\u3000\u3000 Ping An Bank Co.Ltd(000001) Ping An Bank Co.Ltd(000001) )
Event:
On April 26, Ping An Bank Co.Ltd(000001) released the first quarterly report of 2022, realizing operating revenue of 46.207 billion yuan, yoy + 10.6%, and net profit attributable to parent company of 12.85 billion yuan, yoy + 26.8%. Weighted average return on net assets (annualized) 14.10% (YoY + 1.82pct).
Comments:
1. Revenue and profit growth increased quarter on quarter
In the first quarter, Ping An Bank Co.Ltd(000001) revenue, net profit before provision and net profit attributable to parent company increased by 10.6%, 13.3% and 26.8% respectively year-on-year, and the growth rate increased by 0.3pct, 1.6pct and 1.2pct respectively compared with 2021. The growth rate of revenue and profit was relatively good, and both achieved quarter on quarter improvement. In terms of the year-on-year growth rate of fine split profit, scale expansion and non interest income are the main contribution sub items, and the negative drag of net interest margin, operating expenses and provisions is narrower than that in 2021.
2. The scale expansion superimposed interest margin stabilized, driving the net interest income to increase by 7.3% year-on-year
In the first quarter of 2022, the asset side maintained a high expansion rate, and the net interest margin increased by 1bp to 2.80% quarter on quarter. Driven by the "stable increase in volume and price", the net interest income increased by 7.3% year-on-year to 31.942 billion yuan.
The asset side maintained a high growth rate. In the first quarter of 2022, Ping An Bank Co.Ltd(000001) asset side maintained a high growth rate, and the year-on-year growth rates of interest bearing assets and loans were 12.5% and 13.5% respectively, with a change of 1.7pct and - 1.4pct respectively compared with the end of the previous year. The proportion of credit has remained stable above 62% since 2021, accounting for 62.6% at the end of the first quarter. 1q increased credit by 91.047 billion yuan, a year-on-year decrease of 21.166 billion yuan; Among the new loans, corporate loans, retail loans and bills were 44.960 billion yuan, 31.50 billion yuan and 42.937 billion yuan respectively. As for the main types of retail credit, the balance of auto finance loans was 313637 billion yuan, up + 4.1% from the end of the previous year; The balance of housing mortgage loans was 282311 billion yuan, up + 1.1% from the end of the previous year; The balance of "Xinyi loan" was 165578 billion yuan, up + 4.1% from the end of the previous year
Strong ability to acquire core liabilities and optimize the debt structure. In the first quarter of 2022, Ping An Bank Co.Ltd(000001) interest bearing liabilities and deposits increased by 11.7% and 14.9% year-on-year respectively, with the growth rate increased by 1.5pct and 4.1pct respectively compared with the end of the previous year. Since the beginning of the year, under the pressure of overall stable deposit and deposit increase of joint-stock banks, deposits have achieved high growth against the trend, highlighting the ability to obtain core liabilities. 1q increased deposits by 185799 billion yuan, an increase of 118929 billion yuan year-on-year, and the proportion of new personal and corporate deposits was about 7:11. The deposit structure was optimized on a quarter on quarter basis. As of the end of 1q, the proportion of demand deposits increased by 0.3pct to 38.1% compared with the end of the previous year, and the proportion of retail deposits increased by 0.7pct to 26.7% compared with the end of the previous year.
Net interest margin increased by 1bp quarter on quarter, mainly benefiting from debt cost control. In the first quarter of 2022, Ping An Bank Co.Ltd(000001) net interest margin was 2.80% (quarter on quarter ratio + 1bp, year-on-year - 7bp). The rate of return on interest bearing assets is 4.94% (quarter on quarter ratio - 1bp, year-on-year - 9bp), and the rate of return on loans is 6.10% (quarter on quarter ratio - 13bp, year-on-year - 35bp); The cost ratio of interest bearing liabilities is 2.18% (quarter on quarter ratio - 3bp, year-on-year - 4bp), and the cost ratio of deposits is 2.05% (quarter on quarter ratio + 1bp, year-on-year - 1bp). The company actively promotes the reconstruction of asset liability operation, and debt cost control plays an important role in stabilizing the net interest margin.
3. Non interest income increased by 18.7% year-on-year, mainly benefiting from the increase in investment income
The net income from handling fees and commissions increased by 4.8% year-on-year to 8.887 billion yuan. In terms of consignment business, the agency fund income was 1.086 billion yuan (yoy-10.1%), the agency insurance income was 717 million yuan (YoY + 46.0%), and the consignment wealth management income was 218 million yuan (YoY + 23.2%). On the whole, in the case of relatively weak capital market in the first quarter, the middle income still showed good resilience.
By the end of 1q, the number of Ping An Bank Co.Ltd(000001) retail customers had increased by 1.6% to 120 million compared with the end of the previous year, among which the number of qualified customers of private banks had increased by 5.0% to 73200 compared with the end of the previous year. Accordingly, AUM of retail customers increased by 5.6% to 3.36 trillion yuan compared with the end of the previous year, and AUM of private banks increased by 6.0% to 1.49 trillion yuan compared with the end of the previous year.
Net other non interest income increased by 51.9% year-on-year to RMB 5.378 billion, mainly due to the increase in investment income brought by bond and fund investment, bill discount and other businesses.
4. The non-performing rate remains at the lowest level of 1.02%, and the overall risk of real estate related assets is controllable
As of the end of 1q, Ping An Bank Co.Ltd(000001) NPL ratio was 1.02%, unchanged quarter on quarter. In terms of non-performing related indicators, the proportion of concerned loans decreased by 0.01pct to 1.41% compared with the end of the previous year, the proportion of overdue loans increased by 0.01pct to 1.62% compared with the end of the previous year, the proportion of loans overdue for more than 60 days increased by 0.06pct to 0.93% compared with the end of the previous year, and the proportion of loans overdue for more than 90 days increased by 0.04pct to 0.78% compared with the end of the previous year. Since the beginning of the year, the pressure of macroeconomic operation has increased, and the repayment ability of some enterprises and individuals has been under pressure. Ping An Bank Co.Ltd(000001) although individual non-performing related indicators have increased slightly month on month, the overall asset quality has remained stable, and the non-performing level is at a low level in recent years.
During the reporting period, the company accrued credit impairment losses of 12.763 billion yuan, a year-on-year increase of 3.7%. By the end of 1q, the provision coverage ratio had increased slightly by 0.7pct quarter on quarter to 289.10%, maintaining a good level of risk offset.
In terms of the quality of real estate related assets: (1) the balance of the company's actual and contingent credit, self operated bond investment, self operated non-standard investment and other businesses bearing credit risk was 345469 million yuan (compared with the end of the previous year + 4.380 billion yuan), of which the balance of loans to public real estate was 292.82 billion yuan (compared with the end of the previous year + 3.897 billion yuan), accounting for 9.3% of the total loans, and the non-performing rate increased by 0.23 PCT to 0.45% compared with the end of the previous year; (2) The balance of businesses that do not bear credit risk, such as financial capital contribution, entrusted loans, cooperative agency management, consignment trusts and funds, and lead underwriting debt financing instruments, is 119865 billion yuan (compared with - 821 million yuan at the end of the previous year).
5. The capital adequacy ratio is generally stable, and the safety margin of core Tier-1 capital adequacy ratio needs to be improved
By the end of 1q, Ping An Bank Co.Ltd(000001) core tier 1 capital adequacy ratio / Tier 1 capital adequacy ratio / capital adequacy ratio were 8.64% / 10.54% / 13.28% respectively, with a change of 0.04pct / - 0.02pct / - 0.06pct respectively compared with the end of the previous year, and the overall capital adequacy level was generally stable. According to the list of China's systemically important banks (d-sibs) released by the people's Bank of China in October 2021, Ping An Bank Co.Ltd(000001) is classified into group 1, and the minimum core tier 1 capital adequacy ratio is 7.75%. Based on the static calculation of 1q end adequacy ratio, the safety margin is less than 1 percentage point. Considering the difference between the parent bank's caliber (8.44%) and the group's caliber (8.64%), the safety margin of core tier 1 capital adequacy ratio will be further narrowed. We believe that in order to maintain the endogenous capital replenishment ability, the company has a strong demand for maintaining a certain profit growth rate.
Earnings forecast, valuation and rating. In recent years, relying on multiple advantages such as financial technology empowerment and group collaboration, the company has vigorously promoted retail transformation. Asset quality continues to improve, wealth management has great development potential, and retail business continues to move in depth. In order to maintain the asset side expansion ability, the superimposed company needs to have a certain endogenous capital supplement ability, so as to maintain better profitability and strong growth demand. We maintain the company's EPS forecast of 2.23 yuan / 2.59 yuan / 2.99 yuan in 202224, corresponding to 0.78/0.70/0.62 times Pb. Maintain the "buy" rating.
Risk tip: the macro-economy is falling faster than expected, and the repayment ability of some enterprises and individuals is under pressure, which hinders the quality of assets.
