Everbright Bank (601818) 2019 First Quarterly Report Review: ROE stabilizes
China Everbright Bank disclosed the first quarter of 2019 report China Everbright Bank disclosed that it realized net profit attributable to mothers of RMB 9.7 billion in the first quarter of 2019, an increase of more than 7%.
Deposits increased and interbank financing decreased. The company’s total assets grew at the end of the first quarter.
6%, a growth rate rebounded from the end of last year.
In the first quarter of this year, supplementary interest-earning assets amounted to US $ 116.8 billion, of which an additional US $ 86.6 billion, an increase of US $ 8.5 billion over the same period last year; securities investment dropped by US $ 14.1 billion, and interbank assets increased by US $ 55.7 billion.
In terms of interest-bearing debt, interest-bearing debt increased by 1,390 trillion in the first quarter, of which deposits increased by 2,702 trillion, and interbank financing decreased by 1,046 trillion.
Everbright Bank’s deposit growth has been relatively large in recent quarters, and interbank financing has been under pressure.
Comparable net interest margin rebounded The company’s average daily net interest margin of the first quarter was 2.
28%, an average increase of 56 ps per year compared to last year under a comparable caliber (China Everbright Bank has reclassified credit card installment income from accounting fees to index income since the first quarter of this year; when calculating the net interest rate of return, it no longer adds business income such as fund investmentBack to restore).
Increase in asset impairment losses From the data on the number of non-performing loans, the non-performing loan ratio at the end of the first quarter was 1.
59%, unchanged from the end of last year; provision coverage ratio at the end of the first quarter was 179%, an increase of 3 units from the end of last year.
We also noticed that the company’s provision for asset impairment losses in the first quarter of this year increased by 86 compared with the same period last year.
2%, so although the company’s provision coverage ratio rebounded slightly, we gradually generated bad replacements in a single quarter.
64%, still rising by 29bps every year.
Although the company has failed to repay loans that are overdue for more than 90 days last year, the 杭州桑拿 non-performing generation rate is still rising, showing that there is a certain pressure on its asset quality.
ROE stabilizes From the perspective of profitability, ROE11 in the first quarter.
9%, the same as the same period last year; the average equity multiplier in the first quarter, the ROA average was the same as the same period last year, showing that the company’s profitability gradually stabilized at a low level.
Investment recommendations The overall performance of China Everbright Bank was in line with expectations, maintaining the “overweight” rating.
Risks suggest that the continued weakening of macroeconomic expectations may adversely affect the quality of bank assets.