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北京银行(601169)2022年报点评:业绩高增 底气充足

Bank of Beijing (601169) 2022 Report Review: Strong Performance and Strong Ambition

東北證券 ·  Apr 9, 2023 00:00  · Researches

Profit statement: The downward trend in credit costs is sufficient, and the ability to release performance has increased dramatically. Bank of Beijing's revenue for the full year of 2022 was basically the same as in 2021. Among them, net interest income increased 0.12% year on year, and median income increased 17.96% year on year, a significant increase over previous years, reflecting the improvement of the Bank of Beijing's wealth management capabilities in the context of retail transformation. Guimu's net profit increased 11.40% year over year, mainly due to a sharp improvement in credit costs in the fourth quarter. The reason was that when Bank of Beijing was fully exposed to bad conditions in the second quarter, its asset quality burden was significantly reduced, and its ability to release performance increased dramatically.

Balance sheet: structured and optimized for the future. By the end of 2022, the total assets of the Bank of Beijing were 3.39 trillion yuan, an increase of 10.76% over the beginning of the year; loans increased 7.42% from the beginning of the year, of which retail loans increased 8.69%, and retail transformation continued to advance. In terms of future-oriented specialty businesses, the balance of science and innovation finance was 194.770 billion yuan, an increase of 23.35% over the beginning of the year; the balance of public green loans was 110.083 billion yuan, an increase of 132.01% over the beginning of the year. On the debt side, total deposits increased by 12.59% compared to the beginning of the year. Among them, savings deposits increased 21.7%, the highest growth rate in nearly ten years.

Asset quality: Poor asset quality has been fully exposed, and the outlook for asset quality is optimistic. By the end of 2022, the Bank of Beijing's non-performing loan ratio was 1.43%, down 21 bps from the end of the year; the provision coverage ratio was 210.04%, up 15 percentage points from the end of the year, and risk compensation capacity was steadily improving. Meanwhile, the Bank of Beijing's non-performing asset generation rate continues to decline. Combined with the significant improvement in asset quality-related indicators in the fourth quarter compared to the end of the half of the year and the marked increase in performance release capacity, we believe that the Bank of Beijing's bad inflection point has already arrived, and the asset quality outlook is optimistic.

Investment advice: The Bank of Beijing's low and high dividend rate has created a solid margin of safety for it. Moreover, with poor inventory clearance and the advancement of retail transformation, combined with Beijing's location advantages, the Bank of Beijing has strong certainty that asset quality optimization and profitability improvements will improve, and it is optimistic about valuation repair opportunities. Judging from the 2022 annual report, when the Bank of Beijing's bad performance was fully exposed in the second quarter, its asset quality burden was significantly reduced, and its ability to release performance increased dramatically. Combined with the significant improvement in asset quality-related indicators in the fourth quarter compared to the end of the year, we believe that the Bank of Beijing's bad inflection point has already arrived, and the outlook for asset quality is optimistic. The current stock price corresponds to the 2022/2023/2024 PB of 0.38/0.35/0.32 respectively, maintaining the “buy” rating.

Risk warning: asset quality is affected by a decline in the economy that exceeds expectations, and credit risk is concentrated

The translation is provided by third-party software.


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