\u3000\u3 Guangdong Shaoneng Group Co.Ltd(000601) 988 Bank Of China Limited(601988) )
Net profit growth was basically stable. In the first quarter of 2022, the operating revenue reached 161.1 billion yuan, with a year-on-year increase of 2.1%, and the growth rate decreased by 5.0 percentage points compared with last year’s annual report, mainly due to the volatility of other non interest income; Among them, the net interest income was 109.9 billion yuan, a year-on-year increase of 5.5%; In the first quarter, the net profit attributable to the parent company was 57.8 billion yuan, with a year-on-year increase of 7.0%. The growth rate was lower than that of last year’s annual report, and slightly decreased by 0.5 percentage points compared with the two-year average growth rate of last year’s annual report. On the whole, the growth was basically stable. The annualized roa0 in the first quarter of 202289%, with an annualized weighted average roe12.5% in the first quarter 1%。
The growth rate of assets was slightly lower than the average level of the industry and expanded steadily. At the end of the first quarter of 2022, the total assets increased by 6.3% year-on-year to 27.5 trillion yuan, which was lower than the overall level of the industry. Among them, deposits increased by 7.1% year-on-year to 19.2 trillion yuan, and loans increased by 10.1% year-on-year to 16.5 trillion yuan. At the end of the first quarter, the core tier 1 capital adequacy ratio was 11.33%, the tier 1 capital adequacy ratio was 13.30%, and the capital adequacy ratio was 16.64%, all meeting the regulatory requirements.
The net interest margin stabilized. The average daily net interest margin of the company in the first quarter was 1.74%, a slight decrease of 4bps year-on-year. On a month on month basis, the net interest margin in the first quarter of this year was 1 bp lower than that in the fourth quarter of last year, and has remained basically stable since the second quarter of last year.
The net income from handling charges decreased slightly. The net fee income in the first quarter of 2022 was 26 billion yuan, a decrease of 6.8 percentage points over the same period last year. It is expected that it is mainly caused by factors such as fee reduction and profit transfer.
The cost income ratio increased slightly. In the first quarter of 2022, the business and management fee was 39.6 billion yuan, a year-on-year increase of 7.3%, and the cost income ratio was 24.6%, a slight increase of 1.2 percentage points year-on-year.
The non-performing loan ratio decreased and the provision coverage remained stable. According to the five level classification of loan quality, the company’s non-performing loan balance at the end of the first quarter of 2022 was 215.8 billion yuan, an increase of 7 billion yuan over the end of the previous year, and the non-performing loan ratio was 1.31%, a decrease of 0.02 percentage points over the end of the previous year. The provision coverage rate at the end of the first quarter was 188%, an increase of 1 percentage point over the beginning of the year.
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 231.5/244.2/256.1 billion yuan from 2022 to 2024, with a year-on-year growth rate of 6.9/5.5/4.9%; Diluted EPS is 0.75/0.79/0.83 yuan; The current share price corresponds to PE of 4.1/3.9/3.7x and Pb of 0.44/0.40/0.38x, maintaining the “buy” rating.
Risk tip: the weakening macroeconomic situation may have an adverse impact on the quality of bank assets.
