Bank Of Ningbo Co.Ltd(002142) (002142)
Strategy: from deep cultivation of small and medium-sized enterprises to vigorous wealth management
Behind the business context of Bank Of Ningbo Co.Ltd(002142) is the transformation of two identities. The first is to “make friends with dynamic small and medium-sized enterprises” and the second is to “make friends with the richest people in Jiangsu and Zhejiang”. The former corresponds to the strategy of cultivating small and medium-sized enterprises, and the latter corresponds to the strategy of wealth management. The two will jointly support future growth.
Small and micro enterprises and personal loans: the second growth curve of interest income
Since 2019, the year-on-year growth rate of retail company loans has exceeded 35%, thanks to:
(1) Effective team building: by the end of 2020, there will be 309 business teams, with a rapid increase in the number to 3000, and the average group number will be 9.5. The loan scale of the average group retail company will reach 351 million (YoY + 67 million), and the per capita scale will reach 37 million (YoY + 01 million).
(2) Rich product matrix: the retail company’s business includes 11 financing services, covering a variety of credit enhancement methods and designing different enterprise business links; the cash management business includes four products such as tongcunling and agile card, which are used for daily settlement and transactions of enterprises.
(3) Customers of retail companies with both quantity and quality: the growth rate of the number of credit retail companies from 2018 to 2020 was 78.3%, 70.9% and 40.6% respectively, the proportion of credit customers increased to 32.8%, and the average customer loan reached 924000.
In personal loans, the rapid growth in the number of customers supports the growth of consumer loans and business loans. Housing loans show explosive growth due to the low base, and the proportion of housing loans is still low.
Wealth management: the core engine of intermediate income
More than 80% of the agency income has been contributed:
(1) Online drainage liquidation + team building: Bank Of Ningbo Co.Ltd(002142) app is becoming more and more perfect. The drainage section is rich in content. The liquidation section attaches importance to financial management and covers a rich consignment system; the wealth management team has reached 2800 people.
(2) Customers and AUM are growing rapidly: individual customers have reached 12 million (YoY + 13.6%), corresponding to AUM 600 billion (YoY + 24.1%); platinum business and above customers have reached 388000 (YoY + 12.4%). Private customers have reached 11209 (YoY + 63.3%) and AUM 128.8 billion (YoY + 49.8%).
Investment advice
Bank Of Ningbo Co.Ltd(002142) with the rapid growth of retail corporate loans and personal loans, the wealth management business is expected to continue to develop. It is estimated that the net profit attributable to the parent company from 2021 to 2023 will be 19.265/23753/29.034 billion yuan respectively, with a year-on-year increase of 28.01% / 23.29% / 22.23%, and the corresponding EPS will be 3.11/3.84/4.69 yuan respectively. It is predicted that the reasonable valuation center is 351.7 billion, which is covered for the first time and rated as “buy”.
Risk statement
The macro economy went down more than expected.
