\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 919 Bank Of Jiangsu Co.Ltd(600919) )
Key investment points
Performance overview
Bank Of Jiangsu Co.Ltd(600919) 2021 annual report: net profit attributable to parent company + 30.7% year-on-year, growth rate + 0.2pc month on month; Revenue + 22.6% year-on-year, with a growth rate of – 2.1pc month on month; Roe 12.6%, year-on-year + 0.7pc; ROA 0.82%, year-on-year + 11bp; The non-performing amount was – 1.5% month on month, the non-performing rate was 1.08%, the month on month ratio was – 4bp, the provision coverage rate was 308%, and the month on month ratio was + 12pc.
Profits continued to rise
Bank Of Jiangsu Co.Ltd(600919) 2021a’s profit growth rate further increased by 0.2pc to 30.7% on the basis of the high growth rate in the first three quarters, and the profit growth rate was the highest among the listed companies with disclosed performance; The revenue growth rate was – 2.1pc to 22.6% month on month, which was attributed to the slowdown in the growth of interest income. The promotion of retail strategy and better asset quality will continue to support profit growth. Profit drivers: ① the drag of provision subsided, and the growth rate of asset impairment loss in a single quarter changed from 9% year-on-year in 21q3 to 17% year-on-year in 21q4; ② The growth rate of non interest rate increased, with 21a Bank Of Jiangsu Co.Ltd(600919) non interest rate + 21.6% year-on-year and + 5.2pc month on month, mainly due to the increase of medium income growth rate.
Profit drag factors: the 21q4 net interest margin narrowed month on month, and the 21q4 net interest margin (at the beginning and end of the period) fell -4bp to 1.76% month on month, due to the decline in the yield of interest bearing assets. On the asset side, the yield of interest bearing assets in 21q4 increased from – 11bp to 4.07% month on month. Due to the increase in the proportion of low-yield bill assets, 21q4 bills increased by + 44% month on month, 43pc faster than the total loans. On the liability side, the cost ratio of interest bearing liabilities in 21q4 rose -6bp to 2.57% month on month. It is speculated that it is mainly due to the company’s reduction in the proportion of structured deposits and the grasp of the market band to reduce the cost ratio of interbank liabilities.
Retail strategy promotion
Bank Of Jiangsu Co.Ltd(600919) continued to promote the transformation of retail strategy, specifically: ① the proportion of retail loans increased, 21q4 Bank Of Jiangsu Co.Ltd(600919) retail loans increased by + 3.2% month on month, 1.5pc faster than the total loans. ② The territory of consumer finance expanded. In November 2021, the registered capital of Suyin Kaiji consumer finance company controlled by Bank Of Jiangsu Co.Ltd(600919) increased from 600 million yuan to 2.6 billion yuan. The expansion of capital will strongly support the investment of consumer loans. Meanwhile, the cumulative issuance of Bank Of Jiangsu Co.Ltd(600919) credit cards increased by + 24% year-on-year, maintaining a high growth rate. ③ Wealth management developed rapidly, with 21a Bank Of Jiangsu Co.Ltd(600919) medium income + 40% year-on-year and growth rate + 18.9% month on month. At the same time, according to the financial report disclosure, Bank Of Jiangsu Co.Ltd(600919) retail AUM increased by 18% year-on-year, of which the asset scale and number of customers of the company’s private wealth increased by more than 26%.
Bad continuous double drop
① in terms of non-performing items, Bank Of Jiangsu Co.Ltd(600919) 21q4 non-performing amount decreased by 1.5% month on month, and the non-performing rate decreased -4bp to 1.08% month on month. The non-performing items decreased twice for four consecutive quarters. In terms of forward-looking indicators, the 21q4 Bank Of Jiangsu Co.Ltd(600919) concern rate rose to 1.34% month on month + 7bp, and the overdue rate remained unchanged at 1.17%. The reason behind the rise in the concern rate month on month is speculated to be the rising pressure on the generation of non-performing retail loans under economic pressure, as well as the prudent consideration of risks to strengthen the identification of non-performing real estate. ② In terms of provision, Bank Of Jiangsu Co.Ltd(600919) provision coverage increased from + 12pc to 308% month on month, and the provision increased significantly, reaching the best level since listing. Looking forward to the future, the Bank Of Jiangsu Co.Ltd(600919) non-performing rate is expected to be stable and good.
Profit forecast and valuation
It is estimated that the net profit of Bank Of Jiangsu Co.Ltd(600919) attributable to the parent company from 2022 to 2024 will increase by 20.4% / 16.4% / 16.6% year-on-year, corresponding to bps11.5% 44 / 12.78 / 14.35 yuan. Maintain the target price of 9.20 yuan, corresponding to 0.81 times Pb in 2022. The current price corresponds to pb0.00 in 202264 times, current price space 26%, buy rating.
Risk tip: macroeconomic stall and sharp outbreak of adverse.
