\u3000\u3 China Vanke Co.Ltd(000002) 142 Bank Of Ningbo Co.Ltd(002142) )
Event overview
Bank Of Ningbo Co.Ltd(002142) released the first quarterly report of 2022: 22q1 achieved an operating revenue of 15.263 billion yuan (+ 15.40%, YoY), an operating profit of 5.906 billion yuan (+ 15.37%, YoY), and a net profit attributable to the parent company of 5.720 billion yuan (+ 20.80%, YoY); At the end of the first quarter, the total assets were 2.22 trillion yuan (+ 28.82%, yoy; + 10.10%, QoQ), deposits were 1.30 trillion yuan (+ 25.21%, yoy; + 23.34%, QoQ), and loans were 929914 billion yuan (+ 26.27%, yoy; + 7.79%, QoQ). 22q1 net interest margin 2.24% (- 31bp, YoY); The non-performing loan ratio is 0.77% (+ 0bp, QoQ), the provision coverage ratio is 524.78% (-0.74pct, QoQ), and the allocation loan ratio is 4.06% (+ 0.03pct, QoQ); Capital adequacy ratio 14.92% (-0.52pct, QoQ); Annual roe16 63%(-1.23pct，YoY)。
Analysis and judgment:
The interest collection business is stable, the medium income is affected, the growth is weak, the impairment is more, and the performance is increased with high quality
Bank Of Ningbo Co.Ltd(002142) in the first quarter, the revenue and PPOP were + 15.4% / + 18.1% year-on-year respectively, 13 PCT / 12.4 PCT slower than that of 2021, but still maintained rapid growth. Among them, the net interest income in Q1 was + 12.6% year-on-year, a decrease of 4.8pct compared with the previous year. Under the high interest margin base, it was mainly supported by increasing loan investment and table expansion. Non interest income was + 20.3% year-on-year, down 31.2pct from the high growth rate of the previous year, mainly due to the drag of medium income, and the net handling fee income was basically the same as that of the same period of the previous year (+ 0.9%, YoY). Considering that more than 80% of the handling fee income of the company in 2021 came from the agency business, the weak capital market in the first quarter is common in the industry, and the constraints on the big wealth business are expected to be under pressure, It can be seen that the sharp decrease in the handling fee expenditure disclosed by the company is also due to the decrease in the handling fee expenditure of agency business. We believe that the revenue growth of subsequent companies is expected to increase steadily with the stabilization of interest margin and the recovery of non interest business growth.
In terms of expenditure, Q1 impairment provision was + 22.2% year-on-year, which remained strong. Under the superposition of tax exemption effect, the income tax increased negatively year-on-year, the net profit attributable to the parent achieved a rapid growth of + 20.8%, and the performance quality was high.
In Q1, there was a boom in public deposits and loans, and the optimization of debt structure helped the month on month rise of interest margin
The total assets in the first quarter increased from + 28.8% to 2.22 trillion yuan year-on-year, further accelerating on the basis of + 23.9% in 2021, and the scale reached a new high. The company’s credit supply was strong in the first quarter, with a year-on-year increase of 26.3% and a quarter on quarter increase of + 7.79%, slightly higher than that in the same period of last year; Investment assets and interbank assets were + 24.0% / + 188.4% year-on-year respectively. In terms of the loan increment structure, the Q1 loan increased by 67.2 billion yuan, an increase of about 18.4 billion yuan year-on-year. While the asset side allocated additional loans, 74.8% of the loan increment was invested in corporate loans, an increase of 8.3pct compared with 21q1. Corporate, bill and retail loans were + 27.9% / + 57.1 / 18.7% year-on-year respectively, and + 10.8% / + 15.8% / + 2.0% compared with the beginning of the year. The investment in corporate business was strong, and the investment in retail loans was weak. The deposit on the liability side performed prominently, with the scale of Q1 + 25.2% / + 23.3% month on month, respectively. The net increase in a single quarter was close to twice the annual increment of 2021, reflecting the strong ability to collect deposits. The corresponding scale of active liabilities decreased compared with the beginning of the year, and the proportion of deposit on the liability side rebounded by 6.5pct to 63.4% compared with the beginning of the year. The optimization of debt structure further helped to significantly increase the interest margin. The net interest margin in the first quarter disclosed by the company was 2.24%, with a year-on-year decrease of 31bp under the high base, which was due to the decline of asset side yield; However, according to the quarterly net interest margin calculated according to the average balance at the end of the initial period, Q1 rebounded sharply by 11bp month on month. While the return on assets continued to fall, the debt cost ratio improved significantly and contributed to the interest margin.
Q1 strong write off, strong accrual and excellent asset quality
The company’s asset quality remained at a low and excellent level, and the Q1 non-performing rate was 0.77%, unchanged at the beginning of the year; The proportion of concern category increased slightly to 0.51% compared with that at the beginning of the year, but the absolute level was low. The provision for write off of non-performing loans increased to 1420024 times of the provision for write off of non-performing loans at the beginning of the year, and the provision for write off of non-performing loans increased to 1420024 times of that at the beginning of the year, which was basically 142.06 times higher than that at the beginning of the year.
Investment advice
In the first quarter, Bank Of Ningbo Co.Ltd(002142) benefited from the regional economic advantages and strong asset acquisition ability, and maintained the high investment of assets and the high growth of performance. Although the medium income growth was slightly weak due to macro factors, on the one hand, the prosperity of deposits and loans and the month on month recovery of interest margin supported the core interest collection business; On the other hand, clean stock statements and vigorous disposal will continue the competitive advantage of low non-performing and high provision, which will ensure high-quality growth of future performance. In view of the performance of the first quarterly report, we maintain the forecast of the company’s revenue of 60.5/70.4/82 billion yuan in 22-24 years and the forecast of net profit attributable to the parent of 23.5/28.3/34.1 billion yuan, with a corresponding growth rate of 20.1% / 20.4% / 20.6%; Eps3.22-24 years The forecast of 44 / 4.17/5.05 yuan corresponds to the closing price of 35.15 yuan / share on April 26, 2022, and Pb is 1.52/1.32/1.14 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.
