\u3000\u3 China Vanke Co.Ltd(000002) 142 Bank Of Ningbo Co.Ltd(002142) )
Event: on April 7, the company released its annual report for 2021. The operating revenue was 52.77 billion yuan, yoy + 28.4%, and the net profit attributable to the parent company was 19.55 billion yuan, yoy + 29.9%; Net interest margin 2.21%; The non-performing loan ratio was 0.77%, and the provision coverage was 525.5%.
High performance and bright non interest income. In terms of revenue growth, the company’s net interest income in 2021 was relatively stable, with non interest income of yoy + 51.5%, of which the net handling fee income of yoy + 30.3%, mainly due to the growth of agency business income, reflecting the accelerated release of the company’s wealth management layout in performance. The growth rate of interest and net income remained significantly higher than that of other revenue in the quarter on quarter, while the growth rate of interest and net income remained significantly higher than that of other revenue in the quarter on quarter.
The expansion was strong and the growth rate picked up. In 2021, the company’s average interest bearing assets were yoy + 21.9%, with a growth rate of + 4.0pct month on month, of which the year-on-year growth rate of loans led to 5.2pct of interest bearing assets, reflecting the strong financing demand in the region. In terms of splitting, loans and financial investment contribute mainly to the increment. The recovery of expansion speed has an obvious pulling effect on performance, contributing 22.9pct to the growth of net profit.
The net interest rate in a single quarter decreased slightly and did not change the trend of stabilization. Throughout the year, the company’s net interest margin narrowed by 12bp compared with 21h1, which was mainly affected by the 10bp decline in the return on assets. In a single quarter, the net interest margin has stabilized marginally since 21q3, and 21q4 has been disturbed by the rise of individual fixed deposit costs. With the return of individual fixed deposit costs to normal and the precipitation of low-cost liabilities brought about by the development of wealth management, the cost ratio of interest bearing liabilities of the company is expected to gradually fall, supporting the stabilization trend of net interest margin.
Asset quality remains excellent. By the end of 2021, the company’s non-performing rate was 0.77%, down 1bp from 21q3 and continued to maintain an excellent level. From the perspective of leading indicators, the asset quality of the company remains unchanged. The high level of provision coverage continues to rise, which is the best level in history and reserves sufficient space for subsequent back feeding profits.
Investment advice: strong expansion, stable interest rate spread and clean statements
High performance and bright non interest income; The expansion speed has picked up and returned to credit, and the net interest margin has stabilized; The asset quality continued to be excellent, and the provision was raised again. It is estimated that the EPS of 22-24 years will be 3.77 yuan, 4.52 yuan and 5.55 yuan respectively. The closing price on April 7, 2022 corresponds to 1.7 times of 22 years Pb, maintaining the “recommended” rating.
Risk tip: macroeconomic growth rate declines; The development of wealth management business is less than expected; Credit risk exposure.
