The event company released its 2021 results, KuaiBao.

Revenue and net profit growth expanded, ROE steadily increased in 2021, the company achieved operating income of 331.234 billion yuan, an increase of 14.03% over the same period last year; net profit of 119.922 billion yuan, an increase of 23.2% over the same period last year; weighted ROE of 16.94%, up 1.21% over the same period last year; and basic EPS of 4.61 yuan, an increase of 21.64% over the same period last year. Both revenue and net profit growth are better than in the first three quarters of 2021, which are expected to be related to improved net interest income, higher non-interest income and reduced provisions. In 2021, the company realized net interest income of 203.919 billion yuan and non-interest net income of 127.315 billion yuan, an increase of 10.21% and 20.73% respectively over the same period last year.

The asset side expanded steadily, and the increase in deposits on the liability side was obvious by the end of 2021, the company's total assets were 9.27266 trillion yuan, an increase of 10.90% over the end of 2020, of which the loan size was 5.570034 trillion yuan, an increase of 10.76% over the same period last year, accounting for 60.07% of the total assets. The growth of debt-side deposits accelerated, accounting for an increase in the proportion of total liabilities, and positive costs fell. By the end of 2021. The company's total liabilities were 8.404877 trillion yuan, an increase of 10.14% over the end of 2020, mainly due to the rapid growth of deposits. Of this total, deposits were 6.347038 trillion yuan, an increase of 12.77% over the end of 2020, much higher than the 6.82% growth rate at the end of the third quarter, accounting for 75.52% of the total liabilities, up 1.76 percentage points from the same period last year. The increase in the proportion of deposits will help to consolidate the cost advantage on the debt side.

The asset quality remained excellent. By the end of 2021, the defective rate of the company was 0.91%, which was 0.16% lower than that at the end of 2020 and 0.02% lower than that at the end of September 2021. The asset quality was maintained at a low level, and the asset quality continued to be optimized. At the same time, the company's provision is released at a high level, which feeds back profits. By the end of 2021, the coverage rate of the company's provision for non-performing loans was 441.34%, an increase of 3.66 and-1.8 percentage points from the end of 2020 and the end of September 2021, respectively.

On December 9, 2021, the company issued 43 billion yuan of open-ended capital bonds, which will help replenish capital and expand business space. In addition, the company's financial subsidiary, China Banking, has completed a capital increase and introduced JPMorgan Asset Management (Asia Pacific) Limited as a strategic investor, with a cumulative contribution of 2.667 billion yuan and a shareholding ratio of 10%, which is conducive to improving the corporate governance mechanism and building its own capacity. Learn from the experience of Morgan Asset Management as a leading international asset management institution in financial technology, investment research, risk management and other aspects, and then promote the company's integrated business strategy.

The investment suggestion company adheres to the "one body and two wings", continues to promote the reform and innovation of the business model, the retail financial moat is stable, the wholesale financial value appears, the business remains ahead of the industry, and the leading value is highlighted. The effectiveness of the transformation of light banks has been released, the efficiency of the use of funds has been optimized, the operating cycle has decreased, and the quality of profits has been The positioning of the large wealth management system has been established and the layout of financial science and technology has been promoted in depth, opening up space for the company's medium-and long-term business growth We are optimistic about the future development of the company and give it a "recommended" rating. We predict that the BVPS for 2022-2023 will be 32.94 RMB 37.54 yuan, and the corresponding share price PB will be 1.46 trillion 1.28 times.

The risk suggests that the macroeconomic growth rate is lower than expected, which will lead to the risk of asset quality deterioration.