\u3000\u3000 Ping An Bank Co.Ltd(000001) (000001)
Event: Ping An Bank Co.Ltd(000001) disclosed the performance express of 2021. In 2021, the growth rate of revenue was 10.3%, and the growth rate of net profit attributable to the parent company was 25.6%. Our comments are as follows:
\u3000\u30001. The improvement of revenue growth is expected to be mainly driven by the growth of other non interest income. Ping An Bank Co.Ltd(000001) 2021q4 single quarter revenue growth was 14.1%, about 3pc higher than that of 21q3, which is expected to be mainly contributed by the growth of bond related income. On the one hand, in the fourth quarter of last year, the central bank lowered the reserve requirement and the market interest rate tended to decline, driving the increase of bond related investment income and fair value change profit and loss in the same proportion; On the other hand, in the fourth quarter of 2020, the market interest rate rose, the bond related income was less, and the base was low. We expect that the growth rate of net interest income in 21q4 is still down month on month, which is a drag on the growth of revenue. On the one hand, at the end of the fourth quarter of last year, the growth rate of Ping An Bank Co.Ltd(000001) total assets was 10.13%, down 1.6pc from that of 21q3, and the scale expansion rate further slowed down; On the other hand, it is expected that the net interest margin of 21q4 will continue to narrow year-on-year.
Looking forward to the future, Ping An Bank Co.Ltd(000001) starts the new three-year goal of "reshaping asset liability operation". While trying to reduce the cost at the liability side, it is also reducing the risk preference at the asset side. We expect that Ping An Bank Co.Ltd(000001) asset liability operation will be more sustainable in the future.
\u3000\u30002. Various indicators of asset quality are steadily improving. By the end of the fourth quarter of 2021, Ping An Bank Co.Ltd(000001) non-performing rate was 1.02%, the best since 2015, with a month on month decrease of 3 BP, and the quality of various assets such as real estate remained stable; The deviation of loans overdue for more than 60 days is 85%, far less than 100%, and the identification of non-performing loans continues to be strict. At the end of the fourth quarter of 2021, the provision coverage rate was 288.42%, an increase of about 20pc month on month, and the ability to resist risks was enhanced.
As for the exposure of real estate risks that the market is very concerned about, we believe that the possibility of significant fluctuations in the real estate market price in the future is low, and the risk pressure faced by bank real estate related loans will be much better than the pessimistic expectation of the market.
3.21q4 profit growth decreased month on month, which is expected to be mainly affected by the base effect. We expect that the credit cost of 21q4 is roughly the same as that of 20q4, and the provision is still maintained to a certain extent. However, considering the high base effect of 20q4 profit, the profit growth rate in the fourth quarter of 21 decreased by about 22 percentage points month on month.
Investment suggestion: Buy-A investment rating, 6-month target price of 26.41 yuan. We expect the company's revenue growth rate to be 10.32% and net profit growth rate to be 25.73% in 2022. We give the investment rating of Buy-A, and the six-month target price is 26.41 yuan, equivalent to 1.4xpb in 2022.
Risk tip: the progress of retail transformation is less than expected, and the asset quality is worse than expected
