\u3000\u3000 Bank Of Ningbo Co.Ltd(002142) (002142)
Key investment points
Performance overview
Bank Of Ningbo Co.Ltd(002142) in 2021, the net profit attributable to the parent company increased by 29.7% year-on-year, and the growth rate increased by 2.7pc month on month; Operating revenue increased by 28.2% year-on-year, with a growth rate slightly lower than that of 0.2pc. ROE16. 6%, a year-on-year increase of 1.7pc; The defective rate was 0.77%, with a month on month ratio of – 1bp; The provision coverage rate was 522%, with a chain comparison of + 7pc.
High growth highlights
Bank Of Ningbo Co.Ltd(002142) the growth rate of net profit in 2021a increased by 2.7pc to 29.7% month on month, and the growth rate of revenue basically stabilized at 28.2%, exceeding market expectations. The performance has increased rapidly for many consecutive years. The two-year compound performance growth rate from 2019 to 2021 is also the first among the banks with disclosed performance letters. The two-year compound net profit and revenue growth rates are 19.3% and 22.6% respectively. Looking forward to the future, the asset quality will be solid, the strength of wealth management will be superimposed, and the profit is expected to remain excellent.
The scale continues to increase
At the end of Bank Of Ningbo Co.Ltd(002142) 21, the asset scale increased by 23.9% and the loan increased by 25.5% year-on-year, and the growth rate remained high. It is expected that the investment of assets will continue to be strong in 2022, thanks to the completion of replenishment of ammunition by the end of 2021. According to the static calculation of the data at the end of 21q3, the core tier 1 capital adequacy ratio can be increased by 95bp to 10.34%.
Better asset quality
The Bank Of Ningbo Co.Ltd(002142) non-performing rate at the end of 2021 was – 1bp to 0.77% month on month, ranking in the forefront of listed banks; The provision was thickened, and the provision coverage increased 7pc to 522% month on month at a high level. Looking forward to the future, excellent asset quality and sufficient provisions lay a solid foundation for the sustainable growth of Bank Of Ningbo Co.Ltd(002142) performance.
Profit forecast and valuation
Bank Of Ningbo Co.Ltd(002142) performance exceeded expectations and high growth was highlighted. It is estimated that the net profit attributable to the parent company in Bank Of Ningbo Co.Ltd(002142) from 2022 to 2023 will increase by 20.7% / 21.8% year-on-year, corresponding to bps21 51 / 25.08 yuan. Maintain the target price of 49.32 yuan, corresponding to 2.29 times Pb in 2022. The current price corresponds to PB1 in 2022 69 times, current price space 36%, buy rating.
Risk tip: macroeconomic stall and sharp outbreak of adverse.
