\u3000\u3 China Vanke Co.Ltd(000002) 142 Bank Of Ningbo Co.Ltd(002142) )
Key elements of the report:
On April 8, 2022, Bank Of Ningbo Co.Ltd(002142) issued the annual performance report for 2021.
Key investment points:
Revenue increased by 28.4% year-on-year, and net profit increased by 29.9% year-on-year: on the revenue side, net interest income increased by 17.4% year-on-year, and net handling fee income increased by 30.3% year-on-year. The cost income ratio decreased by 1 percentage point year-on-year.
The fourth quarter net interest margin narrowed month on month: the fourth quarter net interest margin narrowed month on month, mainly due to the rising cost pressure on the liability side, in which the proportion of deposits decreased. Looking forward to the first half of 2022, the net interest margin may be affected by LPR reduction factors or there may be some downward pressure.
The growth rate of net handling fee income increased significantly: the company continued to improve the moat of wealth management business. The total financial assets (AUM) of the company’s individual customers were 656.2 billion yuan, an increase of 122.2 billion yuan or 23% over the end of the previous year. The contribution proportion of funds, insurance and other consignment products continued to rise. The company had 12974 private customers, an increase of 70%. The financial assets (AUM) of private bank customers was 146.4 billion yuan, an increase of 53%. The number of credit cards issued was 3.72 million, a year-on-year increase of 27%.
Higher provisions provide better support for performance growth: the non-performing rate fell to 0.77% at the end of 2021, a year-on-year decrease of 2bp. The generation rate of defects is also low. The provision coverage rate reached 525.52%, which remained high and had a strong ability to offset risks. The current stable asset quality is superimposed with sufficient provisions, and the subsequent non-performing assets and provision pressure are less, forming a good support for the sustained growth of future performance.
Profit forecast and investment suggestions: the company’s revenue and profit have maintained high growth, and the asset quality is excellent. The EPS forecast for 2022 / 23 is 3.5 yuan and 4.26 yuan, and the corresponding net assets per share are 23.53 yuan and 27.22 yuan respectively. According to the closing price of Bank Of Ningbo Co.Ltd(002142) A shares on April 8, 39.67 yuan, corresponding to 1.69 times and 1.46 times of Pb in 2022 and 2023 respectively, 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.
