Financial institutions’ one-in-a-century foreign exchange transaction SWAP is bullish. Many banks have reached record highs in 2023. As financial reports are released one after another, Taichung Bank took the lead last week to announced a proposed dividend of 0.96 yuan , with the yield rate exceeding 6% , triggering the fermentation of bank stock dividends theme. “Yahoo Finance” compiled the legal person ranking of bank stock dividend yields this year, with Taiwan Enterprise Bank first with 7.8%, and there were four other stocks with more than 5%.
A look at the yield rate from a table: Taiwan’s bank profits will soar in 2023. The dividend yield rate of Taiwanese banks is estimated at 7%. File photo: Central News Agency
According to the statistics of the Financial Supervisory Commission, China’s 38 domestic banks made a huge profit of 472.44 billion yuan in pre-tax earnings in 2023, an annual increase of 20.5%, setting a record high in history. They mainly benefited from two major benefits Firstly, the stock market was strong last year, which led to an increase in bank net income. , this time the bilateral interest rate difference between Taiwan and the United States is driving SWAP net investment income (swap transactions) to increase significantly.
Taichung Bank took the lead in announcing last year’s dividend policy on Friday the 23rd. Earnings per share were NT$1.31, and a dividend of NT$0.96 was distributed. The delivery rate was as high as 76%, which was a shock to the market. stock price last Friday, the dividend yield was The interest rate is as high as 6.11%, of which the dividend is 0.4 yuan, and the dividend yield is 2.55%.
Another company that has a chance of surpassing Taichung Bank in dividend yield after including stock dividends is Small and Medium Enterprise Bank of Taiwan (2834). Earnings per share last year were 1.51 yuan higher than Taichung Bank, and the allotment rate was in the previous years around 70% or higher In addition, due to the unrealized price reduction of the bonds on the books last year, other equity recognized a loss of 3.7 billion, which is expected to be offset, resulting in an all-time low dividend, with only 27% allocated, setting a new low during the financial tsunami.
Taiwan Enterprise Bank’s dividend this year has the opportunity to greatly compensate shareholders. Senior executives have expressed optimism about bright dividend prospects this year in previous meetings, saying it will “make a big difference.” By the third quarter of last year, the loss price of 3.7 billion yuan has recovered to 2.412 billion yuan Distributable earnings can be put into it The legal person estimates that this year’s allotment is expected to be more than 1 yuan or higher, and the dividend yield is expected to be 7.8%, or even higher than 8%. Taiwan Enterprise Bank has recently stated that its dividend this year will be mainly stock dividends.
Excluding financial charges, the earnings per share performance of China’s pure banking stocks last year was the highest with Jingcheng Bank’s EPS of 5.59 yuan, followed by Shanghai Commercial Bank’s 3.052 yuan. Judging from the allotment rate in 2021 before the epidemic, allotment chance It is higher than 2 yuan and 1.7 yuan, and Beijing Silver’s dividend distribution is quite prudent in 2021. If we look at the haircut rate, we cannot rule out looking at 3 yuan.
If bank stocks are estimated based on last year’s self-generated profit and the dividend distribution rate in 2021, the total dividend yield rate is more than 5%, including Taiwan Enterprise Bank, Taichung Bank, Far East Bank, Kaohsiung Bank , Jingcheng Bank, etc. 5 banks, Chang Bank and Wangdaoyin are above 4.3%. However, although banks’ profits were extremely high last year, the challenges this year are not small. Since November last year, banks have increased their provisions for bad debts under the “Sunny Day Grain Fund”. dividend policies will adopt the principle of “maintaining profit and maintaining stability”.
In general, experts believe that life insurance securities stocks are relatively more favorable than bank stocks, but they still have long-term investment value.
While the profits of most banking stocks will increase to a peak in 2023, looking ahead to 2024, most analysts believe that life insurance and securities-based annuities have growth potential relatively high. Lu Hanwei, a senior securities analyst, said that although banking stocks do not have insurance like financial holding stocks, and although they have less baggage in the past, it depends entirely on interest rates, interest rate spreads and fee income from products financial, as well as exchange income So, last year The growth from year to year is more significant. This year, because the base period is higher, the growth will be relatively stable. In comparison, Jin Holdings has relatively large fluctuations , bank stocks are relatively stable. , and the risk is relatively low, but the base period is not that low. Growth this year may be relatively stable.
Huang Wenqing, vice president of Taishin Investment Consulting, also has a similar opinion. There will be many issues for financial holdings in 2024. Depending on the overall environment, the Fed’s interest rate cut will bring benefits. Relatively speaking, insurance will life and securities benefit from growth, which is worth looking forward to The banking industry made good profits last year. , mainly due to the exchange gains brought by the difference in the total interest rate However, from the perspective of long-term stock deposits, whether it is financial holdings or banking stocks, the current stock prices can still be invested After all, Taiwan’s electronics , transfer, and financial stocks Among the three main categories of stocks, the evaluation of financial and industrial stocks is still low, and their fundamentals are also growing, so they are relatively favorable.
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Yahoo Finance special correspondent Ye Yiru: With more than 20 years of experience in the mainstream financial media, from the Web1.0 bubble in 2000 to the Meta Yuanverse Web3.0, he has seen the rise and fall of Taiwan’s large and small business groups, and has experienced five international financial groups crises. We believe that finance is life and everywhere, no matter how difficult financial information is, we should explain it in a simple way. Everyone, young and old, should manage money. If you don’t manage money, money won’t worry about you.
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