Depth * Corporate * Jiangsu Bank (600919): Revenue growth is bright and provision is significantly increased
Judging from the industry’s disclosed results, the Bank of Jiangsu ranked first in revenue growth and performed well.
The company’s asset quality is stable and its risk resilience has further increased.
In 2019, the Bank of Jiangsu’s capital negative profit and loss structure was adjusted and optimized, and the average net interest income and investment income maintained rapid growth, driving rapid revenue growth.
Maintain the company’s overweight rating.
The main points of the official rating are that the revenue growth rate is bright, and the profit keeps increasing rapidly. In 2019, the operating income of Bank of Jiangsu will further increase.
7%, more than we expected.
The absolute growth rate of the company’s revenue is a new high after listing, continuing the first three quarters (+27.
4%) rapid growth 合肥夜网 momentum, the growth rate is expected to be among the top of listed banks.
Except for the low base in the same period of the year, the rapid growth of revenue is estimated to be mainly due to the company’s active adjustment of its capital structure in 19 years. Net interest income and investment income have continued to increase rapidly.
The company’s net profit in 2019 increased by 11 in ten years.
9%, slightly narrower than the first three quarters3.
With 92 averages, the lower profit growth rate was mainly due to the increase in the provision of accruals.
The scale has grown steadily, and the quality of assets has remained stable. By the end of 2019, the total assets of Bank of Jiangsu increased by 7 compared with the previous quarter.
07%, the growth rate of the company’s scale slightly in the fourth quarter.
In terms of asset quality, the company’s non-performing assets1.
38%, a drop of 1BP from the previous month, and the non-performing rate is generally the lowest in the industry.
At the same time, the company’s provisioning level has improved significantly, and the provision coverage ratio increased by 7 from the previous quarter.
7 up to 232.
8%, the ability to resist risks is further enhanced.
It is estimated that we maintain Bank of Jiangsu EPS 1 in 2020/21.
The forecast of 68 yuan corresponds to a net profit growth rate of 14.
5% / 11.
7%, currently corresponding to a net subsidy of 2020/21.
59x, corresponding to a P / E ratio of 4.
23x, maintaining the overweight rating.
The main risks facing ratings The economic downturn has caused asset quality to deteriorate more than expected.