
Bank of Tianjin has established a significant business presence around the world. With a strong foundation in China, the bank has expanded its reach to various international markets.
The bank's international presence is evident in its participation in the Belt and Road Initiative, a massive infrastructure development project aimed at connecting Asia, Europe, and Africa. This initiative has enabled the bank to tap into new markets and opportunities.
Bank of Tianjin has a strong presence in Asia, with a significant number of branches and subsidiaries in countries such as Hong Kong, Macau, and Singapore. This presence has allowed the bank to serve the growing needs of businesses and individuals in the region.
The bank's international business has also been supported by its membership in the Shanghai Cooperation Organization, a regional economic organization that promotes cooperation and development among its member states.
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Financial Information
Bank of Tianjin offers a range of financial services, including personal banking, corporate banking, and investment banking.
The bank has a significant presence in Tianjin, with over 300 branches across the city. Its financial information is easily accessible online, with customers able to check their account balances and transaction history with ease.
The bank's financial information is also available in multiple languages, catering to the diverse needs of its customers. This includes English, Chinese, and other languages, making it a convenient option for international customers.
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Investments
Bank of Tianjin has a diverse investment portfolio, with one notable stake being in Tianjin Jixian County Bank Co. Ltd.
This commercial bank is located in Jixian County, China, and Bank of Tianjin holds a 35% stake in it.
Interestingly, Bank of Tianjin initially held a 53.87% stake in Tianjin Jixian County Bank before ceding some of its shares to other investors.
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Sales by Activity
Bank of Tianjin Co., Ltd. reports a significant increase in treasury operations from 2019 to 2021, with sales growing from 3.58 billion to 4.05 billion.
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The company's sales from treasury operations peaked in 2022 at 4.81 billion before decreasing slightly to 4.03 billion in 2023.
In contrast, corporate banking sales saw a decline from 2019 to 2021, from 2.2 billion to 1.1 billion.
Personal banking sales also experienced a decline from 2019 to 2023, from 3.62 billion to 1.77 billion.
Here's a breakdown of the sales by activity for Bank of Tianjin Co., Ltd. from 2019 to 2023:
Valuation Simplified
Valuation is complex, but it doesn't have to be overwhelming.
Bank of Tianjin's valuation can be determined using fair value estimates, which consider various factors such as its financial condition and potential risks.
Discovering if a company is undervalued or overvalued can be done by analyzing its dividends and insider trades.
Fair value estimates can help investors make informed decisions about buying or selling shares of Bank of Tianjin.
Governance and Ownership
Bank of Tianjin's shares are traded on the Hong Kong Stock Exchange under the ticker 1578.
The bank's ownership structure is quite diverse, with several major stakeholders holding significant percentages of the shares. Australia and New Zealand Banking Group is the largest shareholder, holding 41.12% of the bank's stock.
A notable aspect of the bank's ownership is the presence of the State-owned Assets Supervision and Administration Commission of the State Council, which holds 17.18% of the shares.
Here's a breakdown of the bank's top shareholders:
Ownership
Bank of Tianjin's shares are traded on the Hong Kong Stock Exchange under the ticker: 1578.
The bank's ownership structure is quite diverse. The largest shareholder is Australia and New Zealand Banking Group, holding 41.12% of the shares.
The State-owned Assets Supervision and Administration Commission of the State Council is the second-largest shareholder, with a 17.18% stake in the bank.
Interestingly, the remaining shares are held by a mix of other investors, collectively making up 41.70% of the bank's ownership.
Here's a breakdown of the top shareholders:
Board Composition
The Board of Directors at Bank of Tianjin Co., Ltd. consists of seven members, with Hong Tao Wu serving as the Chairman.
Hong Tao Wu, the Chairman, has been in the role since May 10, 2023, and is 53 years old. He also serves as the President of the company.
The Board of Directors has a diverse age range, with members ranging from 44 to 71 years old. The youngest member is Guang Pei Dong, who is 44 years old and has been a Director/Board Member since June 29, 2020.
The oldest member is Jian Zhong Lu, who is 71 years old and has also been a Director/Board Member since February 27, 2022. There is a 27-year age gap between the youngest and oldest members.
Here is a list of the Board of Directors:
- Bao Rui Liu, Director/Board Member, 68 years old, joined on February 28, 2011
- Wei Zhao, Director/Board Member, 56 years old, joined on November 30, 2014
- Jun Li, Director/Board Member, 54 years old, joined on May 10, 2018
- Guang Pei Dong, Director/Board Member, 44 years old, joined on June 29, 2020
- Shun Long Wang, Director/Board Member, 48 years old, joined on June 29, 2020
- Hong Tao Wu, Chairman, 53 years old, joined on May 10, 2023
- Xiao Dong Dong, Director/Board Member, 47 years old, joined on February 27, 2022
- Ke Zheng, Director/Board Member, 50 years old, joined on February 27, 2022
- Jian Hua Zeng, Director/Board Member, 67 years old, joined on February 27, 2022
- Jian Zhong Lu, Director/Board Member, 71 years old, joined on February 27, 2022
Analysis and Perspective
Bank of Tianjin's TSR over the last twelve months is 5.5%, which falls short of the market return.
The bank's five-year TSR has been a reduction of 7% per year, suggesting a potential turnaround in fortunes.
However, to truly gauge the company's performance, we need to consider other information beyond just the share price.
Peer Analysis
In a peer analysis, we look at how different companies within the same industry or sector perform compared to each other. This helps us understand their strengths and weaknesses.
One key aspect of peer analysis is stock performance. For example, Bank of East Asia Ltd has a market cap of 30.17bn, while Bank of Tianjin Co Ltd has a market cap of 10.32bn, which is significantly lower.
Financial strength is another crucial factor. Bank of East Asia Ltd has a quick ratio of -- and a total debt to capital of --, indicating a strong financial position. In contrast, Bank of Gansu Co Ltd has a quick ratio of 0.8123 and a total debt to capital of -1.93, suggesting a weaker financial position.
Efficiency is also an important aspect of peer analysis. For instance, Bank of East Asia Ltd has an asset turnover of -- and a revenue per employee of 8.46, indicating efficient operations. On the other hand, Bank of Gansu Co Ltd has an asset turnover of 0.1559 and a revenue per employee of 0.4558, suggesting less efficient operations.
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Here's a summary of some key metrics for the companies mentioned:
By analyzing these metrics, we can gain valuable insights into the performance and efficiency of different companies within the same industry or sector.
A Different Perspective
Looking at a company's share price over the long term can be a useful proxy for business performance. Bank of Tianjin's TSR over the last twelve months was 5.5%, which, although a gain, falls short of the market return.
The company's five-year TSR has been a reduction of 7% per year, which might indicate that the business has turned its fortunes around. This is a significant change, and it's worth considering what could have caused it.
To truly gain insight into a company's performance, we need to consider other information beyond just share price. This includes looking at warning signs, such as the one significant warning sign found with Bank of Tianjin.
For example, we've spotted two warning signs with Bank of Tianjin, including one that's particularly concerning.
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Frequently Asked Questions
What are the big four banks of China?
The big four banks of China are ICBC, CCB, BOC, and ABC, which are the country's largest and most influential state-owned commercial banks. These four banks play a significant role in China's financial system and economy.
Sources
- https://www.bankoftianjin.com/tianjinyinwen/about_us/index.html
- https://en.wikipedia.org/wiki/Bank_of_Tianjin
- https://markets.ft.com/data/equities/tearsheet/profile
- https://www.marketscreener.com/quote/stock/BANK-OF-TIANJIN-CO-LTD-26726410/company/
- https://simplywall.st/stocks/hk/banks/hkg-1578/bank-of-tianjin-shares/news/bank-of-tianjins-hkg1578-earnings-have-declined-over-five-ye
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