Bank of Beijing (601169) 2019 Third Quarterly Report Review: Provision coverage ratio picks up

Bank of Beijing (601169) 2019 Third Quarterly Report Review: Provision coverage ratio picks up

Bank of Beijing disclosed its third quarter report for 2019. Bank of Beijing achieved net profit of 18.1 billion US dollars in the first three quarters of 2019, a further increase of 8%.

8%.

Profitability stabilized in the first three quarters of 2019. The average ROE is expected to decrease by 0 year-on-year.

1 average, where ROA0.

92%, an increase of 0 over the same period last year.

01 averages.

From DuPont’s analysis, there are two changes, but the directions are opposite and they are basically transformed: one is that the net interest margin has improved, and the other is that the asset impairment loss / average asset 深圳spa会所 has increased.

The repricing of interbank financing has ended. The net interest margin (reverting FVPL investment income to interest income) calculated from the average balance at the beginning and end of the first three quarters of use has increased by 24bps to 2.

08%, mainly due to the improvement in debt costs, that is, benefit from the decline in interbank financing rates.

However, in the third quarter, the net interest margin in the third quarter increased by only 4bps compared with the second quarter, with little change. Among them, the interest rate on interest-bearing debts remained flat, which meant that the repricing of interbank financing had ended.

Provisions increased, and provision coverage ratio rebounded. From the perspective of NPL indicators: NPL ratio at the end of the third quarter 1.
.

41%, a decrease of 4bps month-on-month; provision coverage ratio at the end of the third quarter rose by 16% to 229%, and asset impairment losses increased by 39%, affecting ROA, mainly due to the company’s active increase in provisioning in the case of a significant increase in PPOPIncreased strength leads.

In terms of asset growth, the balance sheet dropped slightly. In the first three quarters, total assets increased.

8%, slightly down.

In the third quarter, the supplementary interest-generating assets in the third quarter were 106 million U.S. dollars, of which the loan increased by 39.1 billion U.S. dollars, which was much higher than the same period of the previous year;The US dollar shows that deposit pressure remains.

Investment recommendation The overall performance of the company is basically in line with expectations, and we maintain the company’s “overweight” rating.

Risks suggest that 深圳桑拿网 the continued weakening of macroeconomic expectations may adversely affect the quality of bank assets.