Minsheng Bank (600016): Scissors Gap Eliminated and Decreased Provisions, Retail Deposits and Loans Recorded Double-digit Growth
Incident March 29, Minsheng Bank released its 2018 annual report, in which revenue increased by 8 in ten years.
66%, net profit attributable to mothers increases by 1 each year.
Brief Comment 1. The revenue has steadily picked up, and the net profit attributable to mothers has maintained a positive growth in 2018.
69 ppm, a ten-year increase of 8.
66%; net profit attributable to mother was 503.
27 ppm, an increase of ten years.
From a single quarter point of view, 4Q revenue grows by 7 per year.
24%, a year-on-year growth rate of 6 compared with the previous quarter.
40 averages; 4Q net profit every 20.
15%, a year-on-year growth rate of 27 from the previous quarter.
In terms of revenue structure, the final net income increased by -11.
41%, net non-interest income goes up by 38 each year.
The ROE initially attributable to common shareholders reached 12.
94%, a year-on-year decrease of 1%.
09 averages; EPS is 1.
14 yuan, an increase of 0 over the previous year.
The BVPS attributable to ordinary shareholders at the end of the year was 9.
37 yuan, up 11 earlier.
2. NIM rose by 23 BP, and both the return on assets and the cost of liabilities increased by a margin, achieving a net interest income of 766.
80 ppm, which was reduced by 212 due to changes in accounting standards.
62 trillion, net income after reduction of 979.
42 ppm, an increase of 13 in ten years.
16%, accounting for 62% of revenue.
48%, an increase of 2 over the previous year.
Among them, ^ income increased after a decade of reduction.
13%, mainly benefited from the increase in the size of loans and advances and interest rates.
Interest expenses increase by 9 per year.
91%, mainly from the rise in the cost of interest-bearing debt.
Pioneer, company NIM up to 1.
73%, an increase of 23 BP from the previous year.
Among them, the comprehensive yield of interest-earning assets increased by 52 BP over the previous year. The largest part of the contribution came from loans and advances. The average yield increased by 48 BP. Among them, the yield on retail loans increased by 46 respectively. And 54 BP.The comprehensive cost ratio of the interest payment coefficient increased by 23 BP compared with the previous year. The most affected part came from customer deposits. The average cost rate increased by 41 BP, of which the cost ratio of regular public reserves increased by 61 BP, and the term retail deposit increased50 BP.
3. Non-interest income increased slightly, and bank card fees increased sharply in 18 years to achieve net fee and commission income of 481.
3.1 billion, an increase of 3 over the previous year.
8.9 billion, an increase of 0.
Among them, the bank card handling fee increased by 69 from the previous year.
370,000 yuan, an increase of 31.
52%; agency business procedures were 27 lower than the previous year.
79 trillion, down 23 a year.
86%, commissions for custody and other fiduciary businesses decreased by 59 compared with the previous year.
93 trillion, down 45 a year.
80%. Although the increase in bank card fees did not withstand the decline in custody and agency business, the fee and commission expenses decreased compared with the previous year.
7.3 billion, so overall program fees and net commission income recorded positive growth.
Achieve other non-interest income 319.
5.8 billion US dollars, mainly due to the implementation of the new financial instrument specifications, some business measurement methods changed, the recognition of index revenue instead of the recognition of non-indexed revenue increased by 212.
62 ppm, excluding other non-interest income after the impact of changes in accounting standards106.
96 ppm, a ten-year increase of 7.
4. The proportion of attention categories decreased, the non-performing ratio rose slightly, and the provision coverage ratio was less than the non-performing loan balance at the end of 2018 at the same period last year, which was 538.
660,000 yuan, an increase of 59.
77 trillion, an increase of 12.
48%; NPL ratio 1.
76%, a slight increase of 0 from the end of the previous year.
05 shares; of which, the non-performing ratio of corporate loans increased by 2bp.
From the perspective of the region, the increase in non-performing surplus in North and South China is staggered. From the perspective of the industry, the increase in non-performing balances in the financial industry, construction and real estate industries has increased by 1341, 4437, and 55.6 billion US dollars, respectively.
At the end of the year, the outstanding loan balance was 1033.
7.1 billion, accounting for 3.
38%, 68bp earlier, 34bp lower than in the previous two quarters.
The scissors difference is less than 100%, and the bad identification becomes stricter.
The balance of loans overdue for more than 90 days is 520.
600,000 yuan, accounting for 1.
7%, down 61bp from the beginning of the year.
The ratio of loans overdue for more than 90 days to non-performing loans was 96.
65%, a decrease of 39 from the end of the previous year.
The provision coverage ratio is lower than that of the same period last year.
NPL provision coverage ratio was 134.
05%, a decrease of 21 from the end of the previous year.
56 samples, according to the latest regulatory requirements for provisioning in March 18, are estimated to be higher than the regulatory requirements; loan provision ratio 2
36%, a decrease of 0 from the end of the previous year.30 units.
18 years accrued / returned to 436.
110 thousand yuan, an increase of 114.
31 trillion, written off or transferred 584.
210,000 yuan, an increase of 356.
The reason for the slight increase in the non-performing loan ratio and the provisioning indicator is that all loans that were overdue for more than 90 days were included in the increase in non-performing potential non-performing balances and declines in coverage in response to regulatory requirements.NPLs were cleared, and the pressure on NPL confirmation in the future was severe and complicated.
5. The performance of the retail business was dazzling, and the scale of retail deposits and loans maintained a double-digit growth. In 2018, the retail business revenue was 564.
09 million yuan, an increase of 17.
12%, accounting for 37% of total revenue.
57%, an increase of 2.
35 singles; realized retail non-indexed net income of 347.
540,000 yuan, an increase of 38.
61%, non-interest income accounted for 61 of retail business revenue.
61%, an increase of 9.
Among them wealth products received 38.
06%, an increase of 29.
24%; income from fund sales was 7.
880,000 yuan, an increase of 64.
81%, received 4 from underwriting and underwriting.
50,000 yuan, an increase of 109.
84%; net worth wealth management sales exceeded 500 billion yuan, surplus increased earlier 43.
At the end of 2018, the total number of retail non-zero customers (financial assets were greater than zero each month and day) was 3,839.
450,000 households, an increase of 10 over the end of last year.
96%; the number of high-end retail customers (average monthly financial assets of more than 50,000 yuan) 293.
500,000 households, an increase of 12 over the end of last year.
15%, the number of private customers (more than 8 million financial assets) 19,250, an increase of 16 earlier.
The Bank’s personal customer management assets (AUM) were 16,501.
20 ppm, an earlier increase of 14.
88%, private customers AUM reached 3582.
86 ppm, an earlier increase of 16.
On the asset side, the balance of retail loans at the end of 20181.
22 trillion, an increase of 1289 over the beginning of the year.
7.6 billion, with retail loans accounting for 39.
84%, an increase of 1 from the beginning of the year.
01 averages.In terms of structure, the loans are mainly small and micro enterprise loans, housing loans and credit card loans.
02 and 3932.
49 trillion, an earlier change of +423.
84 and +992.
Among them, the NPL ratio of newly issued small and micro loans since 2016 is 0.
19%, overdue rate is 0.
42%; credit card issuance is gradually 4954.
720,000 cards, including 1080 new cards issued in 2018.
860,000 pieces, an increase of 3 over the previous year.
91%, transaction amount 2.
21 trillion yuan, an increase of 34.
18%, the total budget of accounts receivable is 3932.
490,000 yuan, an increase of 33.
75%, non-performing rate 2.
15%, a slight increase of 8bp.
On the debt side, the balance of personal deposits at the end of 2018 was 5,752.
8.9 billion, an increase of 832 over the end of the previous year.
810,000 yuan, an increase of 16.
93%, of which the personal time deposit balance was 3773.
56 ppm, an increase of 21 from the beginning of the year.
98%, accounting for 10% of total deposits.
43% increased to 11.
6. Positioning the technology and financial strategy to open up the online financial business In 2018, the Group continued to expand online financial business through four major sectors: direct banking, retail online finance, corporate online finance and online payment.
Among them, the direct sales bank, as the leading business of Minsheng Bank, has maintained the first in the industry for four consecutive years in terms of brand reputation and market awareness. At the end of 18, the number of direct banking customers reached 1917.
130,000 households, an increase of 75.
65%; management of financial assets 1322.
910,000 yuan, an increase of 26.
Launched a new mobile banking on the retail business side, realizing unified entrance, face recognition, online wealth management transfer, and optimization of more than 80 insurance products; the number of customers reached 4,790.
390,000 households, an increase of 949 over the beginning of the year.
Launched corporate online banking 2 on the company’s business side.
0 and special mobile microservices, innovation fund sales butler and maintain the first part of the industry; corporate online banking signed customers 116.
180,000 households, an increase of 11 from the beginning of the year.
On the online payment side, the “Minshengfu” brand was created through mobile payments and online acquisitions, with 400 cross-border customers.440,000 households with a cumulative transaction volume of 2,305.
600,000 yuan; 1,275 online payment merchants, with a cumulative transaction volume of 6.
7. Core Tier 1 capital adequacy ratio, Tier 1 capital adequacy ratio and leverage ratio increased by the end of 2018.
16% and 11.
75%, which are + 30bp, + 28bp, and -10bp respectively.
Leverage continues to rise, and leverage restructuring at the end of 18 6.
04%, compared with 5 at the end of 17 years.
81% rose 23bp.
In addition, the company has issued 40 billion secondary capital bonds in March 2019, and announced the pre-issuance of 40 billion perpetual bonds, which is beneficial to further replenish capital.
8. Investment suggestions From the perspective of 2018 performance, the company mainly has the following highlights: First, its revenue has steadily recovered and its net profit has continued to increase.
Operating income 武汉夜网论坛 experienced a decline of 7 in 2017.
After 04%, the growth rate rebounded to 8 in 2018.
66%, while net profit attributable to mothers increases by 1 each year.
03%, maintaining positive growth.
Second, NIM picked up.
The company’s NIM increased by 23 BP over the previous year.
The comprehensive yield of interest-earning assets is higher than the comprehensive cost of interest-bearing debt. The non-performing rate has remained stable while the yield has increased by 52bp. The company’s pricing and risk control management have achieved initial results.
Third, asset quality is improving.
Although the non-performing loan ratio has increased slightly by 5bps for more than 18 years, the average percentage of loans in focus categories and loans overdue for more than 90 days have declined.
Due to regulatory 杭州夜网 requirements, all loans that were overdue for more than 90 days were considered as bad, and the non-performing burdens were recovered. The pressure on the recognition of non-performing loans in the future has deteriorated severely.
Fourth, the retail scale has increased significantly.
Retail deposits and loans maintained double-digit growth, and the credit card business developed well.
Fifth, take advantage of direct banking.
Fully promote the online banking business, while maintaining the first advantage of the direct banking industry, and comprehensively upgrade the retail and corporate online banking and online payment businesses. These customers have maintained double-digit growth.
Sixth, non-standard and peer pressure is reduced.
Minsheng Bank’s non-standard and inter-bank debt accounted for a relatively high proportion. It was previously affected by strict financial supervision and it is estimated that it has been dragged down.
At this stage, the marginal policy is relaxed, and the decline in interbank interest rates will lead to an improvement in the interest margin of Minsheng Bank. The reduction of non-standard pressure will also help its valuation repair.
According to the relatively high ratio of interbank debt, the net interest margin is highly flexible. It is expected that all loans with a period of more than 90 days will improve the non-performing assets. The pressure for private enterprises to meet the standards will be relatively small. The corporate governance structure will be improved, and the ROE will be gradually increased.
It is expected that the company’s operating income for 19/20 will increase by 9 per year.
22% / 9.
60%, net profit attributable to mothers increases by 4 per year.
60% / 7.
09%, corresponding to PE of 6.
91, corresponding to PB is 0.
Maintain BUY rating, raise 6-month target price to 9 yuan.
9. Risks suggest that the downward pressure on the economy will increase, and the rise in credit risk of small and micro enterprises may affect the company’s asset quality; the increased competition pressure on deposits may increase the cost of liabilities.