Ping An Bank (000001): Steady improvement in profitability and continuous breakthroughs in retail business

Ping An Bank (000001): Steady improvement in profitability and continuous breakthroughs in retail business

Report summary: Event: On August 7, Ping An Bank announced 1H19 financial report: Net profit of 154.

30,000 yuan, an increase of 15 year-on-year.

2%; revenue 678.

290,000 yuan, +18.

5%, ROE12.

63%, ten years + 27BP.

At the end of June 19, total assets were 3.

59 trillion, non-performing rate 1.

68%, provision coverage ratio of 182.

53%, core tier 1 capital adequacy ratio8.

89%.

Opinion: The income side continues to improve, and the interest margin rises at a high level.

Total assets at the end of June 3.

59 trillion, an increase of 5 from the beginning of the year.

0%, loans increased by 4 over the beginning of the year.

2%, the scale grew steadily.

The highest growth rate of 1H19 revenue / PPOP was 18 respectively.

5% / 19.

0%, compared with 1Q19 of 17.
.

1% / 15.

9% went further up.

The income side continued to improve, mainly benefiting from reasonable growth in scale and high interest rate spreads.

1H19 net interest margin 2.

62%, an increase of 9BP month-on-month, contributed by the rise in loan yields and the decline in deposit costs.

1H19 loan yield 6.

67%, 6BP higher than in 1Q19; the cost ratio of deposits was 2.

49%, a decrease of 3BP from 19 in the previous quarter.

Asset quality continued to improve, and retail non-performing rate was stable.

At the end of June, the NPL ratio was 1.

68%, a drop of 5BP from the previous month; pay attention to the loan ratio of 2.

48%, a decrease of 25BP from the beginning of the year; overdue loan rate 杭州桑拿 2.

50%, an early decrease of 10BP, under strict bad recognition, asset quality continued to improve.

Provision coverage ratio was 182.

5%, the loan-to-loan ratio is 3.

06%.

Driven by the retail transformation strategy, the risk control of the retail business continued to be prudent and the non-performing rate remained stable.

At the end of June, the credit card / new loan / auto financing ratios were 1 respectively.
37% / 1.
13% / 0.

62% (end of the first quarter, respectively 1.

34% / 1.

14% / 0.

62%).

The retail business made further breakthroughs and the private banking business expanded rapidly.

The retail transformation strategy has been progressing steadily for more than two years, the retail business has achieved remarkable results, and the results have been further consolidated.

1H19 retail 西安耍耍网 business net profit contribution accounted for 70%, retail loans accounted for 60%, retail AUM1.

76 trillion, 1 for the end of 16 years.

2 times.

Among them, the private banking business has expanded rapidly in 19 years.

At the end of June, the private bank met the customers3.

840,000 households, an increase of 27 from the end of the previous year.

9%, private customer AUMDA6122 trillion, an early increase of 34%, the future growth space is still large.

Investment suggestion: Continue to be optimistic about the space for retail transformation and further enhance the ability to release performance. While retail transformation and development are gradually consolidating, the company continues to focus on basic retail, private banking and wealth management, and consumer finance, while maintaining prudent risk control.

The company is expected to maintain a high level of interest margins among its peers and stable asset quality. It is expected that the net profit growth rate in 19/20 will be 15%.

0% / 16.

4%, continue to be optimistic about the huge space for retail transformation and give the company 1.

2x 19-year PB target estimate, corresponding to 17.
.

2 yuan / share.

Risk warning: the decline of economic stall will lead to deterioration of asset quality; external changes in regulatory policies are expected.