\u3000\u3000 Ping An Bank Co.Ltd(000001) Ping An Bank Co.Ltd(000001) )
Performance maintained high growth and revenue growth improved
The company disclosed the annual report of 2021, and the main financial data are consistent with the performance express. Among them, the revenue, profit before provision and net profit attributable to the parent company of 21q4 increased by 14.10%, 21.64% and 10.28% respectively year-on-year. The year-on-year growth rate of the company's revenue went further in 21q4, mainly due to the strong growth momentum of non interest business income after the year-on-year growth rate of net interest income stabilized. Among them, the year-on-year growth rate of net income from handling fees and commissions decreased slightly, but remained higher than the growth level of overall revenue.
The downward range of net interest margin narrowed
In 2021, the company's net interest margin was 2.79%, a year-on-year decline of 9bp, of which 21q4 net interest margin was 2.74%, a slight decline of 1bp compared with 21q3, and the downward speed of interest margin has slowed down significantly. The decline of net interest margin was dragged down by the loan yield, mainly due to the narrowing of retail asset pricing. Specifically, the inclination of loans to individual housing makes the yield of retail loans under pressure to a certain extent. In addition, the company has also increased the provision of mortgage loans. At the same time, the low-risk business and high-quality customer group are given preferential credit, and the credit loan structure is also optimized to a certain extent. Objectively reduce the credit yield, but at the same time ensure the stability of asset quality.
From the perspective of the rhythm of retail credit supply, the company's reduction of risk appetite is an active retail strategic transformation from relying on credit supply for profit to building a wealth management revenue growth pole under the background of shifting economic growth and moving residents' savings. Moderately improve the credit supply of personal housing mortgage business, so as to obtain high-quality customers; Moreover, personal housing mortgage loans last for a long time, which is conducive to the company to grasp high-quality customers and improve and tap AUM growth space under the background of long-term interest rate decline.
Asset quality continued to consolidate, and the overdue rate / concern rate increased slightly
By the end of 21q4, the company's non-performing rate was 1.02%, which continued to decline by 3bp compared with the end of 21q3; The generation rate of non-performing loans in the whole year was 1.25%, a year-on-year decrease of 0.61pct, and the asset quality remained stable and positive. The increase in the proportion of concerned loans and overdue loans is mainly due to the company's adjustment of the recognition standards for overdue and concerned loans of credit cards, personal housing mortgages and licensed mortgages from 21q4. If the impact is excluded, the proportion of concerned loans and overdue loans are 1.09% and 1.34% respectively, down 28bp and 6BP compared with the end of 21q3. This shows that in fact, the risk factors leading to the overdue rate and the proportion of concerned loans in the third quarter have been effectively disposed of. Combined with the significant increase in the company's write off in the fourth quarter, it can be reasonably inferred that the company has actively identified the non-performing of relevant loans and may have been written off.
In addition, the company disclosed the risk exposure of real estate related businesses for the first time. As of the end of 21q4, the total balance of the company's business bearing credit risk was 341089 billion yuan, and the total balance of business not bearing credit risk such as financial capital contribution, entrusted loan, cooperative agency management, consignment trust and fund, lead underwriting debt financing instruments was 120686 billion yuan. The risk exposure of the company's housing related businesses is generally controllable.
Investment suggestion: asset quality is compacted, retail transformation is high, and continue to be optimistic
The company's high-level retail transformation has obvious demands on AUM growth. In accelerating its integration into the group ecology, the company enjoys the benefits of acquiring and storing customers. The contribution of wealth management performance is expected to accelerate, and the stability of asset quality lays a solid foundation for performance release. It is estimated that the net profit attributable to the parent company in 202223 will increase by 19.34%, 17.40% and 14.61% year-on-year. As of the closing on March 10, the company's Pb (LF) was 0.78 times, giving the 2022 target PB1 4 times, corresponding to the target price of 26.35 yuan, maintaining the "buy" rating.
Risk warning: insufficient credit demand, credit risk fluctuation, AUM growth and less than expected public exhibition
