\u3000\u3 China Vanke Co.Ltd(000002) 142 Bank Of Ningbo Co.Ltd(002142) )
Quarterly highlights: 1. The company’s revenue increased by 15% year-on-year and PPOP increased by 17.8% year-on-year, basically in line with our expectations. Net profit increased by 20.8% year-on-year, returning to the profit growth rate before the epidemic; It basically matches the growth rate of PPOP and does not release profits by reducing provision. Net interest income and handling charges were the main drag items, with a year-on-year increase of 13% and 1% respectively. The low growth rate of net interest income is mainly due to the high base of interest margin in the same period last year. Looking forward to the second quarter and the whole year, the growth rate of interest income in Q2 is expected to gradually pick up with the elimination of the base effect. The weak growth rate of net handling fee is affected by the downturn of the capital market. 83% of the company’s handling fee income comes from the contribution of consignment sales. The weak market situation has a great impact on the company’s income. This year, the growth of service charges in the industry is expected to be under pressure; But the biggest pressure is mainly concentrated in the first half of the year. On the whole, Q2 and beyond, the growth rate of revenue side is expected to rise quarter by quarter, and the main contribution of interest income; The drag of handling charges decreased. 2. 1q22 net interest income achieved a high growth of 15.4% month on month, driven by the high growth of scale, and the net interest margin also rebounded month on month against the trend. Among them, the scale of interest bearing assets increased by 10.3% month on month, and the annualized net interest margin in a single quarter rose sharply by 12bp to 1.83% month on month at the low level in the fourth quarter. The sharp rise in net interest margin on a month on month basis was mainly driven by the debt side: the return on assets at the annualized time point in a single quarter decreased by 11bp to 3.68% on a month on month basis; The interest payment rate on the liability side also fell 27bp to 2.06% month on month. The downward trend on the liability side was jointly contributed by the increase in the proportion of deposits and the decrease in the cost of active liabilities. 3. The growth rate of total asset scale was a new high in recent six years, with a year-on-year increase of + 31%. Both deposits and loans are booming. In the first quarter, new loans increased by 67.2 billion, an increase of 18.4 billion year-on-year. In terms of breakdown, corporate, retail and bills increased by 50.2 billion, 6.6 billion and 10.3 billion respectively. Corporate is the largest, followed by bills. Deposits increased by 245.8 billion in the first quarter, an increase of 133.7 billion over the same period last year; The newly added scale doubled compared with last year; It also far exceeds the scale of new loans. Deposits made a good start in the first quarter.
Insufficient quarterly reports: 1. The growth rate of net non interest income decreased as scheduled: the handling fee was the main drag, and the growth of net non interest income was stable. 1q22 net non interest income + 20.4% year-on-year (vs + 51.5% year-on-year in 2021): the growth rate of handling charges dropped to 1%; Net other non interest income increased by 30% year-on-year Bank Of Ningbo Co.Ltd(002142) handling fee income, 83% of which comes from consignment business income, is greatly affected by the fluctuation of capital market. 2. Bank Of Ningbo Co.Ltd(002142) NPL generation margin is rising. It is estimated that the weakening of economy in the next 21 years will put some pressure on the marginal increase of asset quality of small and Micro customers of the company; Ningbo’s risk control has always been prudent, and the identification and disposal of non-performing products are very timely. At present, it is in the stage of increasing non-performing products disposal. Since the fourth quarter of the year, the company has increased the disposal and generation of non-performing products, which has increased from the previous level of 0.6% – 0.8% to about 1%; The company disposed in a timely manner, and the stock non-performing balance remained low. The non-performing rate was flat month on month, at a low level of 0.77%, and the asset quality report was clean. The net generation of annualized non-performing products increased by 14bp to 1.08% month on month, but the increase converged compared with 4q21.
Investment advice: Bank Of Ningbo Co.Ltd(002142) is a high-quality bank that we continue to recommend, and the market-oriented mechanism makes its growth most sustainable Bank Of Ningbo Co.Ltd(002142) assets are of excellent quality and have undergone periodic tests. With high profitability and sustained growth, the company has flexible market mechanism and excellent management. It is a high-quality bank representative of scarcity. Company 2022e, 2023epb1 53X/1.33X； PE10. 21x / 8.68x (City Commercial Bank pb0.72x / 0.64x; pe5.97x / 5.25x) Bank Of Ningbo Co.Ltd(002142) deepen the construction of diversified profit center. Wealth management is a new runway. In the future, the company can continue to maintain rapid growth, and we maintain key recommendations.
Tips: the company’s operating risk is lower than expected.
