Damo: Capital injections dilute ICBC (01398)'s equity dilution compared to expectations, and moderate agricultural bank (01288) equity dilution is in line with expectations

The Zhitong Finance App learned that Morgan Stanley released a research report saying that Agricultural Bank (01288) and Industrial and Commercial Bank (01398) recently announced capital replenishment plans. The bank expects the Agricultural Bank's shares to be diluted to about 6.6%, in line with market expectations, and its CET1 is expected to rise 61 basis points to 11.41%. As for ICBC's equity dilution ratio, which is 3.6%, lower than the market and the bank's original expectations of 5% to 6%, its CET1 is expected to increase by 34 basis points to 13.55%. The bank said that due to the transfer of funds from the government's special treasury bonds to other financial institutions, ICBC's capital injection amount and equity dilution margin were lower than expected. Both banks raised their mid-term dividend payout rates from 30% to 31%, and profit growth has picked up. I believe the impact on diluted dividends should be offset.