Ping An Bank (000001) Comment Report: Net interest margin continues to rise in the second quarter

Event: Ping An Bank’s 2019 interim results announced on August 8, 2019. Investment highlights: Pre-provision profit increased by 19%, increasing risk asset returns by 6.

9%: The operating income in the first half of 2019 will increase by 18 per year.

5%, 19% increase in profit before provision, and 15% increase in net profit attributable to mothers.

2%.

The balance of deposits increased by 10 from the beginning of the year.

08%, loan budget increased by 4 compared with the beginning of the year.

22%, with an expected increase in risk assets of 6 per year.

9%.

The second quarter of 2019 increased by 17BP compared to the first quarter: Consistently, the cost of debt-side interbanks and bond issuance has fallen sharply, while the asset-side loan interest rate has risen slightly.

The average cost of interest on deposits decreased by zero compared to the end of 2018.

36 averages, the average loan return increased by 1 compared with the end of 2018.

56 averages.

The main contribution of the new loans came from the retail business: from the perspective of the structure of the new credit, new loans to corporate and retail loans accounted for 16% and 84%.

The increase in corporate loans was mainly contributed by the real estate and discount business; the increase in retail loans was mainly concentrated in housing mortgage loans.

On the debt side, the proportion of demand deposits declined slightly, accounting for 37%, and personal deposits grew by more than 35%, and the growth rate increased.

The growth rate of net program fee income has remained basically stable. From the point of view of itemized growth, settlement and agency fee income have gradually realized rapid growth. The growth rate of credit card business has slightly changed, while wealth management income is still changing.narrow.

The personal loan non-performing ratio increased by 2BP: benefiting from the loose policy environment in the first half of the year, the corporate loan non-performing ratio decreased.重庆耍耍网

However, the non-performing rate of personal loans rose slightly, including personal consumer loans, credit cards, and internal business non-performing rates.

Profit forecast and investment advice: Under the general idea of light capital development, retail finance continues to expand and asset quality fluctuates slightly.

Benefiting from the decline in disadvantaged costs, the net interest margin continued to rise in the second quarter. The company currently overcomes the corresponding 2019-2020 PB estimate of 0.

95 times, 0.

85 times, maintaining the “overweight” level.

Risk factors: The economic recession is better than expected; the market decline presents systemic risks.