Bank of Nanjing (601009): Improved profitability, improved capital adequacy ratio
2018 Performance Bulletin The 10-year growth rate of net profit attributable to mothers in 2018 14
5%, the fourth quarter of 18 single-quarter growth rate of 11.
7%; annual revenue growth rate of 10 in ten years.
3% in the fourth quarter of 18 in the single quarter half-year growth rate of 15.
ROE increased 无锡夜网 by 0 for the first time.
06ppt to 17.
The performance was in line with expectations, maintaining the Bank of Nanjing’s top pick.
Key points of attention The 2018 revenue growth rate changed from negative to positive earlier than in 2017, mainly due to the improvement in the interest rate difference from the previous quarter, while the scale expansion was stable.
4Q18 analog net interest margin increased by 16bp / 13bp to 2 per second / loop.
35% is expected to come mainly from the decline in interest rates in the capital market and the improvement in debt costs.
At the end of the year, total assets increased by 8 quarter-on-quarter.
3% / 1.
6%, year-on-year growth rate increased by 2 compared with the end of 3Q.
Asset quality is sound.
Defective rate was flat at 0.
89%, up 3bp per year.
The 北京桑拿洗浴保健 provision coverage ratio was basically flat, up 20ppt to 462.
High provisioning coverage provides a safe pad for maintaining double-digit profit growth in the future.
Profitability improved and capital adequacy ratio improved.
Core Tier 1 capital adequacy ratio decreased / QoQ increased.
34ppt to 8.
55%, ROAE increased by 0 in advance.
06ppt to 17.
In the absence of external capital replenishment, given the improved profitability, retained earnings can still support the bank’s scale expansion of about 10%, while the core tier 1 capital adequacy ratio has no obvious replacement.
Estimates and recommendations Adjust profit forecast according to the performance report and slightly modify 2018 / 19e net profit -0.
7 / + 0.
6% to 111/126 billion.
The company is currently trading at 0.
8x 2019 / 20e P / B, keeping target price unchanged, corresponding to 1.
01x 2019 / 20e P / B, 31% growth space, maintaining recommended level. Risk macro fluctuations exceeded expectations.