Everbright Bank (601818) 2019 Interim Report: Profit Growth Exceeds Expectations, Structural Adjustments Continue

Everbright Bank (601818) 2019 Interim Report: Profit Growth Exceeds Expectations, Structural Adjustments Continue

Investment Highlights Financial Highlights: 1. Net profit growth achieved the best level since the end of the year.

In the second quarter, the annual growth rate of PPOP and net profit was 26.

8%, 32.

1%, 13.


2. The deposit structure is improving: the growth rate of personal deposits continues to expand, at least 38% in 1H19; the proportion of margin deposits has fallen; the interest rate on the debt side has decreased by 6bp from the previous quarter.

3. The asset quality is generally stable: the non-performing ratio in the second quarter decreased by 2bp to 1 from the previous quarter.

57%, single quarter bad net generation decreased by 16bp to 1 compared with the first quarter.


4. Net handling fee increases by 21 each year.

7%, bank card fees are incomparable (adjust the caliber), and other sub-items have maintained high increases.

Insufficient financial reports: The overdue rate and the generation rate have risen to a certain extent, mainly due to the increase in loans overdue within 90 days.

The overdue rate, the annualized net generation in a single quarter overdue for more than 90 days continued to rise 21,69bp to 2 earlier.

57%, 1.


The company’s determination of badness is somewhat looser than before.

  In the second quarter, the revenue and PPOP growth rate had a certain margin on the basis of the high growth rate in the first quarter, but still achieved a bright growth rate of 27% and 32%.

The annual growth rate of net profit attributable to mothers is significantly broader, increasing 13% annually, the best growth rate since the end of 13.

1Q19-1H19 preliminary revenue, PPOP, attributable to net profit or growth rate were 33.

7% / 26.

8%, / 37% / 32.

1%, 7.

5% / 13.


  1H19 performance increase: positive contribution performance factors are scale, interest margin, cost, and growth rate.

  The negative contribution factor is non-interest-bearing, provision.

Taking a closer look at the changes in the contribution of various factors, the marginal contribution to performance has improved: 1, non-interest: due to the 上海夜网论坛 adjustment of the credit card installment income caliber in the first quarter, negative contribution to performance has contributed to the marginal decline of non-interest negative contribution in the second quarter.

2. The positive contribution of cost is enhanced.

In the third quarter and the second quarter, the provisioning accrual speed decreased marginally, and its negative contribution to performance declined.

The marginal contribution attenuation is: 1. The growth rate of the scale fluctuated slightly in the second quarter.

2. The positive contribution of interest spread decays.

3. The positive contribution of formaldehyde decays.

  Investment suggestion: The company 2019, 2020E PB 0.

62X / 0.

56X; PE 5.

66X / 5.

25X (Share Bank PB 0.

79X / 0.71X; PE 6.

50X / 6.

05X), China Everbright Bank 18 continued to increase its performance continuously, and adjusted its negative capital structure to return to the traditional deposit and loan business, and continued to consolidate its advantages in intermediate business.

The company evaluates that the safety margin is high and the management is improved.

  Risk warning: The economic growth exceeds expectations, and the company’s business advances less than expected.