Jiangyin Bank (002807): Non-performing loan ratio declines as asset growth picks up

Jiangyin Bank (002807): Non-performing loan ratio declines as asset growth picks up

Event: On the evening of August 1, 2019, Jiangyin Bank released its 2019 Interim Report, which achieved operating income of 16 in 2019H1.

470,000 yuan, an increase of 17 in ten years.

94%, net profit attributable to mother 4.

2.0 billion, a growth of 9 in ten years.

29%, net profit before provision 11.

41 trillion, a ten-year growth rate of 33.

61%.

Net interest margin 2.

36%, down 31BP from 2018, and the non-performing loan ratio was 1.

91%, down 24BP from 2018, and provision coverage ratio was 264.

93%, with a capital adequacy ratio of 15.

35%.

Opinion: The scale of deposits continues to expand and the growth rate of 西安耍耍网 assets rebounds.

2019H1 asset scale is 1253.

9.5 billion, an increase of 13 in ten years.

08%, the growth rate returned to more than 10%.

The rebound in asset growth benefited from the continued growth of the disadvantaged side, and personal deposits and time deposits have improved significantly, making positive contributions to interest-bearing compensation.

In the structure of assets and liabilities, personal loans continued to maintain a growth rate of more than 30%, the bills improved their impulse, and their proportion was further increased. NPL clearance was promoted, and the NPL ratio decreased.

2019H1 NPL ratio 1.

91%, down 31BP from 2018, down 17BP from 2019Q1, and the NPL balance was 12.

9.2 billion, down 63 million compared to 2018 and 57 million lower than 2019Q1, Asset quality has improved.

2019H1 provision coverage rate is 264.

93%, maintained at a high level.

Asset-side yields fell and net interest margin narrowed.

2019H1 net interest margin 2.

36%, a decrease of 31BP from 2018, and interest-earning asset yield 4

36%, a drop of 38BP from 2018, negative interest rate 2.

26%, a 6BP improvement from 2018, due to the decline in peer denial levels.

In the context of reducing the financing cost of the real economy, the yield on the asset side has fallen. Although the interest rate resistance has improved, the net interest margin has still narrowed.

Investment suggestion: The overall performance of Jiangyin Bank is in line with expectations, and the EPS for 2019-2021 is expected to be 0.

42/0.

47/0.

51 yuan, 2019-2021 PB is 0.

85X / 0.

79X / 0.

71X, PE for 2019-2021.

86X, 9.

87X, 8.93X.

The first coverage gives an “overweight” rating.

Risk Warning: The downturn in the macro economy will adversely affect the performance of banks.