Ping An Bank (000001) 1H19 Interim Report Detailed Dismantling: Performance Growth Is Better Than Expected

Ping An Bank (000001) 1H19 Interim Report Detailed Dismantling: Performance Growth Is Better Than Expected

Investment Highlights Interim Report Highlights: 1. The performance growth was better than expected, and the growth rate continued to increase. Revenue continued to maintain double-digit growth for three consecutive quarters, an increase of +18.

5%.

2. Net interest income increased 10% MoM, mainly driven by net interest margin, which was + 18bp to 2 MoM.

71%, the daily average interest-generating asset scale is +0 from the previous month.

76%.

The widening of the net interest margin is jointly contributed by the assets, the asset side is driven by the significant increase in personal loan income, and the debt side is the interest payment cost loop which has dropped significantly.

3. The overall asset quality is stable. On the basis of strict non-recognition, it is possible to keep track of the net non-performing generation rate that excludes the impact of collection. We calculated that the non-performing net generation 2 in the second quarter will be added back.

81%, down from the previous month.

4%.

4. Debt-side deposits have too many dazzling performances: volume increase and price decrease, and contribution to public deposits.

On the basis of high cardinality, a ring ratio of 2 is still achieved.

The high growth rate of 4 points, the proportion of interest-bearing denials increased by 1 from the previous quarter.

1 up to 68.

86%; interest rate fell 6bp to 2 from the previous quarter.

46%.

5. Under the light asset model, the core tier 1 capital adequacy ratio increased by 14bp to 8 from the previous quarter.

89%.

Insufficient interim reports: 1. The new business still needs to be tracked, and the NPL of Qinyi loan decreased by 1bp to 1 in the second quarter.

13%, an increase of 36bp over the same period last year; the non-performing rate of credit cards rose 3bp to 1 from the previous quarter.

37%.

2. The program fee growth rate is forecasted to increase by 2 every year.

5% (VS 1Q19 ten years 11).

2%), it is expected that part of the instalment income will continue to be partially converted to interest income, and the continuous growth rate of bank card fees will drop sharply to 8% (VS 2018 growth 37%).

  The growth rate of performance has continued to increase since 18 years, and revenue has maintained double-digit 武汉夜网论坛 growth for three consecutive quarters.

Ping An Bank’s revenue, pre-provision profit, and net profit for the 1Q18-1Q19 cumulative 10-year growth rates were 1 respectively.

1% / 5.

9% / 8.

6% / 10.

3% / 15.

9% / 18.

5%, -6.

9% /-1.

twenty four.

2% / 9.

6% / 17.

3% / 19%, 6.

1% / 6.

5% / 6.8% / 7.

0% / 12.

9% / 15.

2%.

  Investment suggestion: The company 2019E, 2020E PB 0.

95X / 0.

85X; PE 8.

43X / 7.

68X (Share Bank PB 0.

78X / 0.

70 times; PE 6.

45X / 6.

00X), the company’s second-quarter performance growth continued; asset quality is generally stable, and the burden of bad stocks has gradually shifted. The bad trend of new business is on the rise, and the range is relatively stable. It is important to observe in the future.

The results of Ping An Bank in the second quarter were 武汉夜生活网 generally better than expected, and investors are advised to pay close attention to it.

  Risk reminder: The macro economy is facing downward pressure, and performance management is less than expected.