\u3000\u3000 Ping An Bank Co.Ltd(000001) Ping An Bank Co.Ltd(000001) )
Net profit growth exceeded expectations. In the first quarter of 2022, the revenue was 46.2 billion yuan, with a year-on-year increase of 10.6%, and the growth rate increased slightly by 0.3 percentage points compared with last year's annual report; In the first quarter, PPOP increased by 13.3% year-on-year, up 0.8 percentage points from last year's annual report; In the first quarter, the net profit attributable to the parent company was 12.9 billion yuan, a year-on-year increase of 26.8%, and the growth rate was 1.2 percentage points higher than that of last year's annual report. Considering the low year-on-year base of last year's annual report, the two-year average growth rate of net profit attributable to the parent company last year was 13.5%. In contrast, the performance growth rate in the first quarter of this year exceeded our expectations. Weighted roe14 in the first quarter 1%, up 1.8 percentage points year-on-year.
The scale of assets expanded steadily and the growth of deposits accelerated. In the first quarter of 2022, the total assets increased by 11.9% year-on-year to 5.12 trillion yuan, and the growth rate remained basically stable; Retail AUM still maintained double-digit growth. At the end of the first quarter, retail AUM reached 3.36 trillion yuan, a year-on-year increase of 20%. In addition, deposits increased by 15.0% year-on-year to 3.18 trillion yuan, especially the average daily deposits also increased by 14.5% year-on-year, showing excellent performance; Loans increased by 13.5% year-on-year to 3.15 trillion yuan; At the end of the period, the core tier 1 capital adequacy ratio was 8.64%, basically the same as that at the beginning of the year.
The net interest margin rebounded month on month, and the growth rate of net income from handling fees fell somewhat. The company's average daily net interest margin in the first quarter was 2.80%, a year-on-year decrease of 7bps, but increased by 6bps month on month compared with the fourth quarter of last year. The increase in net interest margin was mainly due to the company's continued efforts to strengthen the development of retail business and the improvement of personal loan yield. In terms of handling fees, the net income of handling fees in the first quarter of 2022 increased by 4.8% year-on-year, down from last year's annual report. It is expected that the depression of the capital market will affect the income related to wealth management.
Asset quality remained stable on the whole. The estimated non-performing rate in the first quarter of 2022 was 1.82%, an increase of 73 BPS year-on-year, mainly due to the recurrence of the epidemic since this year and the fluctuation of the external environment faced by the operation. The company's provision coverage at the end of the first quarter reached 289%, an increase of 1 percentage point over the beginning of the year. In addition, the company's non-performing rate at the end of the first quarter was 1.02%, unchanged from the beginning of the year; The attention rate was 1.41%, down 1bp from the beginning of the year; The overdue rate was 1.62%, up 1bp from the beginning of the year. The marginal generation of non-performing assets of the company is accelerated, but the asset quality is generally stable.
Investment suggestion: maintain the "overweight" rating. The company's performance growth exceeded expectations. We slightly raised the annual profit forecast. It is estimated that the net profit attributable to the parent company from 2022 to 2024 will be 43.7/51.3/60.1 billion yuan, with a year-on-year growth rate of 20.4/17.2/17.3%; Diluted EPS is 2.11/2.49/2.95 yuan; The current share price corresponds to PE of 7.0/5.9/5.0x and Pb of 0.79/0.71/0.63x, maintaining the "overweight" rating.
Risk tip: the continued weakening of the macroeconomic situation may have an adverse impact on the quality of bank assets.
