Bank of Beijing (601169) 2019 Interim Report Review: Stable Operation Increases Retail Contribution

Bank of Beijing (601169) 2019 Interim Report Review: Stable Operation Increases Retail Contribution

The Bank of Beijing operates stably, and the advancement of the “one body and two wings” transformation of the retail business constitutes new support for the company’s gradual development.

Maintain the company’s “overweight” rating.

Matters: Bank of Beijing released its 2019 Interim Report. The operating income and net profit attributable to mothers increased year by year in the first half of the year.

6% and 8.

6%; Defective rate decreased by 0 compared with the initial stage.

01pct to 1.

45%.

Profits are generally stable, and revenue performance continues.

The company’s net profit attributable to its mother in the first half of the year is +8 per year.

6% (Q1 quarter +9.

5%), the slight decline in the second quarter was mainly due to the provision of provisions is still high.

On the income side, dragged down by weaker mid-quarter revenue, revenue growth was up 23 from the first quarter.

8% dropped to 19.

6%, still at a high level; the cost side, effective cost control, cost and income fell 3 years ago.

4 pieces to 18.

3%; at the risk side, under the strict confirmation of asset quality, the asset impairment loss in the first half of the year is at least +52.

4%, provision coverage ratio fell slightly from the initial 5pcs to 213%.

Improved asset structure helped the performance of interest spreads in the second quarter.

The semi-annual report revealed that the company’s net interest margin in the first half of the year was 1.

93%.

According to the company’s performance conference, 1Q19 / 2Q19 were 1.

86% / 1.

95%, the interest rate rose steadily in the second quarter thanks to the optimization of the asset-liability structure: (1) On the asset side, the second quarter continued to increase the issuance of high-yield credit assets, and the loan balance increased by 0.

6 points to 49.

5% (an increase of 32.8 billion in the quarter), which reduced the revenue of interbank assets of 11.6 billion; (2) On the debt side, deposits continued to grow better in the second quarter (+36.5 billion). Storage coupled with fluctuations in the interbank market,Reduced inter-industry debt by 22.1 billion (including inter-bank deposit certificates).

The margin of the middle income has weakened, and the standard switch has raised non-interest income.

(1) Net income from program fees and commissions: Weak margins (+4 per year in the first quarter and the first half of the year, respectively.

5% /-5.

5%), in the first half of the year compared with the same period last year decreased by 2.

1 billion, is expected to be mainly due to the shrinkage of wealth management income during the transition period of capital management business (capital-protected, non-capital-protected wealth management fee income reduced by a total of 2).

1.3 billion); (2) Other non-interest income: Affected by the increase in investment income brought by the conversion of accounting standards, the long-term significant increase of 30.

6 billion.

Negative identifications became stricter and accruals for non-credit impairments accelerated.

In the first half of the year, the company’s non-performing ratio dropped by zero.

01pct to 1.

45%, the degree of bad deviation is also 92.

3% dropped to 78.

8%, the identification of bad stocks is still tightening.However, from the perspective of broad asset quality indicators, the first half of the year 南宁桑拿 focused on the + NPL ratio, and the overdue loan ratio was +0.

11pct / + 0.

04pct, additional risks will be further observed.

In addition, the company’s asset impairment provision in the first half of the year was 10.4 billion (previously +52.

4%) is still at a historical high level, especially the impairment of other assets was accrued to US $ 4.4 billion, indicating that the company intends to further increase the on-balance sheet and off-balance sheet risk resistance.

The initial preliminary results of retail sales showed a positive development, and the personal deposit and loan business developed well.

(1) Assets: Retail loans increased by 10 in the first half of the year.

4%, higher than the bank’s loan growth rate2.

5pcts, the inventory accounted for 30% of the first overtaking; (2) debt end: the increase 杭州夜网 of 15% in storage and storage.

7%, which is 5pcs higher than the deposit growth rate of the whole bank; (3) Risk end: The non-performing ratio of retail loans decreased by 0 from the beginning.

03pct to 0.

36%.

In addition, the development of retail business is also promoting a virtuous cycle of internal growth of capital, and the company’s risk reduction factor in the first half of the year decreased by one.

With 32 cases, the Tier 3 capital adequacy ratios increased by 0 compared with the beginning of the year.

30pct / 0.

43pct / 0.

44 points.

Risk factors: stalling macroeconomic growth; worse-than-expected retail loan quality deterioration.

Investment suggestion: Bank of Beijing operates stably, and the promotion of the “one body and two wings” transformation of the retail business constitutes new support for the company’s gradual development.

Maintain the company’s 2019/20 EPS forecast (attributable to ordinary shareholders) as 1.

00/1.

10 yuan, the current A shares are expected to correspond to May 2019.

22X PE / 0.

58X PB, maintaining the company’s “overweight” rating.

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