CITIC Bank (601998) Third Quarterly Report Review: Q3 Performance Increases Stable Asset Quality
In Q3 revenue, the growth rate of net profit attributable to mothers accelerated.
CITIC Bank maintained double-digit profit growth in the first three quarters, with a growth rate of 10.
7%, of which Q3 performance growth margins accelerated-Q3 single quarter revenue, net profit increased by 22 year by year.
3%, a growth rate of +11 over the second quarter.
6pct, + 1pct.
The total asset size has grown steadily, and the asset structure has been further optimized.
Restructuring the asset side, the first three quarters benefited from a reduction in the reserve ratio and further optimization of the asset structure.
Breaking down the debt end, Q3 deposit growth and restructuring, and interbank debt replacement certificates of deposits increased: Q3 deposits remained flat month-on-month, and bonds fell 6 month-on-month.
2%, interbank risk experienced two quarters of compression and resumed growth (QoQ + 6).
3%) to the same period last year.
Widening interest margins have led interest rate income to maintain double-digit growth, and non-interest growth has been equally bright.
The annualized net interest margin interval / ring ratio at the end of the first three quarters of the period is + 7bps and + 2bps respectively, which drives a +13 increase in net interest income.
In the non-interest area, bank cards and agency fees increased, and middle income continued to maintain strong growth. At the same time, other non-interest rates dragged down, which together led to high performance growth.
The nominal non-performing rate has remained stable, and provisions have grown significantly.
The company’s Q3 NPL amount was +2 billion, and the nominal NPL ratio was consistent with Q1 and Q2, and was stable at 1.
72% level, but 5bps down from the early stage.
The company accrued 21.1 billion impairment losses in the quarter, with a credit cost of zero.
56%, provision coverage ratio, provisioning loan increased by 16bps, 10pcts to 3 compared to Q2.
Although the nominal non-performing rate remains stable, our estimated net bad generation rate (TTM) is + 10bps to 1.
36%, the follow-up focus on the marginal changes in the net generation rate of bad.
At present, the company’s capital adequacy ratio and core tier 1 capital adequacy ratio have reached 11 respectively.
82% and 8.
76%, -44bps and + 18bps respectively changed from the previous second quarter.
At the beginning of the year, the issuance of 40 billion convertible 南京桑拿网 bonds was completed, providing a supplementary foundation for medium and long-term capital.
We adjusted the company’s EPS to 0 in 2019 and 2020.
98 yuan and 1.
07 yuan, the final net asset is expected to be 9 at the end of 2019.
37 yuan to 2019.
At the closing price of 17, the corresponding PE for 2019 and 2020 is 6, respectively.
1 and 5.
6 times, corresponding to 0 at the end of 2019.
During the year, the company’s transformation towards a lighter-weight, lighter-asset, and lighter-weight business model continued to advance. Credit card and asset management businesses have certain first-mover advantages.While maintaining the strength of disposal of coaxial bad write-offs, the company’s provisions continue to increase, and the downward pressure on impairment charges will provide a sufficient safety pad for the stability of profits during the transformation and development process.
We maintain our prudent overweight rating on the company.
Risk warning: Asset quality fluctuates more than expected, and scale growth is less than expected