Ping An Bank (000001) quarterly report comment: rebound in interest rates, asset quality continues to improve, net profit growth accelerates

Ping An Bank (000001) quarterly report comment: rebound in interest rates, asset quality continues to improve, net profit growth accelerates

Ping An Bank released a quarterly report, achieving a net profit of 74 billion yuan in the first quarter of 2019, an increase of 12 year-on-year.

9%, higher than the same period last year 7.

0% growth level.

The company’s retail business continued to expand, and AUM and personal deposits achieved rapid growth.

  In terms of asset quality, further improvements were made.

We are optimistic about the company’s 天津夜网 efforts in retail business, fintech, and customer volume driven by Ping An Group.

The overall assessment of the company is not high. To sum up, we maintain the “buy” investment recommendation.

  Net profit for the first quarter of 2019 increased by 12.

9%: Ping An Bank released a quarterly report. In the first quarter of 2019, it realized revenue of 325 billion yuan, an increase of 15 year-on-year.

9%, realized a net profit of 7.4 billion, an increase of 12 year-on-year.

9%, higher than the same period last year 7.

0% growth level.

Annualized ROE12 in the first quarter of 2019.

2%, an increase of 0 compared with the same period last year.

3 points.

  Under the background of rising interest rates, net interest income has grown rapidly, and non-interest income has also performed well: from the perspective of income, the interest rate has been extended and increased (annualized net interest margin YOY has increased by 0.

28 points to 2.

53%), ^ net income YOY increased by 11.

2% to 20.8 billion.

The interest margin has been improving, and it is expected that the loan yield will increase by 0 in the first quarter of 2019.

6 points to 6.

6%, reducing the proportion of deposits in the debt-side budget and increasing the cost ratio of other debts (such as bonds, banks).

In terms of non-interest income, YOY increased by 25.

3% to 11.7 billion, mainly due to a substantial increase in investment income, recorded 2.6 billion in the first quarter of 2019 (4 billion in the same period last year), and other fees and commission income YOY increased by 11.

2% to 9.6 billion.

  AUM grows rapidly, and personal deposits make up quickly: The company’s retail business is rapidly advancing, ending 1Q2019AUM1.

67 trillion, an increase of 17 before the fourth quarter of 2018.

4%.

Personal deposits made up quickly, increasing by 13 in the fourth quarter of 2018.

0% to 521.6 billion.

Retail customers were 8701 trillion, up 3 by the fourth quarter of 2018.

7%, 67.65 million registered customers of Pocket Banking App, up 8. by the fourth quarter of 2018
.

7%.

The company has 26.03 million monthly active customers, an increase from the fourth quarter of 2018.

  Asset quality continued to improve, and provisions were increased: from the perspective of asset quality, the first quarter of 2019 had an unfavorable growth1.

73%, a decrease of 0 from the fourth quarter of 2018.

02pct, improved.
The growth rate of non-performing loans declined, recording 96% in the first quarter of 2019, before the fourth quarter of 2018.
The company increased the provision and provision, and the provision and loan increased by 0 compared with 4Q 2018.

23pct to 2.

94%, and in the context of improved asset quality, the provision coverage ratio increased by 16pct to 171% compared to the fourth quarter of 2018.

  Profit forecast and investment recommendations: We expect the company to achieve net profit of 267.3 billion 30.4 billion in 2019 and 2020, an increase of 11 year-on-year.

3%, 10.

2% is currently the corresponding PE9 corresponding to the stock.

1X, 8.

2X, PB0.

99X, 0.

89X, estimated budget.

The strength of the company’s retail business and asset quality have been recognized by the market, and it is continuously developing its technology. We are optimistic about the company’s future development and give “buy” investment advice.

  Risk Warning: Macroeconomic Downward Expectation