China Merchants Bank (600036) Semi-annual Report Review: Stable Interim Performance and Continuous Advancement of 重庆耍耍网 Customers and Technology
Matters: China Merchants Bank announced the 19th half-year report, and the net profit in the first half of 2019 increased by 13 each.
1%, operating income rises by 9 per year.
6%, net interest income rises by 13.
5%, net fee income rose 4% per year.
Total assets 7.
2 trillion yuan (+6.
63%, HoH), of which loan +9.
93% HoH, deposit +6.
8% is high.
NPL ratio 1.
23% (-12BP, QoQ); provision coverage rate is 394.
95pct, QoQ); annualized ROE19.
14pct, YoY); the loan-to-loan ratio is 4.
05pct, QoQ); capital adequacy ratio 15.
Ping An’s point of view: The growth rate of interim profit is higher than that of the first quarter, but the growth rate of revenue and PPOP are both lower than the previous quarter.
1%, up 1佛山桑拿网 from the previous quarter.
The eight averages are mainly due to the contribution of the decline in provision and income.
The company recorded revenue and PPOP growth of 9 in the first half of the year.
3%, down from 12 in the first quarter.
1% and 14.
The level of 4% was mainly due to a 1% year-on-year decline in non-interest income in the second quarter and a ten-year increase in expenses in the second quarter.
5% (1 quarter quarter growth of 6.
3%), affected by expenses, the growth rate of PPOP in the first half of the year was lower than the growth rate of revenue1.
However, benefiting from the further improvement of asset quality, the provision in the second quarter decreased every year.
7% (Q1 quarter quarter growth of 17.
5%), the provision for the first half of the year increased by 5.
2%, profit growth after provisioning increased by 1 earlier than PPOP.
6 up to 9.
In the second quarter, the interest rate difference fell by 3BP, mainly due to the relatively rigid cost on the debt side and a slight decline in risk appetite on the asset side, which affected the company’s net interest margin in the first half of the year to be 2.
7%, a year increase of 16BP, the second quarter net interest margin was 2.
69%, down 3BP from the previous month.
The quarter-on-quarter decline in interest rates was mainly due to: 1) the core debt was highly dependent, and the ratio of deposits to interest payment resistance was 73.
6%, did not obviously benefit from the loose market environment in the second quarter; 2) Deposits in the second quarter increased by 6 compared with the first quarter.
1% (the first quarter increased by 0 compared with the beginning of the year.
6%), the structure of the current rate decline (down nearly 6 samples from earlier) caused the savings cost rate to increase by 4BP, dragging down the interest payment cost rate fell by only 1BP; 3) the asset side accelerated expansion in the second quarter, but the allocation is relatively prudent, and asset returnsThe rate is down 2BP from the previous month.
Retail finance 3.
0 Digital transformation continued to advance, and risk management was enhanced to release risks. In the first half of the year, monthly active users (MAU) of the two major APPs, the main platforms operated by bank customers, reached 8511.
110,000 households, an increase of 5% in the early and early stages; China Merchants Bank ‘s APP wealth management investment series accounted for 70% of the company ‘s retail wealth management counters, and the amount of consumer financial transactions on the Pocket Lifestyle APP accounted for 48% of the credit card consumer financial transactions; retail financial taxFormer profit accounted for 60% of the group’s pre-tax profit, surpassing the increase of 5.
In the first half of the year, the company increased its disposal and collection efforts, and the scale of write-offs increased by 5.6 billion. The non-performing ratio decreased by 12BP from the end of the first quarter, and the improvement in asset quality was better than that of its peers.
Investment suggestion: Grasp the two main lines of customers and technology. The company’s performance is stable and good in the first half of the year. Although revenue and PPOP growth rates have fallen short of expectations, from the perspective of conversion efficiency, strategic indicators such as MAU, etc.Good progress, the retail advantage of China Merchants is the result of maintaining the strength of the retail transformation strategy. It is believed that under the continuous advancement of future technology-led strategy, China Merchants will have more advantages in technology and customer experience.
According to the company’s semi-annual report, we maintain our profit forecast and expect the company’s net profit growth rate to be 14 in 19/20.
2% / 13.
2%, currently corresponding to 19/20 PB is 1.
42, PE is 9.
78. Maintain the company’s “Highly Recommended” rating.
Risk Tips 1) Asset quality is affected by the economic beyond expected range, and credit risk is exposed centrally.
If the macro-economy exceeds expectations, it will inevitably cause the industry’s overall asset quality pressure and affect the disposal and recovery of non-performing assets, thereby affecting the industry’s profit growth rate.
2) The policy budget is stronger than expected.
Under the background of deleveraging and risk prevention in the past 18 years, the breadth and depth of industry supervision have been continuously strengthened. Variable policies and regulatory regulations such as new asset management regulations have been introduced. Financial coordination and supervision are expected to be further strengthened under the keynote of stability maintenance.
However, if the overall regulatory trend or policy change in a certain area exceeds expectations, it may adversely affect the stability of the industry.
3) Systemic risks arise from market decline.
Bank stocks are an important component of large-cap stocks, and their overall rise and fall are closely related to market investment style.
If there is systemic risk in the market situation and the overall market is expected to decline, it may drive the industry to decline.