Accelerated scale growth: in recent years, the Bank of Beijing has adhered to the "five major transformations" and made a good start to the second entrepreneurial journey. By the middle of 2023, the total assets reached 3.63 trillion yuan and the loan reached 1.93 trillion yuan, ranking first in the city commercial bank. In the first half of 2023, total assets and loans increased by 7.22% and 10.14% respectively compared with the beginning of the year.
The loan structure has been optimized, the proportion of retail credit and income contribution has increased: the credit structure of the Bank of Beijing has been continuously optimized. By the middle of 2023, the proportion of corporate loans and retail loans was 58.5% and 30.9% respectively, the proportion of retail loans continued to increase, retail AUM continued to grow, and the overall income structure of the company continued to optimize. Over the same period, the company's retail revenue accounted for 31.9% of total revenue, up 14.9 percentage points from the end of 2019.
The public loan industry has been optimized, and the proportion of retail consumption loans has increased: driven by the service of the real economy, transformation and development, Puhui small and micro, science and technology innovation finance and cultural finance, the key support of these countries and the rapid growth of loans in the characteristic business areas of the Bank of Beijing have provided the basis and driving force for the subsequent scale expansion. In addition, the proportion of loans from relatively low-risk industries has increased in public stock loans. In terms of retail loans, by the middle of 2023, the total proportion of personal consumption loans and operating loans reached 48.4%, of which 24.1% was 14.4 percentage points higher than that in 2019. The increase in the proportion of personal consumption loans has played a strong supporting role in stabilizing the comprehensive rate of return on retail credit.
The historical stock burden is gradually cleared, and the asset quality continues to improve: from the changes in the regional structure of credit in recent years, the new credit is mainly invested in Beijing, Zhejiang Province, Shandong Province, Jiangsu Province and Shenzhen City. In economically developed areas, the impact of economic fluctuations is relatively low, and the probability of the formation of non-performing assets is also relatively low, which helps to maintain the overall stability of asset quality. In terms of retail credit, due to the structural adjustment of personal loans, the non-performing rate of retail loans continues to rise.
However, taking into account the adjustment of the business structure, the defect rate is still in a reasonable position in the industry.
Profit forecast and investment suggestions: the expansion of the asset scale of the Bank of Beijing has accelerated, the new credit investment has focused on high-quality areas, the stock burden has been gradually cleared, and asset quality is expected to continue to improve.
According to Bank of Beijing's A-share closing price of 4.66 yuan on September 25, corresponding to 0.39 times PB in 2023, the company maintains its overweight rating due to its current low valuation, high dividend yield and expected improvement in future fundamentals.
Risk factors: the banking industry as a whole is greatly influenced by macroeconomic, monetary and regulatory policies. changes in economy and related policies will have an important impact on the operation of banks. Including changes in net interest margin, asset quality expectations, and so on.