Industrial Bank (601166) 2019 Third Quarterly Report Review: Asset Performance Better than Interim Report

Industrial Bank disclosed in the third quarter of 2019 that Industrial Bank achieved net profit attributable to its mother of US $ 54.9 billion in the first three quarters of 2018, an increase of 8 per year.


The decline in equity multiplier affects ROE. ROA is basically stable. The average ROE is expected to decrease by 0 in the first three quarters.

3 averages, but ROA rose slightly beyond 0.

03 levels, basically stable.

From DuPont’s analysis, there are two major factors that have changed significantly: first, the net interest rate / average asset has increased significantly, and second, the 无锡桑拿网 asset impairment loss / average asset has increased significantly.

This performance is consistent with the Interim Report.

The net interest margin improved significantly in the short term, and the net interest margin (returning FVPL investment income to interest income) calculated from the average balance at the beginning of the use period was slightly lower than 1.

87%, previously expected to increase by 26bps, mainly due to the improvement in interbank financing costs, related to the decline in money market interest rates and its special debt structure.

On a month-on-month basis, the net interest margin in the single quarter decreased slightly, but the decrease was not significant.

In the third quarter, the net interest margin was 1.

87%, a slight decrease of 3bps from the previous quarter.

The performance 天津夜网 of asset quality was better than that of the third quarter of the interim report. The NPL ratio decreased by 1bp to 1 from the end of the first quarter.

55%, the attention rate fell 3bps to 1 from the previous quarter.

85%, the remaining indicators perform better.

The provision coverage ratio at the end of the third quarter was 198%, an increase of 4 percentage points from the end of the second quarter, and the asset impairment loss in the third quarter increased by 15.

6%, compared with 25 in the first half.

3% obviously fell, combined with changes in the provision coverage rate and the increase in asset impairment losses, it is estimated that its non-performing generation rate improved (once in the first half of the year).

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

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