\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 926 Bank Of Hangzhou Co.Ltd(600926) )
Performance overview
2022q1 Bank Of Hangzhou Co.Ltd(600926) net profit attributable to parent company increased by 31.4% year-on-year, 1.6pc higher than 2021a; The revenue increased by 15.7% year-on-year, and the growth rate decreased by 2.6pc compared with 2021a; Roe (annualized) 16.2%, up 2.4pc year-on-year; ROA (annualized) 0.92%, an increase of 8bp year-on-year. At the end of 2022q1, the Bank Of Hangzhou Co.Ltd(600926) non-performing rate was 0.82%, a decrease of 4bp compared with the beginning of the year, and the provision coverage rate was 580%, an increase of 12pc compared with the beginning of the year.
Earnings exceed expectations
2022q1 Bank Of Hangzhou Co.Ltd(600926) profit growth increased by 1.6pc to 31.4% over 2021a, exceeding market expectations due to increased tax contribution and non interest growth; The growth rate of 2022q1 Bank Of Hangzhou Co.Ltd(600926) revenue decreased by 2.6pc to 15.7% compared with 2021a, mainly due to the slowdown of interest income growth caused by the narrowing of interest margin. Looking forward to the future, wealth management has made great efforts, the superimposed provision level is sufficient, and Bank Of Hangzhou Co.Ltd(600926) profits are expected to maintain rapid growth.
Main supporting factors: (1) tax revenue, the contribution of tax revenue to profits increased. It is speculated that interest free income increased in the first quarter due to 2021q4 Bank Of Hangzhou Co.Ltd(600926) additional bonds. At the end of 2021, the proportion of Bank Of Hangzhou Co.Ltd(600926) bond investment in total assets increased by 2.1pc compared with that at the end of 2021q3. (2) Non interest income, 2022q1 Bank Of Hangzhou Co.Ltd(600926) non interest income growth increased by 0.5pc to 50.9% compared with 2021a. Among them: ① 2022q1 Bank Of Hangzhou Co.Ltd(600926) medium income growth rate maintained at 20%, mainly due to the increase of handling charges of financial management business. Looking forward to the future, considering that Bank Of Hangzhou Co.Ltd(600926) wealth related medium income base is low and there is large development space, with the development of wealth strategy, medium income is expected to maintain rapid growth and support revenue growth. ② Other non interest rate growth increased by 3.3pc to 90.5% compared with 2021a.
Main drag factors: (1) interest margin, 2022q1 Bank Of Hangzhou Co.Ltd(600926) single quarter net interest margin (calculated according to the standard at the beginning and end of the period) decreased slightly by 1bp to 1.53% compared with 2021q4, mainly because the growth rate of interest bearing liabilities was 1pc higher than that of interest bearing assets, and both the yield of interest bearing assets and the cost rate of interest bearing liabilities decreased by 8bp (calculated according to the standard at the beginning and end of the period). (2) Impairment, Bank Of Hangzhou Co.Ltd(600926) the growth rate of asset impairment loss in a single quarter changed from a year-on-year decrease of 23.4% in 2021q4 to a year-on-year increase of 5.5% in 2022q1, and the contribution of impairment loss to profit weakened.
Deposit and loan boom
(1) loans: at the end of 2022q1, the growth rate of Bank Of Hangzhou Co.Ltd(600926) loans maintained a high growth of 21%, of which 86% of the new loans were corporate loans. Looking forward to the future, the amount of major projects planned to be invested in Zhejiang in 2022 is significantly higher than that in 2021, and the increased investment in infrastructure will support the growth of Bank Of Hangzhou Co.Ltd(600926) credit. (2) Deposits: at the end of 2022q1, the year-on-year growth rate of Bank Of Hangzhou Co.Ltd(600926) deposits increased 2pc to 18% compared with the beginning of the year, mainly driven by corporate deposits. At the end of 2022q1, corporate deposits increased by 21% over the beginning of the year, including corporate demand deposits increased by 16%.
Excellent asset quality
(1) in terms of non-performing, the non-performing rate of 2022q1 increased -4bp to 0.82% compared with the beginning of the year, the attention rate remained unchanged at 0.38%, the overdue rate remained basically unchanged at 0.62%, and all indicators were at the optimal level of listed banks. (2) In terms of provision, the provision coverage rate of 2022q1 continues to increase by 12pc to 580% on the basis of the high at the beginning of the year, which is expected to remain the highest level of listed banks. At the same time, the non credit provision also increased significantly, and the 2022q1 Bank Of Hangzhou Co.Ltd(600926) non credit impairment loss accounted for 51%. Looking ahead, it is expected that sufficient provisions will lay the foundation for profit release.
Profit forecast and valuation
Bank Of Hangzhou Co.Ltd(600926) earnings exceeded expectations, deposits and loans flourished, and asset quality was excellent. With the development of wealth management, the level of superimposed provision is sufficient, and the profit is expected to maintain rapid growth. It is estimated that the net profit of Bank Of Hangzhou Co.Ltd(600926) parent company from 2022 to 2024 will increase by 25.2% / 18.1% / 18.5% year-on-year, corresponding to bps13.5% 72 / 15.33/17.26 yuan. Maintain the target price of 19.89 yuan, corresponding to 1.45 times Pb in 2022. The current price corresponds to PB1 in 202207 times, the current price space is 35%.
Risk tip: macroeconomic stall and sharp outbreak of adverse.
