Highlights of the annual report and quarterly report: 1. Revenue and profit before provision continued to improve. In 2020, the annual operating income and pre-provision profit improved steadily, leading to a positive growth rate of net profit. 1Q21 operating income and pre-provision profit continued to improve, achieving a year-on-year growth rate of 6% +, but the marginal enhancement and superposition base of provision provision was higher, which narrowed the growth rate of net profit to a certain extent. 2. Retail transformation continues to advance, and retail credit and deposit growth is not weak. In 20 years, individual loans accounted for 68.6% of new loans, and the proportion of personal housing loans, consumer loans and business loans increased significantly, and the proportion of new loans in 2020 was 31.2% and 37.1%, respectively. Deposit-end residents' deposits support the expansion of deposits, and the degree of deposit liquidity remains stable. 3. Wealth management has led to an increase in net handling fee income, which is + 8.4% and + 9.1% in 2020 and 1Q21 compared with the same period last year, mainly due to the growth of agency business renewal. The company fully grasps the financial needs of customers, continues to increase resource investment, and speeds up the transformation and development of wealth management business.
Insufficient annual and quarterly reports: net other non-interest income accumulated in the first, fourth and first quarter was-47.9% and-9.4% compared with the same period last year, mainly due to a sharp drop in profit and loss in fair value changes and a decline in investment income. 2. The annualized cost-to-income ratio of a single quarter has risen slightly. Compared with the same period last year, the annualized cost and income of 1Q21 increased slightly by 1.86pct to 21.22%, of which business and management fees increased by 16.8% compared with the same period last year. The company is expected to increase investment in science and technology, continue to promote the construction of artificial intelligence technology platform, and science and technology can improve the efficiency of operation and management.
Investment suggestion: company 2021E, 2022EPB0.78X PB0.90X/0.80X 0.71X * PE7.15X * 6.67X (City Commercial Bank) PE9.24X/8.07X), the company is the first listed city commercial bank in Northwest China, with a multi-balanced ownership structure, a gradual pick-up in revenue and net profit growth driven by structural optimization, a stable proportion of high-income loans at the asset end, and a high absolutely high proportion of deposits on the liability side, which strengthens the advantage of low interest payment rate and the consolidation of capital. It is recommended that you pay attention to it.
Risk hint: the economic downturn is higher than expected, and the company's operation is not as good as expected.