\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 036 China Merchants Bank Co.Ltd(600036) )
Key elements of the report:
On April 23, 2022, China Merchants Bank Co.Ltd(600036) released the performance report for the first quarter of 2022.
Key investment points:
Revenue and profit increased steadily, and cost income was re optimized: in the first quarter of 2022, the operating revenue was 91.990 billion yuan, and the net profit attributable to the parent company was 36.022 billion yuan, with a year-on-year increase of 8.54% and 12.52% respectively. The non-performing rate was 0.94%, up 0.03 percentage points month on month. The cost income ratio is 26.10%. Assets grew steadily and the net interest margin narrowed slightly: the net interest margin in the first quarter of 2022 was 2.51%, down 1 basis point year-on-year. Mainly due to the cumulative impact of the downward market interest rate, the yield of interest bearing assets decreased. At the same time, the group continued to increase the proportion of customer deposits in interest bearing liabilities, making up for the impact of the decline in the rate of return on interest bearing assets to a certain extent. It is expected that the net interest margin will remain under pressure in 2022, and the adjustment of asset liability structure will be further increased to stabilize the interest margin. In addition, loans increased by 3.38% and deposits increased by 5.25% over the beginning of the year.
Weak net handling fee income: in the first quarter of 2022, the net handling fee income increased by 5.49%, including a year-on-year decrease of 11.11% in wealth management business income, a year-on-year increase of 47.55% in asset management business income and a year-on-year increase of 11.32% in custody business income.
Slight fluctuation of non-performing: in the first quarter of 2022, the non-performing rate rebounded slightly, and the group prudently increased the provision for credit losses for real estate risk customers. The provision coverage rate was 463%, down nearly 21 percentage points month on month.
Profit forecast and investment suggestions: in the first quarter of 2022, the performance growth is basically in line with expectations. The rapid growth of big wealth management business in 2021 has formed a certain high base. In the future, on the basis of giving full play to its channel advantages, China Merchants Bank will further improve its advantages in investment research and asset allocation, and promote the rapid growth of big wealth management business. It is predicted that the EPS in 2022 / 23 will be 5.30 yuan / 6.01 yuan. According to the closing price of China Merchants Bank Co.Ltd(600036) a shares on April 22, 42.5 yuan, corresponding to 1.32 times Pb in 2022, the overweight rating will be maintained.
Risk factors: affected by covid-19 epidemic, the global economic recovery was less than expected, resulting in sharp fluctuations in bank assets.
