Everbright Bank (601818) semi-annual report comment: How good is the interim report performance?

Where’s the good

Everbright Bank (601818) semi-annual report comment: How good is the interim report performance?

Where’s the good

Event: On August 28, China Everbright Bank disclosed 佛山桑拿网 its 19-year interim report.

Revenue 661.

40,000 yuan, +26 year-on-year.

6%; profit before provision is 480.

7 billion, +31.

9%; net profit attributable to mother 204.

4 billion, a year-on-year increase of +13.

1%; ROE reached 12.

90% (annualized), ten years + 54BP; NPL ratio 1.

57%, earlier -2BP, provision coverage rate of 178%.

Opinion: How good is this interim report?

Where’s the good
Revenue growth is at an all-time high.

1H19 revenue was 661.

4 billion, a year-on-year increase of +26.

6%, a new high since 1H13 (the previous high was 32 in 1H12.

9%).

Tips and mid-receiving two-wheel drive.

Net interest income + other non-interest income 533.

9 billion, a year-on-year increase of +27.

9%; middle income 127.

5 billion, a year-on-year increase of +21.

7%, mainly bank card handling fee +15.

4 billion.

Net profit attributable to mother 204.

4 billion, a year-on-year increase of +13.

1%, the main supporting factor is the expansion of net interest margin.

13 in 13 years.

After 24%, China Everbright gradually returns to the growth rate of the mother net profit in each quarter gradually lower than 10% year-on-year, and even continued to fall below 5% in 15-17, this is the first time that 6 returns to more than 10%.

Impact of caliber adjustment.

Credit card installments are adjusted from handling fees to interest income. When the average loan balance is unchanged, the yield on credit card loans will be increased.

The 1H18 loan yield is therefore +183 BP, loan yield + 74BP, net interest margin + 41BP, net interest margin + 17BP, which gradually increases the center of the net interest margin, which leads to approaching retail benchmarking / Ping An.

Net interest margins should be improved.

Except for China Merchants Bank / Ping An’s four reported interim share banks, the average 1H19 net interest margin was 2.

04%, and Everbright is 2.

28%, which is higher than its 24BP. If 17BP is deducted, its comparative advantage does expand, but it is not particularly large. ROE is significantly improved.

In 1H19, the ROE reached 12.

90%, comparable caliber + 54BP for the next ten years, ranking the first among 7 listed interim report banks.

In fact, the ROE of most listed banks in 1H19 declined for one year.

Everbright has risen against the trend, so there is an estimated potential for improvement.

The security of loans and investments has been improved, and overall asset quality has remained stable. Asset-side structural adjustments have reduced risk.

19H1 final loan 2.

59 trillion yuan, +1716 billion yuan from the beginning of the year, investment 1.

33 trillion yuan, +24.5 billion yuan from the beginning of the year, clearly tilting towards loans.

Loans are mainly based on corporate loans (+92 billion), which proves that their loan demand is sound.

The proportion of unhealthy high-income industries continued to drop, and risks were mitigated.

The investment structure was adjusted by adding 126 billion corporate bonds and 63.3 billion government bonds. Non-standard funds and funds have reduced 130.9 billion in total. At the end of 19, the pressure on non-credit five-tier classification was less.

The overall asset quality remains stable.

The NPL ratio decreased by 2BP to 1 compared with the beginning of the year.

57%, overdue rate and overdue 90+ ratio are up 24BP / 6BP over the morning, indicating that a new overdue interruption occurred in the second quarter, and temporary debts are easier to recover, and the problem is not serious.

Wealth management subsidiary was approved for establishment, moving towards the goal of “First-class Wealth Management Bank” April 19th, the wealth management subsidiary was approved for establishment.

At the end of 19H1, the balance of off-balance sheet financial management was 702.3 billion yuan, which was renewed in the first half of the year.

70 trillion.

The “Colorful Sunshine” series of net worth products has become quite famous, or it will become a weapon for expanding new regulatory business.

1H19 wealth management fee 2.

6.6 billion, -47% year-on-year, compared with 17-18, the decline has narrowed significantly.

After the transitional pain period, wealth management is expected to usher in a strong recovery after opening.

Investment suggestion: Net interest margin and ROE are significantly improved, performance growth hits a record high of 6 and the performance rebounded strongly; the Group is deepening synergy to effectively promote the strategy of wealth management banks.

It is expected that the growth rate of net profit attributable to mothers in 19-21 will be 8.

5% / 9.

3% / 10.

1%, the corresponding EPS is 0.

70/0.

76/0.

84 yuan, the target assessment will be doubled for 19 years of PB, and the target price is 6.

14 yuan, maintain BUY rating.

Risk reminder: The advancement of interest rate marketization will continue to narrow the interest margin; policy tightening will exacerbate the “asset shortage”.