China Construction Bank (601939) Interim Review: Steady performance growth and decentralization of new corporate loans


China Construction Bank (601939) Interim Review: Steady performance growth and decentralization of new corporate loans

Event Highlights of 2019 Interim Results announced by Construction Bank on August 29, 2019: Pre-provision profit increase and growth7.

2%, the expected growth of risk assets is 6 per year.

63%: In the first half of 2019, operating income will increase by 6 per year.

08%, realizing pre-provision profit growth of 7 per year.

2%, realizing the return to net profit attributable to mothers4.

87%.

The balance of deposits increased by 7 from the beginning of the year.

36%, loan budget increased by 4 from the beginning.

72%, with expected risk assets growing by 6 per year.

63%.

  In the first half of the year, NIM has improved compared to 2018: it is expected that the cost of deposits on the debt side will rise significantly, and it has risen to 1 at the end of June 2019.
.

55%, an increase of 16BP from the end of 2018, of which personal time deposits increased by 38BP from the end of 2南京桑拿网018.

Although the loan yield on the asset side has continued to rise, the yield on bond investments has improved, so the overall yield on the asset side has remained basically stable.

  The main contribution of new loans came from the corporate business: from the perspective of the structure of the new credit, the new corporate and retail loans accounted for 63% and 37% of new loans.

The main industries for the increase of corporate loans are divided into parts; the increase of retail loans is mainly concentrated on personal housing mortgage loans.

  Net fee income is increasing by 11 per year.

15%: According to the breakdown of the data, the bank card fees accounted for a relatively high, the average income of electronic banking, agency business achieved higher growth, thereby driving the rapid growth of fee income.

However, 佛山桑拿网 in the second quarter, some revenue growth began to gradually.

  Total asset quality remained stable: The non-performing loan ratio decreased by 3 BP from the beginning of the year to 1.

43%.

Annual value of bad net generation rate is 1.

42%, up 16BP from the end of last year.

Provision coverage ratio increased by 9 from the beginning of the year.

66%, reaching 217%.

By itemized data, the non-performing rate of credit cards and consumer loans has increased.

  Earnings forecast and investment advice: The overall performance of China Construction Bank maintained steady growth, and asset quality continued to improve.

The cost of deposits on the debt side has risen rapidly, and the company’s current PB estimate for 2019-2020 is zero.

84 times, 0.

76 times, maintaining the “overweight” level.

  Risk factors: The economic recession is better than expected; the market decline presents systemic risks.