\u3000\u3000 Bank Of Jiangsu Co.Ltd(600919) (600919)
Event: on January 11, Bank Of Jiangsu Co.Ltd(600919) released the performance express for 2021, realizing a revenue of 63.8 billion, yoy + 22.6% (+ 6.9pct); Net profit attributable to parent company: 19.7 billion, yoy + 30.7% (+ 27.66pct); Roe was 12.60% (+ 69bp); The defect rate was 1.08% (- 24bp); The provision coverage rate is 307.72% (+ 51.32pct).
In the past 21 years, the revenue and profit increased significantly, reaching a new high since 2012, driving roe to rise by 69bp. The growth rate of performance far exceeds the growth rate of asset scale, or benefits from the improvement of the contribution of non interest business.
The non-performing rate and non-performing loans decreased, the stock credit risk was cleared faster, and the asset quality was improved. Benefiting from this, the provision coverage has been significantly improved and the asset safety margin has been thickened.
The loan balance increased by 16.52% year-on-year, leading the speed of asset expansion and at the upstream level of the industry, highlighting the strong financing demand in the region. The credit supply is expected to remain strong and guide the stable return of net interest margin.
Investment suggestion: the performance will maintain high growth, the asset quality will be further consolidated, and the regional advantages will lay the space and capacity for credit supply, which is expected to drive the net interest margin to stabilize. It is estimated that the EPS of 22 / 23 years will be 1.56 yuan and 1.89 yuan respectively, and the closing price on January 17, 2022 will correspond to 0.7 times of 21 year Pb. It will be covered for the first time and given a “recommended” rating.
Risk warning: macroeconomic stall; Sharp decline in asset quality; Regional credit risk.
