\u3000\u3 China Vanke Co.Ltd(000002) 142 Bank Of Ningbo Co.Ltd(002142) )
Key investment points
Performance overview
Bank Of Ningbo Co.Ltd(002142) 2021 annual report: the net profit attributable to the parent company was + 29.9% year-on-year and the growth rate was + 2.9pc month on month; Revenue was + 28.4% year-on-year, and the growth rate was basically the same month on month; ROE16. 6%, year-on-year + 1.7pc; ROA1. 07%, year-on-year + 5bp; The non-performing rate was 0.77%, with a chain comparison of – 1bp, and the provision coverage rate was 526%, with a chain comparison of + 10pc.
High revenue and profit
Bank Of Ningbo Co.Ltd(002142) 2021 net profit attributable to parent company increased by 29.9% year on year, and the growth rate increased by 2.9pc month on month; The revenue increased by 28.4% year-on-year, and the revenue growth rate was the highest among the banks with disclosed performance. Looking forward to the future, the promotion of wealth management strategy and economic location advantages will continue to support Bank Of Ningbo Co.Ltd(002142) profit growth.
Main drivers of profitability: ① provision drag reduction, 21a asset impairment loss was + 42.8% year-on-year, and the growth rate was – 1.6pc month on month. ② The cost income ratio was improved, and the cost income ratio of 21a was 37%, year-on-year -1pc. ③ The growth rate of scale increased, and the total assets increased by 23.9% year-on-year at the end of 21, with the growth rate of + 0.2pc month on month.
Main drag factors on Earnings: the net interest margin narrowed, and the 21q4 net interest margin (at the beginning and end of the period) rose to 1.71% month on month (MOM) – 15bp, due to the increase in the cost ratio of interest bearing liabilities. On the asset side, the rate of return on interest bearing assets in 21q4 rose -1bp to 3.79% month on month (MOM), and the proportion of attributable loans decreased. 21q4 loans increased by + 3.1% month on month (MOM), 2.5pc slower than the total assets. On the liability side, the cost ratio of interest paying liabilities in 21q4 was + 16bp to 2.33% month on month, which was attributed to the decline in the proportion of deposits and the decline in the degree of demand deposits. 21q4 deposits increased by + 0.5pc month on month, 4.7pc slower than total liabilities; 21q4 demand deposits account for 41% of 21q2-5pc, mainly 21q4 enterprise demand deposits account for 34% of 21q2-4pc.
The results of private behavior are gratifying
Bank Of Ningbo Co.Ltd(002142) continue to build a wealth management moat, allocate more wealth management line personnel, introduce head fund companies to create an open platform for wealth, and the wealth management business has achieved remarkable results. In terms of revenue, Bank Of Ningbo Co.Ltd(002142) 21a’s medium revenue increased by + 30% year-on-year, with a significant increase of 24pc compared with 21q1-3, mainly due to the significant increase in the growth rate of agency business, and the growth rate of 21a Bank Of Ningbo Co.Ltd(002142) agency business revenue increased by 33% compared with 21h1 + 20pc; In terms of scale, Bank Of Ningbo Co.Ltd(002142) retail AUM in 21 years increased by + 23% year-on-year, maintaining a high growth rate. It is worth noting that at the end of the 21st century, AUM of Bank Of Ningbo Co.Ltd(002142) private banks increased by 53% year-on-year, with a growth rate of 3.4pc higher than that of 21h1, and private bank customers increased by + 70% year-on-year, with a growth rate of 21h1 + 7pc. Private bank business developed rapidly.
Provision continues to thicken
In terms of non-performing items, Bank Of Ningbo Co.Ltd(002142) 21q4, the non-performing rate increased from – 1bp to 0.77% month on month, the attention rate increased from + 10bp to 0.48%, and the overdue rate increased from – 8bp to 0.76% at the end of 21h1. The concern rate fluctuated slightly, and it was judged that the pressure on the generation of retail non-performing loans increased slightly under the pressure of the economy, while other indicators were still at the excellent level of listed banks. In terms of quarterly coverage ratio, QPC 142 increased to . Looking forward to the future, sufficient provisions lay the foundation for profit release.
Profit forecast and valuation
It is estimated that the net profit attributable to Bank Of Ningbo Co.Ltd(002142) parent company from 2022 to 2024 will increase by 20.3% / 21.3% / 21.8% year-on-year, corresponding to bps23 41 / 26.95/31.27 yuan. Maintain the target price of 49.32 yuan, corresponding to 2.11 times Pb in 2022. The current price corresponds to PB1 in 202266 times, current price space 27%, buy rating.
Risk tip: macroeconomic stall and sharp outbreak of adverse.
