Wuxi Bank (600908): Single-quarter revenue and net profit significantly improved
Event On January 13, Wuxi Bank released a report on 2019 results, in which operating income increased for ten years.
62%, net profit attributable to mothers increases by 13.
Brief Comment 1. The fourth quarter performance growth rate was significantly higher than the previous quarter, which is higher than the expected operating income in 2019 of 35.
63 ppm, an increase of 10 years.
62%; net profit attributable to mother 12.
45 ppm, an increase of 13 in ten years.
From a single quarter point of view, 4Q revenue grows 24 per year.
39%, an increase of 11 from the previous quarter.
91 averages; 4Q net profit increased by 22.
35%, an increase of 11 from the previous quarter.
Looking at the single quarter data in the fourth quarter, Wuxi Bank is currently one of the few listed banks that has seen significant increases in revenue and net profit attributable to its mothers.
We expect preliminary results: (1) the base number in the fourth quarter of 2018; (2) the asset expansion and expansion in the third quarter of 19th began to recognize revenue in the fourth quarter, and increased revenue growth; (3) the asset structure continued to optimize, loans as incomeThe proportion of asset classes with high rates continued to rise; (4) The continuous high-quality asset quality and strict non-deterministic standards of Wuxi Banks caused most banks to erode profits without significant accruals and increase profits in the fourth quarter.Fast growth can be achieved in synchronization with revenue growth.
Improved annualized ROE is 11.
19%, a year-on-year increase of 0.
EPS is 0.
67 yuan / share, an increase of 0 over the same period last year.
The net assets attributable to all shareholders of the listed company is 6.
29 yuan / share, an increase of 0 over the same period last year.
2. The non-performing ratio has increased from the previous month, and the provision coverage ratio has increased significantly by the end of 2019. The non-performing ratio of Wuxi Bank1.
21%, an increase of 7bp from the previous month and an earlier decrease of 3bp. It is expected that the NPL ratio at the end of 2019 will only be higher than that of Changshu Bank, ranking second in the industry.
At the end of the fourth quarter, Wuxi Bank’s provision coverage ratio reached 288.
68%, a sharp increase of 53 over the earlier period.
92 averages, close to 300% of regulatory indicators.
We believe that the significant increase 无锡桑拿网 in the provision coverage ratio of Wuxi Banks is in essence that Wuxi Bank has significantly increased the provision and provision strength in 19 years, and the high-quality asset quality of Wuxi Bank has significantly increased the denominator (non-performing loan) of provision coverage ratioLess than the growth rate of the numerator (loan loss allowance), the provision coverage ratio must be improved.
High-quality asset quality will make it lighter to continue to increase provisioning pressure in the future, and there is a certain amount of margin for nurturing profits.
3. The growth rate of deposits and loans exceeded the growth rate of assets and liabilities, and the structure continued to be optimized. At the end of 2019, the total assets of Wuxi Bank were 1,618.
79 ppm, an increase of 4 from the end of the previous year.
85%, of which the loan budget is 849.
310,000 yuan, an increase of 12 over the end of last year.
73%, which is nearly 8 units higher than the growth rate of asset scale; the proportion of total assets is 52.
47%, an increase of 3.
It is expected to increase in micro-micro loans, home mortgage loans and some online consumer loans.
The total deposit is 1,281.
960,000 yuan, an increase of 10 over the end of last year.
70%, which is nearly 6 units higher than the rough budget growth rate; it accounts for 85% of the total debt.
31%, an increase of 4.
Among deposits, the size of structured deposits is expected to decrease in the fourth quarter, while the proportion of time deposits will increase.
4. Investment suggestion In the fourth quarter, the performance of Wuxi Bank exceeded expectations, and it is one of the few listed banks with a significant increase in revenue and net profit attribution.
Although the non-performing ratio increased in the fourth quarter, the excess was still declining, and the asset quality remained high. At the same time, the provision coverage ratio was significantly improved by more than 50 alternatives due to the high quality of assets.
In addition, the growth rate of bank deposits and loans in Wuxi in 19 years exceeded the growth rate of assets and liabilities, and the structure continued to optimize.
We continue to be optimistic about the Bank of Wuxi. Initially: (1) the fourth-quarter performance exceeded expectations, and the structure continued to optimize while expanding; (2) the business style has been stable, focusing on corporate business and low-performing housing loans in retail businessAt the core, the overall asset quality is well controlled; (3) The retail transformation continues, and it is expected to increase residential mortgage loans with a lower impact on LPR and online consumer loans with higher yields, which will help ROE to continue to improve; (4)Estimated low.
It is predicted that the operating income will increase by 12 in 2020.
25%, with net profit growing by 14 per year.
82%, EPS and BVPS are expected to be 0 respectively.
77 and 6.
56, PE and PB are 6.
98 and 0.
82. Maintain BUY rating and 6-month target price of 7.
5 yuan, corresponding to 1.
14 times 20 PB.