Bank of Ningbo (002142): Outstanding performance of deposit growth and growth of stable asset quality and excellent
Event: The first quarter report of 19 was released. The revenue, PPOP and profit growth steadily increased to 23.
06%, bad rate (0.
78%), provision coverage (520.
(6%), which is flat month-on-month, and asset quality remains stable and excellent.
In addition, its Q1 deposits increased by as much as 16.
7%, bright performance.
The performance growth was dazzling and the profitability was steadily enhanced.
1) Accelerated performance growth.
19Q1 revenue, PPOP, and attributable profit growth have increased significantly by 8 in Q4 earlier than in 18 years ago.
96 tablets to 23.
2) Net interest margin and net interest margin have steadily increased.
19Q1 net interest margin is 1.
75%, after excluding the impact of the new standard switch, the net interest margin under the same caliber, the net interest margin level is 1.
26%, a steady increase of 1bp and 6bps over the previous 18 years.
Rising interest rate spreads have driven growth in net interest rate income (17.
99%) The previous 18 years have steadily improved by 1.
3) Central income continued to pick up.
Q1 program fee and commission net income growth rate reached 17.
40%, a significant increase of 16.
01 pc, it is expected that advantageous businesses such as bank cards and international business will continue to grow rapidly.
4) ROA continues to improve.
Up to 0.
12 pieces to 1.
19%, core profitability has steadily increased.
Asset-side: Loans grew steadily, and retail loans declined amid the worsening of ABS.
Total assets in the first quarter increased by 3.
99%, of which net loans increased by 4.
Among the newly issued 15.4 billion loans, public loans increased by about 17 billion, and bills increased by about 4.5 billion; retail loans decreased by about 60 billion; it is estimated that the main reason is the fluctuation of the speed of ABS’s billing, and the actual investment rhythm may remain stable.
Debt side: Deposits increase and grow, and appropriately reduce interbank debt + interbank certificates of deposit.
The balance of deposits in 19Q1 reached 754.8 billion yuan, a significant increase over the end of 18% 16.
7%; of which, personal deposits increased by approximately 31.2 billion (+25.
5%), the company’s deposits increased by about 69 billion (+13.
Considering the initial size of deposits of non-bank institutions, the deposit scale was 816.1 billion, an increase of 665 earlier.
600 million, a growth rate of about 9%.
In addition, under the environment of slightly rising interest rates at the end of March, inter-bank debts and inter-bank certificates of deposit (under the wind caliber) decreased by 27 billion, 46.6 billion, respectively, and the proportion of inter-bank certificates of deposit + inter-bank liabilities decreased by 7.
8 to 16 pieces.
9% (also partly due to a significant increase in the proportion of deposits 7.
8pc to 70.
Asset quality continues to be outstanding.
19Q1 bad rate (0.
78%), provision coverage (520.
(6%) were flat month-on-month.
The proportion of attention-oriented loans increased slightly by 9bps to 0.
64%, but still in an acceptable position.
On the whole, asset quality continued to remain solid and outstanding.
Investment suggestion: The company’s fundamentals are better among listed city commercial banks, the comprehensive management capability has changed, and the asset quality has always been stable and excellent. We are optimistic about the long-term investment value and give it a certain estimated premium.
It is estimated that the net profit attributable to the mother in 192/21/21 will be 134.
15 billion, BVPS is 14.
60 yuan, maintain “Buy” rating.
Risk reminders: Macroeconomic growth is accelerating, monetary policy is shifting, and the progress of Sino-US trade negotiations is less than expected.