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Bank of Ningbo (002142) 1H19 Results Express: Deposits and loans increase profitability and stability

Bank of Ningbo (002142) 1H19 Results Express: Deposits and loans increase profitability and stability

Bank of Ningbo (002142) 1H19 Results Express: Deposits and loans increase profitability and stability

Investment Highlights Summary of Financial Reports: 1. Profitability maintained at an excellent level of 20%: Bank of Ningbo’s net profit attributable to its mother continued to maintain a stable level of around 20%, and revenue and operating profit fell slightly over the growth rate, but remained at a high level.

2. High growth of loans and deposits: The negative growth rate of capital continued to widen, of which the net loan on the asset side maintained a high growth rate of 24%, and the net loan ratio increased to 37 from the previous quarter.

5%; deposits maintained a high growth, which led to a 北京桑拿洗浴保健 broader growth rate of resistance, but the proportion declined slightly.

3. Consistently outstanding asset quality: 0 non-performing rate.

78% month-on-month remained flat, maintaining a historical low for more than 13 years; the coverage rate increased slightly by 1.
.

82 up to 522.

5%.

  The growth rate of net profit attributable to mothers remains at 20%.

In the second quarter, the Bank of Ningbo’s revenue and operating profit increased slightly above the high growth rate. However, considering the high ratio of tax-free assets of Bank of Ningbo to interest-earning assets and the impact of the reduction factor on overall profitability, we use the net profit growth rate of the motherLook at the profitability of Bank of Ningbo.

In the 19th quarter, the 1-2 quarter revenue, operating profit, and parent net profit increased by 23 respectively.

4% / 19.

7%; 40.

5% / 31.

9%杭州桑拿; 20.

1% / 20%.

At the same time, the growth rate of operating expenses has been predicted: the operating expenses interval for 1Q19 and 1-2Q19 is 11 respectively.

5%, 10.

8%.

  Investment suggestion: Company 19E 20E PB 1.

54X / 1.

31X; PE 9.

39X / 7.

82X (City Commercial Bank PB1.

04X / 0.

92X; PE 8.

12X / 7.

19X). If all debt-to-equity swaps are made in 19, it is assumed that the net profit in 19 will increase by 19.

4%, the BPS after the conversion is 15.

19 yuan / share, the current sustainable corresponding 19-year PB is 1.

5 times.

The Bank of Ningbo has excellent asset quality and has undergone regular inspections. High profit and high growth continue. The company’s market mechanism is flexible and its consensus is excellent.

  Risk reminder: The macro economy is facing downward pressure, and performance management is less than expected.