\u3000\u3000 Ping An Bank Co.Ltd(000001) Ping An Bank Co.Ltd(000001) )
Summary of the annual report: 1. The annual revenue of Ping An Bank Co.Ltd(000001) 2021 increased by 10.3% year-on-year; PPOP increased by 11.7% year-on-year; Both revenue and PPOP growth maintained upward quarter by quarter. The net profit attributable to the parent company increased by 25.6% year-on-year, and the profit growth was basically in line with expectations. 2. Net interest income increased by + 1.9% month on month in the fourth quarter alone: driven by scale growth, and the net interest margin was basically stable month on month. The average daily interest bearing asset scale of the company in a single quarter increased by 2.8% month on month. The net interest margin decreased slightly by 1bp to 2.74% month on month. The return on assets decreased slightly by 1bp month on month and narrowed; The cost on the liability side decreased 3bp month on month, and the deposits and active liabilities contributed together. 3. Deposits and loans increased sharply, with a year-on-year increase of + 16%; Residents’ deposits increased brightly. Q4 added 92 billion new deposits (76.7 billion new loans higher than Q4), an increase of 52.3 billion over the same period last year. The growth of deposits was much better than that of the same period last year, and the effectiveness of the company’s liability side strategy gradually appeared. The growth of residents’ deposits was better than that in the same period last year. 4. Wealth management fees increased by 18.6% year-on-year: agency funds, insurance and financial management maintained a rapid growth rate. The total wealth management fee increased by 18.6% year-on-year (20.5% year-on-year for 1-3q21), of which the agency fund, insurance and wealth management increased by 83%, 15% and 74% year-on-year respectively. 5. Asset quality: in the fourth quarter, the company increased the intensity of write off and disposal, which is expected to be the recognition and disposal of the bad debts of individual large insured households. The single quarter annualized net generation of non-performing assets written off rose sharply to 3.35%, up 2.56 percentage points month on month. Overdue has one-time factors. According to the regulatory requirements, the company has adjusted the overdue recognition standards of credit cards, personal housing mortgages and licensed mortgages since 4q21. Affected by this, the proportion of overdue loans has increased significantly. As of 4q21, the overdue rate of the company was 1.61%, a year-on-year increase of 19bp. Excluding the above factors, the proportion of overdue loans decreased by 8bp year-on-year. Due to the strong write off disposal and marginal improvement of provision provision provision, the coverage of provision increased month on month. The provision coverage rate was 288%, up 20 percentage points month on month. The loan allocation ratio was 2.94%, rising 13bp month on month. 6. The contribution of MGM (customer introduction) keeps increasing. In terms of new customers: the new contributions of basic retail customers, wealth customers and private customers were 51%, 60% and 51.6% respectively, and the diversion of wealth customers was strong. AUM contribution: the contribution to the net increase of retail AUM is 56%. Basic retail and private bank tracking: the number of retail customers was 110 million, with a year-on-year increase of 10%. The volume of retail AUM was 3.2 trillion, and the marginal year-on-year growth slowed to 21%. The average customer assets under management are 27000 yuan / household. The number of qualified customers of private banks was 69700, an increase of 22% year-on-year. Private aum1 4 trillion yuan, a year-on-year increase of 25%; The average household AUM is 2017 million yuan.
Investment suggestion: the company has strong strategic execution ability. With the gradual progress of the new three-year goal of “reshaping asset liability operation”, the comprehensive income is expected to rise steadily. Company 2022e, 2023epb0 75X/0.67X； PE6. The current valuation of shares is in the middle and lower range of pbx.514515 (pbx.56x / 455), which is in the middle and lower range of pbx.56x.5 in recent years. Backed by the group’s technology and comprehensive finance, the company has obvious advantages in public and retail business development. In the medium and long term, it is expected to transform into a high-quality bank. It is suggested that investors actively pay attention to its transformation.
Note: according to the published annual report, we fine tune the profit forecast and predict that the net profit attributable to the parent company from 2022 to 2023 will be 41.7 billion and 48 billion (the previous values were 41.3 billion and 47.1 billion).
Risk tip: the economic downturn exceeded expectations and the company’s operation was less than expected.
