China Everbright Bank (601818): Strong deposit growth

1H19 performance was in line with our expectations. Everbright Bank’s 1H19 revenue was US $ 66.2 billion, an annual increase of 26.

6%; net profit of 204 million US dollars, an annual increase of 13.


Net profit in the second quarter of 2009 was 107 million U.S. dollars, an increase of 18 year-on-year.

7%, in line with our expectations.

Development Trend 2Q19 companies recorded 2,598.9 billion deposits, an increase of 2 quarter-on-quarter.

4%, an increase of 15 earlier.

0%, continuing the strong growth momentum of the first quarter.

Among them, corporate deposits / retail deposits increased 14 earlier.

7% / 19.


The deposit ratio at the end of the period was 68.

6%, up 486 / 73bps from the beginning of the year / 1Q19.

Access to deposits has reduced liquidity pressure and the loan-to-deposit ratio at the end of the period.

6%, down 6 from the beginning of the year / 1Q19.



2Q recorded a net interest margin of 2 at the beginning and end of the period.

25%, an increase of 1bps from the previous quarter, mainly due to the decline in denial costs.

2Q net program fee income grows by 18 per year.

2%, 北京桑拿洗浴保健 continuing the momentum of 1Q, mainly from bank card, settlement and clearing and agency business.

A negative rate of 1 was recorded at the end of the period.

57%, a decrease of 2bps month-on-month, and a negative balance increase of 1 month-on-month.


After adding back write-off annealing, 2Q net bad generation rate is 1.

75%, MoM / temporary change + 6 / -1bps, generally stable.

Attention category accounts for 2.

30%, a decrease of 11bps compared with the end of last year, and the surplus of attention category has increased compared with the end of last year.

Overdue category accounted for 2.

59%, an increase of 23bps from the end of last year.

Provision coverage rate was 178.

0%, which was roughly flat month-on-month.

Earnings forecasts and estimates Taking into account the strong growth in 青岛夜网 corporate deposits, we raise our net profit for 2019/2020 by 6% / 9.

4% to 375 trillion / 408 trillion.

The current A-share contradiction corresponds to 0 in 2019/2020.

61 times / 0.

56 times price-to-book ratio.

The current H share corresponds to 0 in 2019/2020.47 times / 0.

43 times price-to-book ratio.

The stock maintains a neutral rating and 4.

Target price of 49 yuan, corresponding to 0.

75 times 2019 P / B ratio and 0.

68 times P / B ratio in 2020, 21 compared to previous inclusion.

7% upside.

H shares maintain neutral rating and 4.

03 Create target price, corresponding to 0.

59 times 2019 P / B ratio and 0.

54 times 2020’s P / B ratio, 26 more recently included.

3% upside.

Risk asset quality is less than expected