浦发银行(600000):资产质量稳健 数字化转型推进

Pudong Development Bank (600000): steady asset quality and digital transformation

華泰證券 ·  Aug 29, 2022 00:00  · Researches

Steady quality of assets and promotion of digital transformation

The net profit, operating income and PPOP of Pudong Development Bank in January-June were + 1.1%, + 1.3% and + 0.2% respectively compared with the same period last year, and the growth rate was higher than that in January-March-2.6pct, + 0.3pct and + 0.4pct. The company's interest rate spread has stabilized and rebounded, asset quality is sound, and risk resistance has been strengthened. We maintain the predicted EPS of 1.91, 2.02 and 2.15 yuan in 22-24 years, and the predicted value of BVPS in 22 years is 20.48 yuan, corresponding to 0.38 times of PB. Comparable company's 22-year Wind unanimously predicted that the average PB is 0.55 times, the company's digital transformation enables the development, and the asset quality continues to improve, but taking into account the physical demand and industry risk concerns, we give the 22-year target PB 0.45 times, and the target price is adjusted from 10.24 yuan to 9.22 yuan, maintaining the "overweight" rating.

Assets grew steadily and spreads stabilized and rebounded

The year-on-year growth rates of total assets, loans and deposits at the end of June were + 4.7 per cent, + 2.8 per cent and + 6.4 per cent respectively, compared with + 0.3pct,-0.6pct and-1.9pct at the end of March. Retail loans account for 52% of Q2 new loans. The deposit demand rate at the end of June was 46.6% higher than that at the end of March-0.5pct. The net interest margin from January to June is 1.84%, which is higher than that of + 1bp in 2021, in which the rate of return on interest-bearing assets and the rate of return on loans are 4.03% and 4.66% respectively compared with-3bp and-3bp in 2021. The cost of interest-bearing liabilities and the cost of deposits are 2.24% and 2.06% higher than those of-5bp and + 5bp in 2021, respectively. Deposit costs have increased due to the decline in demand ratio, but the optimization of interbank debt costs and debt structure optimization have led to a decline in the comprehensive cost of liabilities.

The middle income increased slightly compared with the same period last year, and the digital transformation was promoted.

The intermediate business income from January to June is + 0.1% compared with the same period last year, which is faster than that from January to March-2.4pct. The income from business such as agency / trusteeship / investment banking shows negative growth due to the impact of the market, and the bank card business has a relatively steady growth compared with the same period last year. The balance of non-capital preservation financing is 1.1797 trillion yuan, which is 0.8% higher than that at the end of 2021. Other non-interest income in January-June was + 1.7% compared with the same period last year, which was faster than that in January-March + 8.8pct, of which the investment profit and loss was 8.7 billion yuan, up 29% from the same period last year. The company continued to promote digital capacity-building, retail mobile banking MAU to 22.39 million, + 27% from the beginning of the year, maintaining good growth. At the end of June, the capital adequacy ratio and core tier one capital adequacy ratio were 13.84% and 9.31% respectively, higher than-0.22pct and-0.23pct at the end of March.

The bad indicators have both dropped, and the ability to resist risks has been enhanced.

At the end of June, the non-performing loan ratio and provision coverage rate were 1.56% and 158% respectively, compared with-2bp and + 12pct at the end of March. The non-performing balance and ratio fell for ten consecutive quarters, and the asset quality was sound. The attention rate decreased by 2bp to 2.15% compared with Q1. Compared with the end of 2021, the bad rate of public loans decreased by 26bp to 1.91%, the bad rate of manufacturing and wholesale loans effectively decreased, and the bad rate of personal loans increased by 14bp to 1.42% compared with the end of 2021, of which the bad rate of personal business loans increased by 30bp, mainly affected by the epidemic. More than 90 days overdue loans / non-performing loans are 91%, compared with + 1pct at the end of 2021. The annualized bad generation rate of 22Q2 is 1.21%, which is higher than that of-0.90pct and Q1+0.14pct. Q2 annualized credit cost is 1.92%, year-on-year + 0.01pct, compared with Q1+0.70pct.

Risk hint: the duration of the economic downturn is longer than expected, and the deterioration of asset quality is higher than expected.

The translation is provided by third-party software.

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