\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 919 Bank Of Jiangsu Co.Ltd(600919) )
Quarterly summary: Bank Of Jiangsu Co.Ltd(600919) 2021q1 achieved a net profit of 6.584 billion yuan, a year-on-year increase of 26%. Among them, the net interest income increased by 13.6%, the net fee income increased by 9.8% and the operating income increased by 11.0% year-on-year. At the end of the year, total assets increased by 5.6%, total loans increased by 4.7% and total deposits increased by 10.3%. The year-end non-performing rate was 1.03%, the provision coverage rate was 330%, the allocation loan ratio was 3.39%, and the core tier 1 capital adequacy ratio was 8.41%.
Bank Of Jiangsu Co.Ltd(600919) 1 quarter performance continued to maintain rapid growth, and the performance contribution mainly came from the provision back feeding and scale growth brought by the improvement of asset quality. 1 highlights of quarterly report: asset quality continues to improve, risk defense ability is significantly improved, and net interest margin and deposit performance are also improved. Corporate loans may be temporarily affected by the epidemic. As one of the national urban commercial banks with the largest scale, the loan growth is still rapid. At the same time, we also need to pay attention to the impact and repair of the subsequent epidemic. In the first quarter, the company's capital decreased slightly, and there is still capital buffer demand. Pay attention to the process of debt to equity swap. The high performance growth drives the improvement of profitability, and the performance of revenue, asset quality and provision is positive. At present, the company's PB valuation in 2022 is only 0.66X, which is continuously recommended.
Key points supporting rating
The profitability is improved and the capital is slightly reduced. Pay attention to the process of debt to equity swap.
Roae15.5 was released in Q1 02%, with a year-on-year increase of 2.31 percentage points and roaa1.5% 01%, with a year-on-year increase of 12bp. The high performance growth drives the improvement of profitability. The core Tier-1 capital offset rate was 8.41%, a year-on-year decrease of 36bp, and the weighted risk assets increased by 16.2% year-on-year. There is a buffer capital demand, and we pay attention to the process of the company's debt to equity swap.
Asset quality continued to improve and provision coverage increased.
Bank Of Jiangsu Co.Ltd(600919) asset quality maintained an improvement trend. The non-performing rate decreased by 5bp to 1.03% compared with the previous year, and the proportion of special loans accounted for 1.34%, which was the same as that at the end of the previous year. Under the background of improving asset quality, the company's provision coverage continued to increase, 22 percentage points higher than that of the previous year to 330%, and the loan allocation ratio was 3.39%, an increase of 7bp. Compared with non-performing loans and total loans, the risk defense ability of the company was improved.
The net interest margin may improve.
Valuation
We predict that the company's EPS will reach 1.63/1.97 yuan in 2022 / 2023. At present, the share price corresponds to 0.66x/0.60x times of Pb in 2022 / 2023, maintaining the overweight rating.
Main risks of rating
The deterioration of asset quality caused by economic downturn exceeded expectations; Regulatory control exceeded expectations.
