Ping An Bank (000001) 2019 Annual Report Detailed Disassembly: Negative Capital Structure Continues to Adjust Asset Quality

Ping An Bank (000001) 2019 Annual Report Detailed Disassembly: Negative Capital Structure Continues to Adjust Asset Quality

Highlights of the annual report: 1. The company’s revenue in the single quarter exceeded the overall growth rate and remained stable; PPOP’s growth rate was upward, with a single quarter of + 21% per year.

2. Net interest income increased by 4 from the previous quarter.

7%, scale growth is the main driving factor, net interest margin remained flat.

The flattening of the NIM was mainly contributed by the pressure relief on the debt side, and the yield on the bond side of the 苏州桑拿网 asset side declined.

3. Asset quality identification is more stringent, and all overdue for more than 60 days exceed expectations; net write-offs for overdue 90 days or more overdue were faster in 4 quarters and remained stable compared to the same period last year.

4. Debt-side deposits have too many dazzling performances: volume increase and price decrease, and contribution to public deposits.

The fourth quarter was +3 from the previous quarter.

1%, the proportion of interest-bearing denials rose by 0 from the previous month.

2 up to 68.

3%; interest rate dropped 8bp to 2 from the previous quarter.

4%.

5. Costs are well controlled, and management fees have increased for ten years.

6%, 20% growth in the previous three quarters has slowed down.

Insufficient annual reports: 1. The growth rate of net 南京夜网 profit was severely affected by bad expectations: the company intensified its bad discoveries, at the same time intensified write-offs and provisioning. Due to the increase in provisioning efforts, the net profit growth rate in the fourth quarter was at least onlyThere is 5%.

2. New businesses still need to keep track of new loans, car loans, and credit card non-performing ratios rising by 22bp, 1bp, and 31bp to 1, respectively.

34%, 0.

74%, 1.

66%.

3. The core tier one capital adequacy ratio decreased month-on-month due to the development of public credit.

Core Tier 1 capital adequacy ratios fell 64bp to 9 from the previous quarter.

11%.

The company’s single-quarter growth rate of the company’s revenue has remained stable overall; PPOP’s growth rate has been upward, with a single quarter growth of + 21%; net profit has been seriously affected by adverse expectations, and the growth rate has fallen.

Single quarter revenue in the first quarter to the fourth quarter of 19, PPOP, net profit attributable to mothers increased by 15 respectively.

9% / 21% / 19.

4% / 16.

5%; 17.

3% / 20.

7% / 19.

2% / 21%; 12.

9% / 17.

4% / 16% / 4.

9%.

Investment suggestion: The 4th quarter report is in line with our expectations, consolidating the profit growth rate of the low asset quality, and the 4th quarter revenue growth rate is subject to the pressure of the overall industry, and the company has realized a price premium.

Company 2019, 2020E PB1.

04X / 0.

95X; PE 10.

41X / 9.

13X (Share Bank PB 0.79X / 0.

71X; PE6.

6X / 5.

93X). The company is backed by the Group’s technology and comprehensive finance, and has obvious advantages in corporate and retail business expansion. In the medium and long term, it is expected to transform into a high-quality bank.

The company has over 60 days overdue for all bad replacements. Historically, it has basically replaced the public inventory burden. Investors are advised to actively pay attention to its conversion speed, which is our recommended “core asset” in the banking industry.

Risk reminder: The macro economy is facing downward pressure, and performance management is less than expected.