\u3000\u3000 Ping An Bank Co.Ltd(000001) (000001)
Event:
On January 13, Ping An Bank Co.Ltd(000001) released the performance express for 2021. In 2021, it realized an operating revenue of 169.383 billion yuan, a year-on-year increase of 10.3%, and a net profit attributable to the parent company of 36.336 billion yuan, a year-on-year increase of 25.6%.
Comments:
Revenue growth increased month on month, and profit growth remained high. The year-on-year growth rates of Ping An Bank Co.Ltd(000001) revenue and net profit attributable to parent company in 2021 were 10.3% and 25.6% respectively, with growth rates of 1.2pct and - 4.5pct respectively compared with 1-3q. The year-on-year growth rate of revenue has increased quarter by quarter since the second half of 2021; Although the profit growth rate decreased slightly month on month, it still maintained a high level. The year-on-year growth rates of Q4 single quarter revenue and net profit attributable to parent company in 2021 were 14.1% and 10.3% respectively.
The asset side maintained a high growth rate, and the proportion of loans rose to 62.3%. At the end of 2021, Ping An Bank Co.Ltd(000001) total assets and loans grew by 10.1% and 14.9% year-on-year respectively, with a slight decrease of 1.5pct and 0.3pct respectively compared with the end of 3q, and the overall growth is still at a high level. At the end of 2021, the proportion of loans in total assets increased by 0.9pct to 62.3% compared with that at the end of 3q, and the asset structure was further optimized. On the liability side, by the end of 2021, the year-on-year growth rates of total liabilities and deposits were 10.3% and 10.8% respectively, and deposits accounted for 65.4%. The proportion of deposits in the whole year was generally stable.
Asset quality continued to improve, and the non-performing rate fell to a low level in recent years. By the end of 2021, the non-performing loan ratio had decreased 3bp quarter on quarter to 1.02%, the lowest level since 2015; The deviation of loans overdue for more than 60 days is 0.85. The provision coverage increased by 20.1pct to 288.4% quarter on quarter, and the loan allocation increased by 0.13pct to 2.94% quarter on quarter, further improving the risk offset ability.
Earnings forecast, valuation and rating. 2021 is a crucial year for Ping An Bank Co.Ltd(000001) retail transformation and development in the new three years. The company deeply implements the "3 + 2 + 1" business strategy and creates a "five in one" new model integrating integrated banking, AI banking, remote banking, offline banking and open banking, so as to inject new momentum into the second take-off of retail business. The 2021 performance express shows that the profit growth rate remains at a high level and the asset quality continues to improve. Ping An Bank Co.Ltd(000001) has multiple endowment advantages such as financial technology empowerment and group collaboration, and the wealth management business has great development potential. The continuous deepening of retail business will form a strong support for the future development of the company. Maintain the EPS forecast of 1.91/2.19/2.46 yuan in 2021-23, corresponding to 1.0/0.9/0.8 times of Pb in 2021-23. The early real estate risk situation has a certain suppression on the company's stock price. At present, the phased release of real estate risk and the gradual repair of market pessimistic expectations will help boost the company's stock price performance and maintain the "buy" rating.
Risk tip: the macro-economy is down than expected, and the repayment ability of some enterprises and individuals is under pressure, which hinders the quality of assets.
