\u3000\u3 Guangdong Shaoneng Group Co.Ltd(000601) 658 Postal Savings Bank Of China Co.Ltd(601658) )
Core view
The growth rate of net profit continues to reflect the characteristics of large growth banks. In the first quarter of 2022, the operating revenue was 85.2 billion yuan, a year-on-year increase of 10.1%, and the growth rate was slightly lower than that of last year’s annual report by 1.2 percentage points; Among them, the net interest income was 68.7 billion yuan, a year-on-year increase of 4.1%; In the first quarter, the net profit attributable to the parent company was 25 billion yuan, with a year-on-year increase of 17.8%. The growth rate was slightly reduced by 0.9 percentage points compared with last year’s annual report, and also significantly increased by 6.0 percentage points compared with the two-year average growth rate of last year’s annual report, which continued to reflect the characteristics of large growth banks. The annualized roa0 in the first quarter of 202278%, with an annualized weighted average roe14.5% in the first quarter 82%, an increase of 0.04 percentage points and 0.02 percentage points respectively over the same period last year.
The growth rate of assets is leading among big banks. At the end of the first quarter of 2022, the total assets increased by 11.0% year-on-year to 13.3 trillion yuan, and the growth rate was at a high level among major banks. Among them, deposits increased by 10.2% year-on-year to 11.9 trillion yuan, and loans increased by 13.7% year-on-year to 6.8 trillion yuan. At the end of the first quarter, the core Tier-1 capital adequacy ratio was 9.61%, the Tier-1 capital adequacy ratio was 12.37%, and the capital adequacy ratio was 14.99%, all meeting the regulatory requirements.
The net interest margin was basically stable month on month. The average daily net interest margin of the company in the first quarter was 2.32%, a year-on-year decrease of 8bps, mainly due to the tail raising factor of the decline of net interest margin in the second quarter of last year. The net interest margin in the first quarter of this year was only 1bp lower than that in the fourth quarter of last year.
The net income from handling charges increased significantly. In the first quarter of 2022, the net income of handling charges was 9.1 billion yuan, with a year-on-year increase of 39.6%. First, the company’s current base of handling charges is still not high, and there is a large room for growth. Second, the company made up for this weakness and took the upgrading of wealth management system as the main line, and achieved rapid growth in agency insurance, financial management, credit card, investment bank, transaction bank, custody and other business income.
The cost income ratio was basically the same as that of the same period last year. In the first quarter of 2022, the business and management fee was 44.1 billion yuan, a year-on-year increase of 9.8%, and the cost income ratio was 51.8%, which was basically the same as that in the same period last year.
The quality of assets is still at a good level, and the provision is substantial. The non-performing rate in the first quarter disclosed by the company was 0.15%, an increase of 0.02 percentage points year-on-year; The company’s non-performing loan balance at the end of the first quarter was 55.8 billion yuan, an increase of 3.1 billion yuan over the end of the previous year; The non-performing loan ratio was 0.82%, unchanged from the end of the previous year; Concern loans accounted for 0.48%, an increase of 0.01 percentage points over the end of the previous year; The overdue rate was 0.93%, an increase of 0.04 percentage points over the end of the previous year. The provision coverage rate at the end of the first quarter was 414%, 5 percentage points lower than that at the end of the previous year. Overall, the asset quality data in the first quarter fluctuated, but the overall level was still good, and the provision coverage was very high and the provision was substantial.
Investment suggestion: the overall performance of the company in the first quarter has little change compared with the annual report. We maintain the profit forecast unchanged. It is expected that the net profit attributable to the parent company will be 86.2/97.3/109.2 billion yuan from 2022 to 2024, with a year-on-year growth rate of 13.2/12.9/12.2%; Diluted EPS is 0.88/1.00/1.13 yuan; The current share price corresponds to PE of 6.1/5.4/4.7x and Pb of 0.71/0.65/0.59x, maintaining the “buy” rating.
Risk tip: the weakening macroeconomic situation may have an adverse impact on the quality of bank assets.
