Everbright Bank (601818) 2019 Interim Report Review: Pressure on Bad Deposits Grows Pressure

Everbright Bank (601818) 2019 Interim Report Review: Pressure on Bad Deposits Grows Pressure

Introduction to this report: The interim report slightly exceeded expectations, deposits continued to grow rapidly, and interest margins remained stable from the previous quarter, but asset quality was under pressure.

Maintain target price of 5.

12 yuan, corresponding to 19 years 0.

79 times PB, holding level.

Investment points: Investment advice: Interim report slightly exceeded market expectations.

Increase 19/20/21 net profit growth forecast to 10.

13% (+2.

77pc) / 9.

94% (+0.

10pc) / 8.

57% (new forecast), EPS0.

68 (-0.

01, due to the difference between actual value and forecast in 2018) / 0.

76 (+0.

00) / 0.

83 (new 四川耍耍网 forecast) yuan, BVPS6.

46/7.

15/7.

90 yuan, the current price corresponds to 5.

44/4.

86/4.

47 times PE, 0.

57/0.

52/0.

47 times PB.

Maintain target price of 5.

12 yuan, corresponding to 19 years 0.

79 times PB, holding level.

Performance overview: 19H1 return to net profit per mother +13.

1%, revenue +26.

6%, ROE (annualization) 12.

9%.

Defective rate 1.

57%, -2bp QoQ; provision coverage rate was 178%, -0QoQ.

7 only.

New understanding: optimization of defect structure and rapid growth of bad marginal pressure deposits.

Performance: 19H1 final deposits increased by 15% over the beginning of the year, and 4% higher than the final period in 19Q1.

The debt structure brought by the rapid growth of deposits has optimised the proportion of final deposits in total debt in 19H1.9 to 68.

6%, an increase of 72% for time deposits.

The interest margin is stable from the previous quarter.

The 19H1 spread (daily average) was flat at 2 MoM.

28%, the asset-side and debt-side interest rates fell simultaneously, in line with industry trends.

The interest rate on the resistance side is gradually reduced to the background of the asset side, and it is expected that the future net interest margin will slowly decline.

Badness is under pressure.

The late 19H1 NPL ratio was -2bp month-on-month, and the concern rate was 11-11bps from the end of 18 years, but the overdue rate was 18 + 23bps from the end of 18 years. The NPL ratio decreased, the average chain ratio rose, and asset quality was under pressure.

19Q2 nuclear sales increased, resulting in loan-to-loan ratio of -5bp.