Bank of Shanghai (601229): Ten-Year Revenue Increases Retail Deepening Transformation

Event On April 27, the Bank of Shanghai announced its 2019 first quarter performance report, in which operating income doubled 42.

16%, net profit attributable to mothers increased by 14 per year.

12%.

Brief Comment 1. The revenue growth rate has increased significantly in the past six months, and the ROE has increased by 130 in the first quarter of 1919.

1.5 billion, an increase of 38 over the same period last year.

6 billion, an increase of 42.

16%, an increase of 30% over the first quarter of the previous quarter.

In the 30 quarters and the last 4 quarters, the growth rate of single-quarter operating income was higher than 30%, and revenue growth momentum was strong.

Achieve net profit of 50%.

19 ppm, an increase of 14 in ten years.

12%, the earlier single-quarter growth rate of 18Q1 increased 0.

60 averages, growth rate basically in line with expectations.

From the perspective of profit breakdown, net profit attributable to mothers increased by 6 in the first quarter.

$ 2.1 billion, mainly due to the increase in loan size and changes in accounting standards, of which revenue increased by 38.

600,000 yuan; operating expenses increase by 28 each year.

54 million, mainly due to an increase in impairment losses26.

1.3 billion; RMB increases by 3.

60 ppm; in total, changes in fair value and net income from exchange rate products increased by 23.

1.8 billion, mainly due to the implementation of the new accounting standards and 18-year statements have not been restated.

Profitability rises every year.

The annualized nominal average ROE in the first quarter was 13.

98%, an increase of 0 from the previous 18 years.

37 units.

EPS is 0.

46 yuan, an increase of 15 over the end of 18 years.

00%; BVPS at the end of the season was 13.

37 yuan, an increase of 3 from the end of 18 years.

40%.

2, █ Net income is growing by 14 per year.

97%, non-interest net income increased by 92 per year.

22% interest income net income 68 in the first quarter.

21 ppm, an increase of 14 over the same period last year.

97%, mainly due to the increase in loan size and the recovery of net interest margin.

Non-interest income net income 61.

95 ‰, an increase of 92 over the same period last year.

22%, in which the 南京桑拿论坛 net fee and commission income and investment income increased by ten.

63% and 20.

08%.Affected by the implementation of the new accounting standards in 19 years and the unrestatement of the 18-year statement, net income from changes in fair value increased by 30.

2.4 billion and the net loss of exchange rate products increases by 7 every year.

0.6 billion.

3. The quality of assets declined slightly, and the provision for provision was relatively stable.

The total amount of non-performing loans in the first quarter of 19 was 105.

5.2 billion, an increase of 8 over the end of last year.

5.4 billion; NPL ratio 1.

19%, a slight increase of 5bp compared to the end of the previous year. The non-performing ratio still maintains the level of the industry gap but shows a slight upward trend. We believe that Bank of Shanghai accelerates the retail transformation, adjusts the retail loan structure, and increases the proportion of personal consumer loans. Sometimes personal consumer loansIt may raise the overall non-performing rate, but the yield is also high, and the overall net interest income has increased significantly.

The provision and withdrawal strength remained relatively stable.

Provision for loan losses in the first quarter was 345.

64 ppm, an increase of 6 from the beginning of the year.

89%; provision covers 328.

80%, down 4 from the beginning of the year.

15 units; loan provision ratio 3.

90%, an earlier rise of 0.

10 units.

4. Core Tier 1 capital rose slightly, and capital adequacy declined slightly to the first quarter of 19, core Tier 1 capital adequacy ratio, Tier 1 capital accumulation ratio, and capital appreciation ratio were 9, respectively.

86%, 11.

22% and 12.

93%, a change of + 3bp, 0bp and -7bp from the beginning of the year.

Leverage 7.

22%, down 9bp from the end of the previous year.

5. Continue to promote retail transformation with a 27% increase in yield over the beginning of the year. Bank of Shanghai’s strategic positioning around the “top priority” of retail business, promoting the optimization of retail loan structure, strengthening the marketing of auto finance platforms, promoting personal housing loans, and strengthening pricing management; The quarterly AUM reached 5523.

23 ppm, an earlier increase of 6.

29%; return on retail assets increased by 0 from the beginning of the year.

27 single, retail intermediate businesses are growing by 30 per year.

83%.

6. Investment recommendations The first quarter of 2019’s operating results show that the growth rate of revenue has maintained rapid growth in the last 4 quarters, and the growth rate of net profit has accelerated compared with the same period last year; NIM and retail yields have continued to increase; asset quality and provisioning strength have remainedStable and continue to be at the forefront of the industry; through the continuous transformation of the Bank of Shanghai at the retail end, the strategic layout and target customers are very clear. Strong performance will bring about a rebound in net interest margin, increase in net income, and continuous improvement in ROE.Conducive to improving the overall estimate.

We forecast 19/20 operating income to grow by 18 per year.

71% / 19.

87%, net profit grows by 20 per year.

76% / 21.

35%, EPS is 2.

00/2.

42 yuan, PE is 6.

13/5.

05, PB is 0.

71/0.

61. Maintain BUY rating and maintain 6-month target price of 15 yuan.