Ping An Bank (000001): Stable transition and continuous improvement
On the evening of October 21, Ping An Bank announced its 2019 third quarter performance report, and achieved operating income of 1,029 in the first three quarters.
60,000 yuan, an increase of 18 in ten years.
8%, achieving a net profit of 236 attributable to shareholders of the parent company.
2 ten percent, an increase of 15 per year.
The performance continued the high growth trend in the first half of the year, with revenue and profit growing at more than 15%.
From the perspective of performance breakdown, the driving factor of high revenue growth mainly comes from the daily average interest-earning assets +6 per year.
3%, interest margin + 33bps per year, net fee income +17 per year.
The spread is 33bps to 2 every time.
62%, asset and debt pricing are contributing in the short term, but the company’s Q3 NIM is down 9bps from the previous quarter, of which assets -10bps / debt -2bps.
The preliminary structure is mainly due to the downward link in loan pricing, but the disadvantages are that the overall cost is stable, and the interest rate on the 广州桑拿 retail side has dropped significantly.
As for non-interest, handling fees and investment income were affected by the base of the same period last year. The growth rate fluctuated, but the absolute level was stable.
Asset expansion accelerated, bonds continued to increase, and the retail transition steadily advanced.
In terms of scale, asset growth accelerated in the third quarter (Q2 / Q3 were +1 respectively.
7% / 3.
3%), which is expected to be related to the replenishment of converted debt capital.
From a structural point of view, benefiting from the reduction in the reserve ratio, the asset structure has been further optimized.
The results of the company’s retail transformation continue to materialize. The company ‘s basic retail and private banking customers and asset management scales have achieved an early growth of more than 25%. The increase in loans is tilted towards retail, especially small consumer loans.
4 points to 59.
2%, but the new loan, auto financing and other businesses based on risk control reasons, this period has some control.
The non-performing ratio has improved, the generation ratio has been paid attention to, and the proportion of loans has declined, and asset quality has continued to solidify.
Judging from the main indicators, the marginal improvement of the company’s asset quality is obvious, and the provision continues to increase.
We believe that the first phase of the improvement of the company’s asset quality has been completed, and the follow-up mainly observes whether the non-performing mutations in retail loans can restore effective control. If the incidence of non-performing loans can be effectively controlled, there is still room for credit costs to penetrate.
We slightly adjust the company’s EPS to 1, 2019, 2020, and 2021.
58 yuan, 1.
71 yuan and 1.
96 yuan, estimated net assets at the end of 2019 is 14.
08 yuan, calculated based on the closing price on October 21, 2019, the corresponding PE for 2019-2021 is 10.
6 times, corresponding to 1 at the end of 2019.
The company’s retail in the early stage has gradually entered the cashing stage. At present, the improvement of operations has gradually been transformed into financial indicators. There is still room for optimizing the retail business, especially the allocation of corporate resources will help improve and reduce costs.
In the future, we need to focus on observing the improvement of risk control capabilities—improvement of asset quality—credit cost savings—elasticity of operating performance and the progress of the transformation of corporate business.
The company’s recent performance in the secondary market confirms investors’ recognition of the fundamentals and is estimated to have been repaired to the next highest level of shares.
We believe that the transition and transformation are advancing, the flexibility of subsequent performance is improved, and we maintain a prudent overweight rating on the company.
Risk warning: Asset quality is changing faster than expected, retail transition is not progressing