\u3000\u3000 Ping An Bank Co.Ltd(000001) Ping An Bank Co.Ltd(000001) )
Event overview
Ping An Bank Co.Ltd(000001) released the first quarterly report of 2022: 22q1 achieved an operating revenue of 46.207 billion yuan (+ 10.57%, YoY), an operating profit of 16.34 billion yuan (+ 26.38%, YoY), and a net profit attributable to the parent company of 12.85 billion yuan (+ 26.83%, YoY). At the end of the first quarter, the total assets were 5.12 trillion yuan (+ 11.92%, yoy; + 3.99%, QoQ), deposits were 3.15 trillion yuan (+ 14.88%, yoy; + 6.27%, QoQ), and loans were 3.15 trillion yuan (+ 13.53%, yoy; + 2.97%, QoQ). Retail aum3 36 trillion yuan (+ 5.60%, QoQ). 22q1 net interest margin 2.80% (- 7bp, yoy; + 6BP, QoQ); The non-performing loan ratio is 1.02% (+ 0bp, QoQ), the provision coverage ratio is 289.10% (+ 0.68pct, QoQ), the allocation loan ratio is 2.94% (+ 0pct, QoQ), and the capital adequacy ratio is 13.28% (-0.06pct, QoQ); Annual roe14 10%(+1.82pct， YoY)。
Analysis and judgment:
The performance growth is accelerated, and the comprehensive expansion of channels enables customers to perform well
The company's Q1 revenue and net profit attributable to the parent company were + 10.6% / + 26.8% year-on-year, respectively, 0.3pct and 1.2pct higher than the annual growth rate in 2021. Among them: 1) under the strong growth of loans in the first quarter, the net interest income was + 7.3% year-on-year, an increase of 1.3pct over 2021. 2) Other non interest income continued to contribute to revenue by + 51.9% year-on-year. 3) The year-on-year growth rate of net handling fee income decreased from 4.8% to single digits, of which the wealth management income accounting for more than 20% of the medium income decreased by 6.8% year-on-year. Due to the active pressure reduction of the scale of non-standard products and the decline of fund sales caused by the fluctuation of the securities market, the agency fund income decreased by - 10% year-on-year. However, thanks to the creation of the professional team of "knowing insurance", the agency insurance and wealth management income achieved rapid growth, with a year-on-year increase of + 46% and 23% respectively. Combined with the business scale, the scale of assets under management of the company continued to increase rapidly in the first quarter, with retail AUM reaching 3.36 trillion yuan, a year-on-year increase of + 20%, including private AUM + 21%. It is worth noting that the group's comprehensive financial advantages continue to enable business expansion. Half of the increment of Q1 retail AUM comes from MGM mode, a slight decrease of 4.7pct compared with the same period. However, in the increment of retail, wealth and private bank customers, the comprehensive channel MGM mode also contributed 52.2% / 44.5% / 48.6% respectively, and the gain on basic retail and private bank customers was higher than that in the same period of last year, increased by 17pct and 2.4pct respectively. At present, the Ping An Bank Co.Ltd(000001) wealth management team is still expanding rapidly. Through professional team + technology empowerment, it will contribute to higher production capacity.
The recovery of retail pricing helped the recovery of interest rate spread, the rapid growth of deposits and the stable cost of liabilities
In the first quarter, the assets increased by + 11.9% year-on-year and 1.8pct month on month compared with 2021, which was mainly driven by the acceleration of investment assets. Among them, the year-on-year growth of loans + 13.5% continued to be faster than that of total assets, driving the proportion of assets to increase slightly year-on-year. Loans grew steadily at the beginning of the year. In terms of investment direction, retail loans still achieved a rapid year-on-year growth rate of + 14.6%. However, on a quarter on quarter basis, public and retail loans increased by + 4.5% / + 0.2% respectively compared with the beginning of the year. Retail loans accounted for only 3.5% of the net increase of 91 billion yuan in Q1 loans, far lower than 58% in the same period of the previous year, mainly due to the weak financing demand of residents under the impact of the epidemic at the beginning of the year, while the increase of general public loans and bills was basically the same. In the increment of retail loans, in addition to the small increase of mortgage year-on-year, the credit card loans fell over the seasonality, mainly due to the increase of new loans year-on-year. Deposit growth was relatively good, with a year-on-year increase of + 15% compared with the previous year, and the quarter on quarter increase of + 6.3% was also 3.8pct higher than the same period of the previous year, driving the increase in the proportion of liabilities. Therefore, although the deposit cost rate in Q1 increased slightly by 2bp, the interest payment rate was flat month on month under the optimization of debt structure. In the future, it is expected that the overall interest payment rate will continue to improve with the decline of deposit cost under the reform of deposit pricing mechanism. When the debt cost ratio was stable, the net interest margin in the first quarter was 2.80%, down 7bp year-on-year, but increased 6BP quarter on quarter, mainly driven by the upward return on assets. 22q1 asset side yield increased by 5bp to 4.94% month on month, of which the loan yield increased significantly by 14bp month on month, including + 2bp / + 28bp for public and retail loans respectively, or benefited from the launch of high-yield retail loans such as Xinyi loan.
The risks of housing related business are controllable, and the non-performing rate and provision rate continue to be stable
The non-performing rate of 22q1 was 1.02%, unchanged month on month at the beginning of the year. At the same time, the proportion of concerned loans was 1.41%, slightly decreased by 1bp month on month, and the overdue rate was 1.62%, slightly increased by 1bp month on month. Overall, various apparent indicators remained stable. Structurally, the quality of retail loans was stable, and the non-performing rate decreased by 1bp to 1.2% compared with the beginning of the year. Only other non-performing loans increased; Generally, the non-performing ratio of corporate loans increased by + 5bp to 0.87% month on month, of which the non-performing ratio of corporate real estate loans increased by 23bp to 0.45% month on month. While the overall risk level was low, Ping An Bank Co.Ltd(000001) also took the initiative to reduce the risk exposure of real estate business. The balance of real estate business with credit risk in Q1 was 345.5 billion yuan, accounting for 6.75% of total assets, a further decrease of 0.18pct compared with the beginning of the year, mainly due to the decrease in the proportion of public real estate loans, At the same time, the balance of business without credit risk decreased by 0.68% month on month.
Due to the strong write off in Q1, which doubled year-on-year, the non-performing generation rate of 1.82% added back to write off was also nearly doubled year-on-year, but it fell down compared with 21q4, and the corresponding provision coverage increased slightly by 0.7pct to 289% month on month.
Investment advice
Ping An Bank Co.Ltd(000001) the highlights of the first quarterly report focus on: 1) the volume of retail business enabled by comprehensive financial and ecological advantages expanded rapidly, AUM maintained a high growth rate of 20%, and both revenue and profit increased; 2) With the recovery of retail loan pricing and the optimization of deposit assisted debt structure, the interest rate spread stabilized and rebounded; 3) Bad in the real estate sector rose, but the exposure was reduced and the stock risk was controllable. Benefiting from the accelerated release of profits, the company's core tier 1 capital adequacy ratio rose by 4bp to 8.64% month on month for the first time. At the same time, the board of directors considered and approved the plan to issue financial bonds not exceeding 5% of total liabilities and tier 2 capital bonds not exceeding 5% of risky assets, which will further enrich the capital and support the growth of credit supply and statement expansion.
We continue to be optimistic about the company's advanced retail transformation and the continuous deepening and implementation of the financial + technology strategy. In view of the steady progress of the company's strategy, we maintain the prediction of the company's revenue of 185.9/203.3/224 billion yuan in 22-24 years and the prediction of the net profit attributable to the parent company of 42.2/509/62.7 billion yuan, with a corresponding growth rate of 16.2% / 20.5% / 23.1%; The prediction of EPS of 2.13/2.58/3.18 yuan in 22-24 years corresponds to the closing price of 14.73 yuan / share on April 26, 2022, and Pb is 0.78/0.69/0.61 times respectively, maintaining the "buy" rating of the company.
Risk tips
1. The risk that the future repair of the overall economy is less than expected and the credit cost increases significantly;
2. Major business risks of the company, etc
