend in 2023.

Ping An Bank has enough capital to cushion the impact of its proposed higher dividends and will likely maintain a stable performance, according to S&P Global Ratings.

The China-based bank has proposed to pay a 30% dividend in 2023– up from the 10% to 15% range that it has been paying out over the past five years.

“In our view, the China-based bank has the capital cushion to absorb the impact of a higher dividend,” S&P wrote in a commentary.

PAB could improve its capitalization over the next one to two years if loan growth remains tepid amidst weak economic conditions, the ratings agency further noted.

ALSO READ: Are ATM cash withdrawals making a comeback?

However, it warned that the economic confidence in China in the near term will likely prevent overly aggressive loan growth for the bank. PAB's loan growth was 2.4% in 2023, amidst lackluster consumer sentiment, reducing capital consumption for the bank, S&P noted.

Overall, PAB’s profitability is expected to be in line with that of comparable peers over the next 12 to 24 months. The bank's reported return on average assets was 0.85% in 2023, down 4 basis points (bps), but better than the industry average of 0.7%. 

PAB also reported lower credit costs– reducing it by 16 bps– which helped mitigate pressure on lower margins and income. Net interest margin was down 37 bps in 2023, and fees and commissions income fell by 2.6%, according to S&P.

ALSO READ: Strong liquidity, moderate risk to prop up Gunma’s “weak yet improving” profits

“PAB's stable performance will support the wider group's long-term strategy of providing integrated financial services. We expect the bank to remain a key contributor to the parent group's financials. This underpin our view of PAB being a highly strategic part of the group,” S&P concluded.

Follow the link s for more news on

Pembekuan pendanaan menghantam penyedia layanan BNPL

Investor semakin sedikit mengalirkan dana ke penyedia layanan BNPL yang sudah menghadapi keuntungan margin yang tipis.

HSBC: Aliansi bank-fintech merupakan win-win

Pemberi pinjaman dapat belajar dari teknologi disruptif sambil membantu mereka mematuhi regulasi.

Tokenisasi aset perdagangan untuk menjembatani kesenjangan pembiayaan

Teknologi blockchain dapat mendesentralisasikan operasi keuangan dan mempermudah akses kredit.

BCA menjalankan komitmen terhadap keuangan berkelanjutan

Bank asal Indonesia ini mempertimbangkan aspek lingkungan dan tata kelola dalam keputusan pemberian pinjaman.

Mengapa UNOBank mendorong embedded finance tumbuh di Filipina

Bagi UNOBank, banking interface terpadu adalah strategi pertumbuhan sekaligus upaya inklusi keuangan.

OCBC mencoba mengurangi kesenjangan manfaat bagi agen properti di Singapura

Produk terbarunya menawarkan manfaat finansial di bidang perbankan, asuransi, dan perdagangan.

Upaya Malaysia menjadi anggota BRICS untuk mendorong perombakan sistem perbankan

Namun, tantangan muncul ketika menjauh dari ketergantungan pada AS dan SWIFT.

Platform pembayaran PingPong memperoleh lisensi PJP di Indonesia

PingPong mengincar ekspansi ke pasar ekspor senilai $320 miliar di negara tersebut.

Merger dan penutupan mengancam 3.800 bank di area pedesaan Cina

Sekitar 70 bank di area tersebut telah merger sejak 2023.