Depth-Company-Bank of Beijing (601169): Earnings before provision increased rapidly

Depth 南京桑拿网 * Company * Bank of Beijing (601169): Earnings before provisioning increased rapidly

The profitability of Bank of Beijing in the first half of the year has improved significantly compared to 2018, the company’s retail transformation has gradually realized transformation, and the retail deposit and loan business has performed better.

In terms of asset quality, in the second quarter, the company’s non-performing production increased, and the margin of asset quality improved. At present, the company is in the stage of disposal of bad stock.

Maintain the company’s overweight rating.

The main points of the support level before the provision of profits realized rapid growth, credit costs increased.

Bank of Beijing’s revenue in the first half of 2019 increased by ten years19.

6%, a slight change from the previous quarter, 武汉夜网论坛 mainly due to the impact of litigation fee income (-5.

53% year-on-year).

But overall, the company’s revenue performance has improved significantly compared to 2018.

Among them, benefiting from the improvement in interest margin, net interest income increased by 12 in the first half.

3%, which is basically similar to the first quarter (12.

4%).

The company stepped up its provisioning efforts and increased the cost of credit by 13BP to 1.

27%, so net profit growth in the first half of the year from 24 before provision.

1% interest rate 8.

56%, the rapid growth of net profit in the first quarter fell by about 1 average.

The gradual improvement of the retail industry gradually increased, and the increase in peers’ reduction of cost pressures eased the widening of interest rate spreads.

Retail loans at the end of the second quarter increased by 10 from the beginning.

4%, leading to an increase of 0% in retail loans.

7 up to 30.

3%.

In terms of structure, high-yield loans such as operating loans and consumer loans accounted for 32.

7%, an increase of 1 earlier.

6 averages that promote loan yields (4.

81%) up.

On the debt side, retail deposits increased by 15 at the end of the second quarter.

7%, a significant increase in the same industry, leading to an increase in retail deposits in the initial period1.

2 up to 22%.

In terms of interest margin, in our opinion, in addition to the improvement in loan yields, the improvement in cost pressure on the debt side is the company’s interest margin in the first half of the year (1.

91%) Another important factor for broadening.

Negative identification has become stricter, and asset quality pressure is under control as a whole.

Bank of Beijing’s NPL ratio rose by 5BP to 1 from the first quarter.
.

45%, we believe that it is related to the debt problems of individual corporate customers and the stricter and stricter identification of bad companies.

At the end of the half year, loans / non-performing increases overdue for more than 90 days fell to 78.

7%.

We estimated that the company’s single quarterly annualized bad production in the second quarter generated a replacement of 1%, and the earlier quarter (2%) dropped.

Provision coverage ratio in the second quarter decreased by 1 compared with the first quarter.

58 averages to 213%, compared with the first quarter, loan allocation increased slightly by 8BP to 3.
08%.
We believe that the company is currently in the stage of disposal of bad stocks, and the overall pressure in the future can be controlled.

It is estimated that in the second half of the year, we will lower the EPS of Bank of Beijing to 1 in 2019, taking into account the weakening of the positive contribution of the high-cost interbank compensation to the interest margin and the increase in the company’s provisioning strength.

03/1.

12 yuan (was 1).

04/1.

15 yuan), the adjusted net profit growth rate is 8.

4% / 9.

4% (was 9).

5% / 10.

7%), currently corresponding to 2019/2020 PB0.

58x / 0.

53x, maintaining the company’s overweight rating.

The main risks faced by the rating: the economic downturn caused the asset quality to deteriorate more than expected.