Quarterly report highlights: in the first and third quarters, net interest income increased by 1.1% compared with the same period last year, and cumulative net interest income increased by 14.36% over the same period last year. Interest-bearing assets in the third quarter were + 4.16% month-on-month. Deposits and loans maintained a high growth in the second and third quarters. New loans increased by 9.26 billion in a single quarter, up 4.6% from the previous quarter, and the month-on-month growth rate continued to widen compared with the second quarter, accounting for a slight increase to 53.8%. The growth rate of deposits has widened for four consecutive quarters, increasing by 8.0% month-on-month, and the proportion of deposits as a proportion of total liabilities has increased by 1.7 percentage points to 70.8%. 3. The net handling fee income continues to maintain a high growth rate, which is 50.3% higher than that of 43.4% of 1H20. It is expected that the commission fee of the consignment business will maintain a relatively rapid growth.
The quarterly report is insufficient: 1. The annualized spread in the single quarter fell from 10bp to 2.09% from the previous month. The rate of return on assets was 3.98% lower than in the second quarter from the previous quarter, and the rate of interest paid on the debt side rose to 2.07% from the previous quarter 2bp. 2. The growth rate of net other non-interest income has declined a lot. Net other non-interest income was-26.5% year-on-year (1H20 + 21% year-on-year), mainly due to rising capital market interest rates, increased net loss of fair value and narrowed growth in investment income.
Investment suggestion: company 2020E, 2021E PB 1.08X 9.41X/8.31X 0.98X 9.41X/8.31X (Agricultural Commercial Bank PB 0.92X Accord 0.84X X 9.37X/8.59X), the company is actively transforming its small and micro business, the contribution of deposit, loan and revenue of retail business sector continues to increase, and the fundamentals are generally sound, which is recommended to pay attention to.
Risk hint: the economic downturn is faster than expected and the company's business is not as good as expected.