\u3000\u3 Guangdong Shaoneng Group Co.Ltd(000601) 658 Postal Savings Bank Of China Co.Ltd(601658) )
Postal Savings Bank Of China Co.Ltd(601658) 2021 net profit of 76.17 billion yuan, an increase of 18.65%. The performance growth mainly comes from the contribution of scale, non interest and provision. Among them, the net interest income increased by 6.32%, the net fee income increased by 33.4%, the non interest income increased by 50.4% and the operating income increased by 11.4% year-on-year; At the end of the year, total assets increased by 10.9%, loans increased by 12.9% and deposits increased by 9.6%. The year-end non-performing rate was 0.82%, the provision coverage was 418.61%, and the core tier 1 capital adequacy ratio was 9.92% Postal Savings Bank Of China Co.Ltd(601658) performance continued to grow rapidly. On the one hand, the revenue side performed positively, and the handling charges and other non interest jointly promoted the sustained and rapid growth of the revenue side. On the other hand, less incremental provision contributed to the performance. The advantages of asset quality and stock provision in the annual report are still, the handling fees and other non interest have increased rapidly, and the business has blossomed at multiple points, which reflects the remarkable progress of the company’s wealth management and other strategies. It is proved that “big bank” can also grow with business improvement and income growth.
Key points supporting rating
Handling fees continued to grow rapidly, and the upgrading of wealth management achieved remarkable results
The handling fee increased by 33.4% year-on-year and 36% year-on-year in the fourth quarter. Each business of handling charges grew rapidly. The businesses of wealth, investment banking, trusteeship and bank card blossomed at many points. The businesses of agency, investment banking, trusteeship, settlement, bank card and other businesses increased by 89%, 44%, 31%, 16%, 4% and 103% respectively. Among them, the agency made the most prominent contribution. The company accelerated the upgrading of the wealth management system and realized the transformation from single product sales to customer multi asset allocation. The agency sales revenue of agency insurance, agency funds and agency asset management plans increased rapidly, with financial revenue of 5.17 billion yuan, a year-on-year increase of 23.15%. The handling charges accounted for 6.9%, up 1.14 percentage points year-on-year. The low base combined with a solid customer base and active management drive led to the sustained and rapid growth of handling charges.
Other non interest bearing continuous contributions
His non interest rate increased by 67.6%, mainly from investment related income and from fund investment and trading contributions.
The asset quality is stable and continues to be among the best in the industry
The non-performing rate is 0.82%, the proportion of concerned loans is 0.47%, and the provision coverage is 419%, which continues to be in the forefront of the industry.
Valuation
We adjusted the company’s EPS to 0.94/1.07 yuan in 2022 / 2023 (formerly 0.98/1.12 yuan). At present, the corresponding price to book ratio in 2022 / 2023 is 0.72x/0.63x, maintaining the overweight rating. Main risks of rating
The economic downturn led to asset quality deterioration exceeding expectations and regulatory control exceeding expectations.
