\u3000\u3000 Bank Of Ningbo Co.Ltd(002142) (002142)
Matters:
On January 17, Bank Of Ningbo Co.Ltd(002142) released the performance express for 2021. In 2021, the company realized an operating revenue of 52.721 billion yuan, a year-on-year increase of 28.24%, and a net profit attributable to the parent company of 19.515 billion yuan, a year-on-year increase of 29.67%. In 2021, the company's roe was 16.58%, a year-on-year increase of 1.68 PCT.
Ping An View:
Profit growth accelerated and revenue performance was stable. In the whole year of 21 years, the net profit attributable to the parent company increased by 29.7% (vs26.9%, 21q1-3) year-on-year, and the revenue increased by 28.2% (vs28.5%, 21q1-3) year-on-year. We believe that the increase of the company's profit growth is due to the high increase of revenue. At the same time, the release of provision is also an important factor to promote the acceleration of the company's profit.
Loans expanded rapidly and the advantages of deposits were consolidated. In terms of scale, the total assets of the company maintained rapid expansion in 21 years, with a year-on-year increase of 23.9% (vs23.7%, 21q3), and the loan growth rate in 21 years reached 25.5% (vs27.6%, 21q3), faster than the growth rate of total assets. In terms of liabilities, the company's deposits grew by 13.8% (vs13.1%, 21q3) in the past 21 years, with steady growth. In the face of the increasing pressure of the industry, especially small and medium-sized banks, the company, as a benchmark of urban commercial banks, reflects a strong debt side advantage.
The asset quality remained excellent and the provision continued to be consolidated. The non-performing rate of the company at the end of 2021 was 0.77% (vs0.78%, 21q3), a decrease of 2 bp compared with the same period in 2020. The performance of asset quality remained stable and continued to be at the leading level in the industry. At the end of 2021, the provision coverage rate of the company was 522%, increased by 6.7pct month on month compared with the end of the third quarter, and the loan allocation ratio was 4.03%, unchanged month on month compared with the end of the third quarter, with outstanding risk offset ability.
Investment suggestion: Retail transformation, high-quality development, optimistic about the company's high profitability. Bank Of Ningbo Co.Ltd(002142) as the benchmark of urban commercial banks, it has benefited from the strategic concentration brought by diversified ownership structure, market-oriented governance mechanism and stable management team. Its assets and liabilities have expanded steadily and its profitability is ahead of the industry. In 2021, the company's profit growth rate was further improved, and the asset quality remained excellent. At present, the provision coverage level of more than 500% has supported the company's steady operation and performance flexibility. Over the years, the company has deeply cultivated the customer base of small and micro enterprises, steadily increased the scale of small and micro loans, continued to focus on the expansion of large retail business and light capital business, and maintained a high increase in retail loans. Therefore, we continue to be optimistic about the sustainability of the rapid growth of the company's profits. Combined with the company's performance forecast and considering the continuous improvement of asset quality, we raised the company's profit forecast. It is expected that the company's EPS in 2022 / 2023 will be 3.55/4.21 yuan respectively (the original forecast value is 3.72/4.26 yuan), and the corresponding profit growth rate will be 20.0% / 18.6% (the original forecast value is 18.5% / 14.4% respectively). At present Bank Of Ningbo Co.Ltd(002142) corresponds to 1.72 X / 1.48x Pb in 2022 / 2023 respectively. In view of the company's profitability and asset quality leading the industry, it maintains the "strongly recommended" rating.
Risk tips: 1) macroeconomic downturn leads to higher than expected pressure on industry asset quality; 2) The downward interest rate led to a narrower than expected industry interest margin; 3) The escalation of Sino US friction has led to an increase in external risks.
