\u3000\u3 China Vanke Co.Ltd(000002) 142 Bank Of Ningbo Co.Ltd(002142) )
The performance growth is in line with expectations. In the first quarter of 2022, the operating revenue reached 15.3 billion yuan, with a year-on-year increase of 15.4%, which was lower than that of last year’s annual report, mainly caused by the decline in the growth rate of net interest income and net handling fee income; In the first quarter, PPOP increased by 17.8% year-on-year; The net profit attributable to the parent company in the first quarter was 5.7 billion yuan, a year-on-year increase of 20.8%. Although the growth rate of the company’s revenue in the first quarter fell, it was basically in line with expectations, and the net profit attributable to the parent company still maintained a high growth rate. Weighted roe16 in the first quarter 6%, down 1.2 percentage points year-on-year.
The growth rate of assets was higher than the industry average, and the growth rate of deposits rebounded sharply. At the end of the first quarter of 2022, the total assets increased by 28.8% year-on-year to 2.22 trillion yuan, slightly higher than the previous period, significantly higher than the overall level of the industry, and the market share continued to increase. Among them, deposits increased by 25.3% year-on-year to 1.31 trillion yuan, which was significantly improved compared with the growth rate of 13.8% in the annual report. It is expected that the main reason is to strengthen the development of settlement accounts for public lines and promote the rapid growth of deposits; Loans increased by 26.3% year-on-year to 0.93 trillion yuan; At the end of the first quarter, the core tier 1 capital adequacy ratio was 9.93%, which was higher than the regulatory standard. Under the condition of high roe and capital adequacy, the subsequent asset expansion capacity was sufficient.
The growth rate of net interest income fell, and the investment income increased significantly. The company disclosed that the average daily net interest margin in the first quarter was 2.24%, a year-on-year decrease of 31bps, which was the main reason for the decline of revenue growth. However, the Bank Of Ningbo Co.Ltd(002142) net interest margin is highly volatile, so there is no need to pay too much attention. For example, the net interest margin in the first quarter rebounded sharply by 24bps compared with the fourth quarter of last year. The company holds a large number of trading assets. Under the condition of downward interest rate, this part of income has increased significantly year-on-year, making the investment income increase by 64% year-on-year, which continues to make a great contribution to the income growth.
The growth rate of net fee income fell. In the first quarter of 2022, the net income of handling charges increased by 0.9% year-on-year, and the growth rate fell sharply compared with the annual report. It is expected that the main reasons are the weakening of the capital market and the decline of the growth rate of income such as wealth management and financial management.
The generation of non-performing assets has accelerated, and the provision is still thick. The annualized NPL generation rate in the first quarter is estimated to have increased by 40bps to 1.08% year-on-year, and the marginal generation speed has accelerated. The non-performing rate of the company at the end of the first quarter remained at 0.77%, and the attention rate increased 3bps to 0.51% slightly compared with the beginning of the year. Since the index itself is very low, it is normal to fluctuate. The provision coverage rate of the company at the end of the period is 525%, which is basically the same as that at the beginning of the year. The safety cushion is thick, and there is still a lot of room to feed back profits.
Investment suggestion: we keep the profit forecast unchanged. It is estimated that the net profit attributable to the parent company from 2022 to 2024 will be 23.6/28/34.2 billion yuan, with a year-on-year growth rate of 20.9/20.5/20.0%; Diluted EPS is 3.46/4.20/5.06 yuan; The current share price corresponds to PE of 10.1/8.4/6.9x and Pb of 1.51/1.30/1.12x. The growth of the company ranks in the forefront of listed banks, and its fundamentals are based on leading peers, maintaining a “buy” rating.
Risk tip: the weakening macroeconomic situation may have an adverse impact on the quality of bank assets.
