Detailed Interpretation of Bank of Ningbo (002142) 2019 Interim Report: Beautiful Performance and Continuous Growth
Investment Highlights Interim Report Highlights: 1. The company’s high profitability and high growth attributes continued, and its performance maintained 20 points of stable and high growth: 1Q19-1H19 revenue, PPOP, and net profit attributable to mothers increased significantly by 23.5% / 19.8%, 25% / 21%, 20% / 20%.2. Net interest income increased by 6 from the previous quarter.1%, driven by both volume and price: the scale of interest-earning assets increased by 3 sequentially.7%, annualized net interest margin of 1 in the second quarter.71%, an increase of 4bp from the previous month; the growth rate of net fees continued to rise, increasing 24% annually.3. Bank of Ningbo’s customer base is solid: loans increased rapidly (+5.8%), this year’s public spending power, consumer credit contracted; deposits maintained steady and high growth, + 19% per year.Insufficient interim reports: bad net generation, a slight increase in overdue QoQ, consistent with industry trends.The company increased its disposal of non-performing products, and the net annual generation of non-performing non-productive products rose by 21bp to 0.5%, the absolute amount is still low overall.Overdue rates, overdue 90-day rates increased by 0, respectively.03%, 0.12%. The company’s high profitability and high growth attributes continue, and its performance has maintained a stable and high growth of 20 points: 1. As the company’s tax-free assets accounted for 25% of interest-earning assets, the profitability of Bank of Ningbo was tracked from the after-tax profit, and the company maintained a stable high growthThe previous growth rate was + 21%, and the growth rate was slightly earlier than the first quarter. 3 units.2. Breaking down the profit 杭州夜生活网 drivers, the revenue growth rate in the first few quarters of the same period last year fell slightly earlier than the first quarter, extending by +19.8%, down slightly from the previous quarter3.7 averages, still maintaining a high growth rate of nearly 20 points overall; PPOP’s base last year was lower than revenue, 1H19 time + 21%, the growth rate exceeded revenue, down 3 from the previous quarter.8 units; provisioning speed increased, PPOP and pre-tax profit growth rate narrowed, pre-tax profit exceeded 32%, down 8 from the previous quarter.4 units.1Q19-1H19 revenue, PPOP, net profit attributable to mother or growth rate were 23 respectively.5% / 19.8%, 25% / 21%, 20% / 20%. 1H19 performance growth and growth expectations: Except, the remaining factors are contributing profit in a positive direction.Taking a closer look 北京夜网 at the changes in the contribution of various factors, the marginal contribution to performance has been improved: 1. The scale growth has continued to expand, and the positive contribution to performance has increased.2. Non-interest income has increased its contribution to performance under the support of further rise in litigation costs.3. Segmentation of negative contribution of performance to performance.The marginal contribution is attenuated: 1, the spread exceeds the narrowing, and the positive contribution is attenuated.2. Marginal transformation of cost contribution to performance.3. The increase in provision and accrual increased the positive contribution to profit. Investment suggestion: Company 2019E, 2020E PB 1.51X / 1.3X; PE 9.97X / 8.3X (City Bank PB 0.91X / 0.81X; PE 7.62X / 6.72X.The Bank of Ningbo Interim Report continues to be beautiful, indicating that the company continues to be on the faster-growing runway.Bank of Ningbo’s asset quality is excellent and has undergone regular inspections. High profit and high growth continue. The company’s market mechanism is flexible and consensus is excellent. It is a scarce and high-quality bank representative. We expect that Bank of Ningbo’s high growth can be sustained and asset quality will remain stable.Core banks that are continuously recommended. Risk warning: The economic growth exceeds expectations, and the company’s operation is worse than expected.