Industrial Bank (601166) Interim Report 2019: Net interest margin performance is better than the industry
Industrial Bank disclosed in its 2019 Interim Report that Industrial Bank achieved net profit attributable to its mother of US $ 35.9 billion in the first half of 2018, an increase of 6 per year.
The decline in equity multiplier affects ROE. ROA is basically stable. The average ROE in the first half of the year decreased by 0.
Six averages, but ROA rose slightly over 0.
01 average, basically stable.
From DuPont’s analysis, there are two major factors that have changed significantly: first, the net interest rate / average asset has increased significantly, and second, the asset impairment loss / average asset has increased significantly.
The net interest margin improved significantly in the short term, and the average daily net interest margin in the first half of the year after excluding the financial leasing business was basically stable1.
60%, previously expected to increase by 18bps, mainly due to the improvement in interbank financing costs, related to the decline in money market interest rates and its special compensation structure.
On a month-on-month basis, the average daily net interest margin is 佛山桑拿网 basically stable, and the first half of this year is only 2bps higher than the second half of last year.
This is also close to the industry trend, but slightly better than other banks.
The asset quality trend is consistent with the industry. The NPL ratio at the end of the second quarter decreased by 1bp to 1 from the end of the first quarter.
56%, the attention rate decreased by 24bps to 1.
88%, the overdue rate decreased slightly by 2bps to 2 compared with the initial period.
00%, non-performing loans overdue for more than 90 days decreased by 6 from the initial replacement to 121%.
The remaining indicators performed better, but the bad generation rate increased by 52bps to 1 compared with the same period last year.
57%, showing an increase in adverse marginal production pressure, the trend is consistent with the overall trend of the industry.
In addition, we noticed that the company’s asset impairment losses increased at least, mainly due to the increase in loan impairment losses.
We estimate that the company’s provision for loan losses in the current period / increased non-performing loans in the current period decreased by 10 percentage points compared with the same period last year, so we believe that the increase in loan impairment losses was mainly due to the increase in non-performing generation rate.
Investment recommendation The overall performance of the company is in line with expectations, and we still maintain the company’s “overweight” rating.
Risks suggest that the continued weakening of macroeconomic indicators may adversely affect the quality of bank assets.