CCB (601939) Annual Report 2018 Review: Steady Growth and Significant Improvement in Capital Adequacy Ratio
Core points: 1.
The event company released its 2018 annual report.
Our Analysis and Judgment 1) PPOP exceeded growth by 7.
98%, solid performance in 2018, the company achieved operating income of 6588.
91 ppm, a five-year increase of 5.
99%; net profit attributable to mother 2546.
55 ppm, a five-year increase of 5.
11%; operating profit before provision (PPOP) 4595.
20,000 yuan, an increase of 7 in ten years.
98%; ROA is 1.
13%, basically the same as 2017, with a ROE of 14.
04%, reducing by 0 every year.
76 averages; basic EPS1.
00 yuan, an annual increase of 4.
On the whole, the company’s performance is basically stable.
2) Net interest margin widened by 10BP, and net interest income increased by 7 per year.
48% benefited from the moderate growth of interest-earning assets, expansion and reduction of standards, improvement in asset income and structural optimization. The company’s net interest margin widened and the index’s net income increased.
In 2018, the company’s net interest margin rose to 2.
31%, an increase of 10BP per year; net interest realized 4862.
78 ppm, a ten-year increase of 7.
In 2018, the company’s average interest-generating assets balance was 21.
25 trillion, an annual increase of 3.
In the environment of continuous and continuous reduction of the standard, the company adopted measures such as optimizing the asset-liability structure and strengthening asset-liability pricing management to improve the interest margin level. The interest-generating asset yield rose more than the interest paid to offset the increase in interest payment.
Asset structure budget, the average balance of corporate loans and advances in 201813.
07 trillion yuan, an annual increase of 5.
99%, accounting for 61% of interest-earning assets.
53%, increase by 1 every year.
Among them, personal retail loans accounted for 39%.
53%, an increase of 2.
Debt structure budget, the average balance of corporate deposits in 2018 was 16.
71 trillion, an annual increase of 4.
20%, accounting for interest-bearing 淡水桑拿网 denials, the average balance is as high as 84.
Among them, demand deposits accounted for 52.
89%, a year up 0.
The average value of 08 is maintained at a high level, and the cost advantage is significant.
Pricing management budget. In 2018, the average income of the company’s loan business increased by 4.
34%, up 16BP in one year.
Under the ranking, the average cost ratio of the deposit business is 1.
39%, only 6BP increase each year.
3) Intermediate business income has picked up quarter by quarter, and bank card and e-banking businesses have performed well in 2018.
13 ppm, a ten-year increase2.
02%; other non-interest income 495.
78 ppm, a decrease of 3 per year.
In terms of intermediate business, the growth rate of net fee and commission income picked up quarter by quarter.
In 2018, the company’s net fee and commission income was 1230.
35 ppm, a ten-year increase4.
45%, Q1-Q4 single season advance growth rate were -2.
16% / 6.
00% / 7.
65% / 9.
76%, showing a seasonal warming trend.
In terms of different industries, bank card and e-banking business revenues increased respectively.
35% and 98.
96%, which became the main factor for the increase in net fee and commission income; the wealth management product business income was affected by factors such as the implementation of new capital management regulations and the rise in the issuance cost of wealth management products, and the decline was 44.
Among other non-interest income, investment income increased significantly by 127.
52%, after the initial conversion of new financial instruments, the interest income from financial assets measured at fair value and whose changes are included in the current profit and loss is reclassified to investment income items.
4) The stability of asset quality is good, and the capital adequacy ratio has been further improved. The company’s asset quality has remained basically stable.
As of the end of 2018, the balance of non-performing loans was 2008.
810,000 yuan, an increase of 85 over 2017.
90 ppm; NPL ratio 1.
46%, a decrease of 0 from 2017.
03 shareholders; attention-oriented loans accounted for 2.
81%, a decrease of 0 from 2017.
02 single; NPL provision coverage rate was 208.
37%, an increase of 37 from 2017.
The company’s capital adequacy ratio has increased.
As of the end of 2018, the amount of CCB’s capital replenishment was 17.
19%, an increase of 1 from 2017.
69 levels, continue to maintain the leading level in the industry.
Among them, the core tier 1 capital adequacy ratio / tier 1 capital adequacy ratio were 13 respectively.
83% / 14.
42%, an increase of 0 over 2017.
During the reporting period, the company completed the issuance of 830 million U.S. dollars in regional secondary capital bonds, effectively supplementing capital strength, enhancing risk defense capabilities, and providing protection for future stable development.
Investment suggestion As one of the four major state-owned banks, the capital adequacy ratio is leading the industry; the asset-side structure has continued to optimize, the retail share has increased, and the housing finance business has obvious advantages; the debt-side deposit ratio exceeds 80%, and the cost advantage is outstanding;With the development strategy of fintech, we will continue to improve our business competitiveness, and we can expect continued steady growth in our future performance.
The company is currently estimated to be at a historically low level and the cost-effective ratio is relatively high.
Based on the company’s fundamentals and sustainable resilience, we give a “recommended” rating and forecast EPS1 for 2019-2020.
10 yuan, corresponding to the current expected PE 6.
50X / 6.
Risks indicate the risk of accelerated asset growth due to the accelerated economic growth.