Bank of Shanghai (601229): Net interest margin significantly improves retail transformation

Event: On the evening of April 19, Bank of 夜来香体验网 Shanghai disclosed its 2018 annual report.

Net profit attributable to mother was 180 in 2018.

3.4 billion, a year-on-year increase of +17.

65%; revenue 438.

RMB 880,000, a year-on-year increase of +32.

49%; ROA is 0.

94%, an increase of 8 bp per year.

At the end of December, the non-performing loan ratio was 1.

14%, asset budget reached 2.

03 trillion, a year-on-year increase of +12.

17%.

Opinion: Improve the net interest margin, improve the structure of the original asset allocation, optimize the yield of interest-earning assets, and the sharp rise in interest rates is due to increased consumption and the release of operating credit.

At the end of 18 years, the net interest margin was 1.

73%, an increase of 0 every year.

The 51 singles are mainly due to the increase in the rate of return on interest-earning assets (increased by 0 as early as 17 years).

53 average values) is greater than the interest rate increase rate (increased by 0 in the previous 17 years).

1 average).

At the end of 18, the loan budget was 85.07 million yuan, an increase of 28 throughout the year.

11%, of which consumer and operating loans increased by 104 in ten years.

43%; asset-side loans accounted for 41.

95%, an increase of 5 per year.

22 units.

Net interest margin may still have room for improvement.

The Bank of Shanghai has obvious regional economic advantages. In 18 years, Shanghai ‘s total GDP ranked first in domestic cities, and residents ‘consumption ideas were ahead of time.Net interest margin provides some upside.

The cost-to-income ratio performed well, and retail conversion vigorously promoted the decline in cost-to-income ratio.

The 18-year cost-income ratio was 20.

52%, a decrease of 3 from 17 years.

95 single, mainly due to revenue growth (YoY + 32.

49%) higher than the growth rate of business and management fees (+11 YoY).

12%).

The retail transformation has been vigorously promoted.

The ratio of retail loans to total loans at the end of 18 was 32.

54%, an increase of 6 a year.

The 33 singles are mainly the increase bandwidth of personal consumption loans.

The balance of retail loans at the end of 18 was 2,768.

2.1 billion yuan, an increase of 59 from the end of the previous year.

05%, of which 68% are consumer loans.

07%, an increase of 14.
01 averages.

The interest rates on non-performing and interest-oriented loans fell, but the quality of assets that rose overdue remained stable.

At the end of December, the non-performing loan ratio was 1.

14%, quarter-on-quarter rose 6BP, exceeding the decline of 1BP; remained relatively stable.

Focus on loan financing 1.

86%, a decrease of 22bp from the end of 17 years.

Overdue loan rate at the end of 20181.

69%, an increase of 64 bp from the end of 17 years, mainly due to 67 trillion loans overdue within 90 days, accounting for 0%.

78%, an increase of 53 BP earlier, with slight concerns over asset quality.

Investment suggestion: The growth rate of Internet consumer loans is high. It is estimated that suppressing or alleviating the rapid growth of the Internet Bank ‘s interruption of Internet consumer loans is one of the main reasons for its performance improvement.

However, this also helps the market to assess its future asset quality, which has a certain suppression on estimates.

In view of its sufficient provisioning and economic stability, the effect of this suppression or improvement.

We predict that the Bank of Shanghai’s net profit growth rate for 2014/2014 will be 14.

5% / 12.

7%.

Goal evaluation is given 1.

1 19 PB, corresponding to the current target price of 15.

66 yuan / share (before 19 dividends and 10 shares were converted into 3 shares).

Risk warning: the quality of consumer assets deteriorates; the economic downturn exceeds expectations and the quality of corporate loans deteriorates.