\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 919 Bank Of Jiangsu Co.Ltd(600919) )
Data overview
22q1 Bank Of Jiangsu Co.Ltd(600919) net profit attributable to parent company increased by 26.0%, up from – 4.7pc in 2021; Revenue growth was 11.0%, up from – 11.5pc in 2021; Roe (annualized) was 15.0%, with a year-on-year increase of 2.3pc; ROA (annualized) was 1.01%, with a year-on-year increase of 12bp. The Bank Of Jiangsu Co.Ltd(600919) non-performing rate at the end of 22q1 was 1.03%, down 5bp from the beginning of the year; The provision coverage rate was 330%, 22pc higher than that at the beginning of the year.
Profits maintained high growth
On the revenue side, the growth rate of 22q1 Bank Of Jiangsu Co.Ltd(600919) revenue was 11.0%, and the growth rate of revenue slowed down, but the growth of interest income was strong: ① the net interest income of 22q1 Bank Of Jiangsu Co.Ltd(600919) interest increased by 13.6% year-on-year, which was higher than that of commercial banks in the Yangtze River Delta; ② 22q1 Bank Of Jiangsu Co.Ltd(600919) medium income increased by 9.8% year-on-year, and the growth rate fell. It is speculated that it is affected by the fluctuation of capital market and the decrease of agency income; ③ 22q1 Bank Of Jiangsu Co.Ltd(600919) other non interest rates increased slightly by 1% year-on-year. It is speculated that corporate bond investment is dominated by allocation. Due to the decline of treasury bond interest rate, the growth rate of other non interest rates slowed down. Profit side: the growth rate of 22q1 Bank Of Jiangsu Co.Ltd(600919) net profit attributable to parent company was 26%, which was at the top level of listed urban commercial banks, mainly due to the low increase of asset impairment loss year-on-year, supporting the high growth of profit, and the asset impairment of 22q1 was – 10% year-on-year. Looking forward to the future, the repair of retail business is expected to drive the improvement of revenue. At the same time, the substantial thickening of provisions also lays a foundation for the release of future profits.
Interest rate spreads rebounded strongly
22q1 single quarter net interest margin (at the beginning and end of the period) rebounded 8bp to 1.84% compared with 21q4. Specifically: ① on the asset side, the yield of interest bearing assets in a single quarter of 22q1 (at the beginning and end of the period) rose 4bp to 4.11% compared with 21q4. Due to the pressure drop of bills and the optimization of loan structure, the proportion of bills at the end of 22q1 decreased 2pc to 6% compared with the beginning of the year. ② On the liability side, the debt cost ratio of interest payment in single quarter of 22q1 (at the beginning and end of the period) decreased by 4bp to 2.53% compared with 21q4. Due to the increase in the proportion of deposits, 22q1 deposits increased by + 10.3% compared with the beginning of the year, and the growth rate was 4.7pc faster than the total liabilities.
Strong public investment
At the end of 22q1, the total amount of Bank Of Jiangsu Co.Ltd(600919) loans, corporate loans, bills and retail loans increased by + 5%, + 14%, – 20% and – 2% respectively compared with the beginning of the year. The growth of corporate loans was strong, and the balance of retail loans decreased compared with the beginning of the year. It is speculated that it was affected by the weakening demand for personal mortgages and the rectification of Internet loans. With the steady growth force and the fading impact of the rectification of Internet loans, the growth rate of retail loans is expected to pick up, supporting the growth of the company’s revenue.
Asset quality improvement
The non-performing ratio at the end of 22q1 was – 5bp to 1.03% from the beginning of the year, and the non-performing amount at the end of 22q1 was – 0.5% from the beginning of the year. The forward-looking indicators were improved. The concern rate at the end of 22q1 was – 1bp to 1.33% compared with the beginning of the year, and the overdue rate was – 4bp to 1.13% compared with the beginning of the year. The provision was significantly thickened, and the provision coverage at the end of 22q1 was significantly increased by 22pc to 330% compared with that at the beginning of the year. Looking forward to the future, the asset quality is expected to be further improved.
Profit forecast and valuation
Bank Of Jiangsu Co.Ltd(600919) profit maintained high growth, interest rate spread rebounded strongly, investment in public was strong, and asset quality improved. Looking forward to the future, the repair of retail business is expected to drive the improvement of revenue. At the same time, the substantial thickening of provisions also lays a foundation for the release of future profits. It is estimated that the net profit of Bank Of Jiangsu Co.Ltd(600919) attributable to the parent company from 2022 to 2024 will increase by 25.5% / 16.3% / 16.4% year-on-year, corresponding to bps11.5% 45 / 12.85/14.48 yuan. Maintain the target price of 9.20 yuan, corresponding to 0.80 times Pb in 2022. The current price corresponds to pb0.00 in 2022 Space, 24% of the current price.
Risk tip: macroeconomic stall and sharp outbreak of adverse.
