Zhangjiagang Bank (002839) 19-year performance express report comment: revenue maintained high growth and bad decline
Event: On February 3, the Zhangjiagang Bank released a 2019 performance report with revenue of 37.
5 billion, a year-on-year increase of +25.
0pct); net profit to mother 9.
5 billion, a year-on-year increase of +14.
ROE is 9.
Defective rate 1.
Revenue growth remains high.
Revenue growth in 19 years was 25 in ten years.
1%, an increase of 1 pct in the early 18 years, 杭州夜生活网 maintaining a high growth rate, because non-interest income increased by 80 in 19Q3.
6%, the second is the 19-year growth rate of loans in 18 years.
7%, supporting a high increase in interest income.
The growth rate of net profit steadily increased, releasing space to join.
The drag effect of the provision for operating profit reached 12.
2pct, compared with May 18.
2 pct has expanded significantly.
Although it affected the release of the growth rate of net profit in 19 years, it reserved space for the release of future performance.
The launch level was high in the early 19’s.
Both loans and investment in financial assets showed quarter-on-quarter incremental growth, which resulted in a series of asset size growth curves that were relatively steep and within expected ranges.
The asset structure has improved, supporting a rebound in net interest margin.
16 years ago, its net interest margin ranked lower among eight rural commercial banks.
It has increased 66BP in more than 4 years, and it is indispensable for structural optimization and adjustment.
In 19Q3, the net interest margin of Zhangjiagang Bank was as high as 2.
83%, ranked second among listed rural commercial banks, only 3 after Changshu.
Significant improvement in asset quality.
In the first three quarters of 19 years, the loan growth rate was high, but the non-performing ratio increased first and then decreased, and the loan-to-loan ratio increased steadily, which may indicate that Zhangjiagang Bank rigorously identified the non-performing loans and increased its provisioning.
Although the 19-year ROE has been slightly lowered, the asset quality has been improved and the pressure for future generation of bad results has been reduced.
As a result of increased write-off efforts, the level of provision decreased slightly from the previous quarter.
In 19, the provision coverage ratio increased by 22 pct compared with 18 years, and the loan-to-loan ratio increased by 8BP, but the chain ratio continued to decline, while the non-performing ratio decreased by 10BP to 1 in 19 years.
37%, down 5BP in the fourth quarter, or because of increased write-off efforts in the fourth quarter.
Profit forecast and estimation: Structure optimization supports upward net interest margin; asset quality improves significantly; fundamentally, small and micro businesses have significant 四川耍耍网 advantages.
It is expected that the EPS in 20/21 will be 0.
59/0.67 yuan, corresponding to 0 for PB.
74 times, give “recommended” rating.
Risk warning: deterioration of asset quality; weak economic stabilization; squeeze on small and micro businesses.