\u3000\u3000 Ping An Bank Co.Ltd(000001) Ping An Bank Co.Ltd(000001) )
Key elements of the report:
On March 10, 2022, Ping An Bank Co.Ltd(000001) issued the annual performance report for 2021.
Key investment points:
The annual profit increased sharply and the cost income ratio decreased: in 2021, the operating revenue was 169383 billion yuan and the net profit attributable to the parent company was 36.336 billion yuan, with a year-on-year increase of 10.32% and 25.61% respectively. The non-performing rate was 1.02%, a year-on-year decrease of 0.16 percentage points. The cost income ratio decreased by 0.81 percentage points to 28.3%.
Assets grew steadily and net interest margin narrowed slightly: at the end of 2021, the company's asset scale maintained steady expansion, with total assets of 4.92 trillion yuan, a year-on-year increase of 10.13%. The asset structure was further improved, and the proportion of loans increased steadily. The published value of the annual net interest margin was 2.79%, a year-on-year decrease of 9bp, which was mainly affected by the change of market interest rate and the real economy of financial profit transfer.
Private banking business performed well: in 2021, the retail base customer base continued to grow. The number of retail customers of the company and the number of registered users of Ping An pocket bank app were 118.21 million and 134.92 million respectively, with a year-on-year increase of 10.3% and 19.2%. The number of wealth management business customers is 1099800, aum3 18 trillion yuan, a year-on-year increase of 17.7% and 21.3% respectively, of which the number of qualified customers of private banks and AUM increased by 21.6% and 24.6% year-on-year, exceeding all customer groups. The Aum increment of private banks was 277.2 billion yuan, accounting for 49.7% of all AUM increment.
Asset quality continued to improve: at the end of 2021, the non-performing rate decreased to 1.02%, continuing the downward trend. The provision coverage rate increased significantly, with a month on month increase of 20 percentage points in the fourth quarter to 288.42%, with strong risk offset ability.
Profit forecast and investment suggestions: Ping An Bank Co.Ltd(000001) 2021: the annual profit increased sharply and the asset quality continued to improve. The transformation of retail continued to make breakthroughs, and the comprehensive financial business continued to deepen. It is predicted that the EPS in 2022 / 23 will be 2.04 yuan / 2.38 yuan. According to the closing price of Ping An Bank Co.Ltd(000001) a shares on March 9, it will be 13.84 yuan, corresponding to 0.75 times Pb in 2022, maintaining the overweight rating.
Risk factors: affected by covid-19 epidemic, the global economic recovery was less than expected, resulting in sharp fluctuations in bank assets.
