\u3000\u3000 Ping An Bank Co.Ltd(000001) Ping An Bank Co.Ltd(000001) )
Core view
The performance in 2021 is in line with expectations, and the growth rate has increased steadily. In 2021, the annual revenue was RMB 169.4 billion, with a year-on-year increase of 10.3%, and the growth rate increased by 1.2 percentage points compared with the first three quarters, mainly due to the contribution of other non interest income; The annual PPOP increased by 11.6% year-on-year, with a growth rate of 2.9 percentage points higher than that in the first three quarters; The annual net profit attributable to the parent company was 36.3 billion yuan, a year-on-year increase of 25.6%, and the growth rate decreased by 4.5 percentage points compared with the first three quarters, mainly due to the base. Excluding the base, the annual net profit attributable to the parent company increased by 13.5% on average in two years, up 2.4 percentage points compared with the first three quarters. 2021 weighted roe10 9%, up 1.3 percentage points year-on-year. The scale of assets expanded steadily. In 2021, the total assets increased by 10.1% year-on-year to 4.92 trillion yuan, slightly lower than that in the previous period; However, the company's retail AUM still maintained double-digit growth. At the end of the year, the retail AUM reached 3.18 trillion yuan, a year-on-year increase of 21.3%. In addition, deposits increased by 10.9% year-on-year to 2.99 trillion yuan, and loans increased by 14.9% year-on-year to 2.98 trillion yuan; At the end of the year, the core tier 1 capital adequacy ratio was 8.60%, basically the same as that at the end of the third quarter.
The decline in net interest margin narrowed quarter by quarter, and the net income from handling charges increased steadily. The company's annual net interest margin was 2.79%, a year-on-year decrease of 9bps, mainly due to the optimization and adjustment of retail loans, the preference to low-risk customers, and the decline of enterprise loan yield in line with the market, resulting in the decline of loan yield significantly faster than debt cost. From the perspective of single quarter net interest margin, the single quarter net interest margin in the fourth quarter was 2.74%, which was 1 bp lower than that in the third quarter, basically remained stable, and the decline narrowed quarter by quarter. In terms of handling fees, the net income of handling fees increased by 11.5% year-on-year in 2021, mainly driven by the decrease of handling fee related expenses.
The marginal generation of non-performing assets slowed down and the provision coverage continued to rise. Since 2021, the overall asset quality has continued to improve. The estimated non-performing rate in 2021 is 1.80%, a year-on-year decrease of 60bps. The company's provision coverage at the end of the year reached 288%, an increase of 20 percentage points over the end of the third quarter and 87 percentage points over the beginning of the year. In addition, the non-performing rate of the company at the end of the year was 1.02%, falling quarter by quarter; The concern rate was 1.42%, up from the beginning of the year, which was mainly caused by the caliber adjustment. After excluding the caliber factor, it decreased by 2bps from the beginning of the year; The deviation of non-performing products was 73%, 2 percentage points lower than that at the beginning of the year.
Investment suggestion: maintain the "overweight" rating. We slightly adjusted the profit forecast according to the latest LPR adjustment and other factors. It is estimated that the net profit attributable to the parent company from 2022 to 2024 will be 41.9/479/54.8 billion yuan, with a year-on-year growth rate of 15.3/14.3/14.4%; Diluted EPS is 2.01/2.32/2.68 yuan; The current share price corresponds to PE of 6.9/6.0/5.2x and Pb of 0.75/0.67/0.60x, maintaining the "overweight" rating.
Risk tip: the continued weakening of the macroeconomic situation may have an adverse impact on the quality of bank assets.
