\u3000\u3 Guangdong Shaoneng Group Co.Ltd(000601) 009 Bank Of Nanjing Co.Ltd(601009) )
Key elements of the report:
On April 16, 2022, Bank Of Nanjing Co.Ltd(601009) released the performance reports for the year 2021 and the first quarter of 2022.
In the first quarter of 2021 and 2022, the revenue increased by 18.74% and 20.39% year-on-year respectively, and the net profit attributable to the parent increased by 21.04% and 22.33% year-on-year respectively: on the income side, the net interest income increased by 14.39% and – 0.9% year-on-year, and the net fee income increased by 16.83% and 11.2% year-on-year. The rapid growth of revenue is mainly driven by scale expansion and investment income.
The net interest margin narrowed slightly month on month: according to the itemized data, loans continued to grow at a high speed, which promoted the increase of the proportion of loans. After one year of accumulation, bank deposits also achieved a high growth, which promoted the decline of the overall cost of the liability side. However, the rate of return on interest bearing assets fell more than that on liabilities, resulting in a slight narrowing of the net interest margin..
The reform of large retail strategy was accelerated: in the first quarter, the company added three branch outlets in Suzhou, and the coverage of county branches in Jiangsu Province increased from 80% at the end of 2020 to 90%. In 2022, it is planned to set up 47 new sub branches, and the total number of outlets exceeded 260 at the end of the year. The newly established branch network will become a new deposit and loan growth point of the company. By the end of the first quarter of 2022, 15 newly established sub branches had contributed 11.52% of the deposit increment; Contribute 25.32% of the loan increment.
Asset quality remained stable: the non-performing rate in the first quarter was 0.90%, down 1bp month on month. The concern rate was 1%, down 0.22 percentage points month on month. The overall provision coverage rate reached 398.41%, which continued to improve, and the risk offset capacity was further enhanced.
Profit forecast and investment suggestion: the company makes simultaneous efforts to the public and retail business, driving the rapid growth of intermediary business. Forecast eps1 in 202223 89 yuan / 2.21 yuan, according to the closing price of Bank Of Nanjing Co.Ltd(601009) a shares on April 15, 11.9 yuan, corresponding to 0.97 times Pb in 2022, 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.
