Bank of Hangzhou unveils plan to boost valuation

Bank of Hangzhou (SSE:600926) has announced its "Valuation Enhancement Plan and Action Plan of Improving Quality, Increasing Efficiency and Emphasizing Returns," following approval at its recent board meeting. The plan outlines several key initiatives aimed at improving the bank's investment value and shareholder returns. These include enhancing the quality and efficiency of financial services, promoting business transformation and development, strengthening risk management, maintaining a stable dividend policy, improving investor relations management, enhancing information disclosure quality, improving incentive and restraint mechanisms, and implementing value-enhancing holdings. The bank aims to maintain a cash dividend payout ratio of at least 20% of distributable profits. Between 2016 and 2024, the bank achieved an approximate 20% CAGR in net profit attributable to common shareholders and an approximate 23% CAGR in total cash dividends paid to common shareholders. Post-listing, the bank has paid out over CNY 17 billion in total dividends to common shareholders. The bank will also focus on compliance and internal controls, including strengthening internal controls and compliance management. The bank's board acknowledges that the plan is an action plan and does not constitute guarantees regarding future performance or share price.