\u3000\u3000 Ping An Bank Co.Ltd(000001) Ping An Bank Co.Ltd(000001) )
The year-on-year growth rate of revenue increased again, and the performance growth was strong
The company disclosed that in the first quarter report of 2022, the revenue and net profit attributable to the parent company increased by 10.57% and 26.83% year-on-year, and the year-on-year growth rate increased by 0.26pct and 1.22pct compared with the whole year of 2021. Among them, the net interest income and non interest business increased by 7.31% and 18.66% year-on-year, with a year-on-year growth rate of 1.26pct higher and 3.74pct lower than that in 2021. We believe that the strong growth of the company’s performance is mainly driven by the scale of interest bearing assets and the back feeding of provisions.
The net interest margin rose month on month, and the performance of credit supply was bright
The net interest margin of 22q1 company was 2.80%, an increase of 6BP compared with 21q4, mainly benefiting from the rise of loan interest rate. On the asset side, credit remained active, and the average daily balance of 22q1 loans increased by 13.65% year-on-year. Among them, the average daily balance of public and retail loans increased by 4.04% and 16.19% year-on-year, and the average yield increased by 2bp and 28bp compared with 21q4. Specifically, 70% of 22q1’s new loans to the public were invested in private enterprises, and the proportion of private enterprises’ loan balance to the public continued to rise to 73.1%. New retail loans tend to be new first loan and auto finance loans, which support the overall retail loan yield. In addition, the average daily balance of 22q1 credit card cycle and installment increased by 19.3% compared with last year, driving the rapid growth of credit card income.
On the liability side, due to fluctuations in the capital market and the migration of residents’ and enterprise funds to time deposits, the average balance of 22q1 time deposits increased by 19.04% year-on-year. However, as the company continued to strengthen cost control and promote the precipitation of low interest deposits, the average interest rate of 22q1 deposits decreased by 1bp year-on-year and slightly increased by 2bp month on month. Overall, the average balance of 22q1 deposits increased by 14.48% year-on-year, and the proportion of interest bearing liabilities increased to 68.16%. The debt structure was optimized. The increase in the proportion of low interest deposits led to the flat cost ratio of interest bearing liabilities month on month.
Retail AUM maintained a high growth rate, and the growth of high net worth customers was prominent
At the end of 22q1, retail AUM and private AUM increased by 19.91% and 20.82% year-on-year. The growth rate of private AUM continued to be higher than that of retail customers as a whole. At the end of 22q1, the number of private bank customers increased by 17.12% year-on-year, higher than 8.78% of retail customers. The average AUM of private bank households increased by 3.16% year-on-year. The growth of high net worth customers was prominent.
The asset quality remained stable and the real estate business risk was controllable as a whole
The non-performing rate at the end of 22q1 was 1.02%, which was the same as that at the end of 21q4. The proportion of concerned loans and overdue rate decreased by 1bp and increased by 1bp respectively. The consolidation of asset quality reduced the pressure of non-performing provision, and the impairment loss of 22q1 loan decreased by 0.33% year-on-year. At the same time, the write off of non-performing loans increased by 93.77% year-on-year in 22q1, keeping the provision coverage at a high level, and increased by 0.68pct to 289.10% month on month at the end of 22q1. In terms of real estate, the non-performing rate of public real estate on the balance sheet was 0.45%, which continued to remain low. The balance of off balance sheet non undertaking business risks decreased by 0.68% month on month, and the risk exposure continued to be compressed..
Investment suggestion: firm the fundamentals and release the confidence of performance
The growth rate of the company’s revenue reached a higher level, while the asset quality continued to be consolidated, laying a solid foundation for the release of performance. With the support of the group’s comprehensive financial and ecological advantages, the contribution of wealth management performance is expected to accelerate, and the year-on-year growth of net profit attributable to the parent company in 202224 will be adjusted from 19.34%, 17.40% and 14.61% to 24.60%, 19.77% and 15.50%. As of the closing on April 26, the company’s Pb (LF) was 0.93 times, maintaining 1.4 times the target Pb in 2022, corresponding to the target price of 26.35 yuan, maintaining the “buy” rating.
Risk warning: weak macro economy, insufficient credit demand and fluctuation of credit risk
