China Merchants Bank (600036)： Asset and liability structure improved, net interest margin steadily increased
China Merchants Bank (600036): Asset and liability structure improved, net interest margin steadily increased
Recently, the company released the 2019 first quarter report.
Our Analysis and Judgment 1) The net profit attributable to mothers grows 11 per year.
32%, retail financial business contribution increased in the first quarter of 2019, the company achieved operating income of 687.
39 ppm, an increase of 12 in ten years.
14%; net profit attributable to mother 252.
40 ppm, an increase of 10 years.
32%; average average return on net assets reached 19.
45%, reducing by 0 every year.
52 averages; basic EPS is 1.
00 yuan, an annual increase of 11.
Overall, the company’s performance has achieved steady growth, and the value contribution of the retail financial business has continued to increase.
In the first quarter of 2019, the operating income of the parent company’s retail finance business was 345.
0.6 million yuan, an increase of 17 in ten years.
72%, accounting for 53 of the parent company’s operating income.
It is increased by 3 every year.
2) The improvement of the asset-liability structure and the reduction of reductions and exemptions promoted the steady increase in net interest margin. Benefiting from the improvement of the asset-liability structure and the inclusion of financial inclusion standards, the company’s net interest margin increased.
In the first quarter of 2019, the company’s net interest margin rose to 2.
72%, increasing by 0 every year.
17 singles, driving an increase in net interest income by 14 per year.
From the perspective of asset structure, the company’s assets are still dominated by loans and advances, and its retail business has obvious advantages, and its size and proportion continue to increase.
At the end of March 2019, corporate loans and advances4.
13 trillion yuan, an increase of 4 over the end of the previous year.
90%, accounting for 60% of total assets.
72%, up 2 from the end of 2018.
Among them, retail loans accounted for 54% of total loans.
61%, an increase of 3 from the end of 2018.
From the perspective of the debt structure, the proportion of deposits has increased, demand deposits have a relatively high proportion, and the cost advantage is significant.
In the first quarter of 2019, the proportion of deposits in total debt was 71.
16%, an increase of 0 from the end of 2018.
21 units. Among them, demand deposits accounted for 64% of total deposits.
3) Affected by investment income and exchange gain growth, non-interest net income increased by 8.
62% In the first quarter of 2019, the company achieved net non-interest income of 253.
70 ppm, a ten-year increase of 8.
Among them, net litigation fees and commission income were 191.
58 ppm, an increase of ten years.
25%; other net income 62.
120,000 yuan, an increase of 40 in ten years.
04%, mainly benefiting from the increase in investment income and exchange income.
In terms of net fee and commission income, the data disclosed by the parent company revealed that agency insurance income increased by 34 each year.
55%, mainly due to increased sales of non-payment products; agency trust plan income increased by 82%.
04%, basically lies in the growth in sales of fixed income products; agency fund income11.
1.1 billion, affected by the transformation of the system of legal responsibility for rights, a decrease of 55 per year.
In terms of other net income, investment income increased by 49 per 无锡桑拿网 year.
31%, mainly due to the increase in the profit and loss of bill spreads; net gains from changes in fair value decreased by 65.
62%, initially due to the decrease in the profit and loss of derivatives and trading financial assets.
4) The asset quality is stable and improving, and the company’s risk resistance is enhanced.
As of the end of March 2019, the company’s non-performing loan balance was 556.
4.5 billion, an increase of 3 from the end of last year.
81%; NPL ratio 1.
35%, a decrease of 0 from the end of the previous year.
01 single; 363 provision coverage ratio.
17%, an increase of 4 from the end of the previous year.
Investment suggestion: The company’s retail business maintains a leading position in the industry, with stable profitability, and ROE maintains the forefront 南京夜网 of the industry for a long time; the asset-liability structure continues to be optimized, the proportion of demand deposits is high, and the cost advantage is significant; the asset quality is stable and better, and the risk resistance capability is continuously enhanced; Actively promote strategic transformation, build a lightweight bank, and achieve dynamic and balanced development of “quality, efficiency, and scale”. The fintech application industry leads and differentiated competitive advantages are obvious.
Based on the company’s fundamentals and sustainable resilience, we give a “recommended” rating, EPS 3 for 2019-2020.
24 yuan, corresponding to 2019-2020 PE9.
34X / 8.
4. Risks indicate the risk of deterioration in asset quality.