\u3000\u3000 Ping An Bank Co.Ltd(000001) (000001)
Event: on January 14, Ping An Bank Co.Ltd(000001) released the performance express for 2021, with a revenue of RMB 169.383 billion, yoy + 10.32% (- 1 PCT); Net profit attributable to parent company: 36.336 billion yuan, yoy + 25.6% (+ 23pct); Roe was 10.85% (+ 127bp); The defect rate is 1.02% (- 16bp), and the provision coverage rate is 288.4% (+ 87.02 PCT).
In 2021, Ping An Bank Co.Ltd(000001) revenue increased by 1.2pct month on month, and the net profit attributable to the parent company increased by 25.6% year-on-year, driving the recovery of roe. The growth rate of net profit attributable to parent company in the fourth quarter was revised down month on month, which was mainly affected by the high base of 20q4. The substantial increase in provision also boosted the low profit base and reserved space for subsequent profit release.
In 2021, the non-performing rate decreased by 16bp and the asset quality was further optimized; The recognition of loans is becoming stricter, and it is expected to accelerate the liquidation of non-performing loans. The provision coverage increased by 87.02pct year-on-year, partially benefiting from the pressure drop of non-performing rate, or related to the company's initiative to smooth profit growth.
The scale expansion of Ping An Bank Co.Ltd(000001) in 2021 was generally stable, with the growth of total loans leading the growth of assets by 4.8pct, a slight increase of 10bp year-on-year. The contribution of credit business was improved, the asset structure was optimized and the net interest margin was favorable.
Investment suggestion: the profit has increased significantly, the asset quality has improved, the asset structure has improved, and the net interest margin is good. It is estimated that the EPS of 22 / 23 years will be 2.21 yuan and 2.60 yuan respectively. The closing price on January 17, 2022 corresponds to 1.0 times of 21 year Pb, which is covered for the first time and given a "recommended" rating.
Risk warning: the macroeconomic situation is down; Credit risk outbreak; The transformation progress is less than expected
