Construction Bank (601939) Semi-annual Report Review: Revenue Growth Contradicts, Asset Quality Maintained Stable
Event: On the evening of August 28, CCB disclosed its 19-year interim report.
1H19 achieved revenue of 3614.
700 million, a year-on-year increase of + 6.
3%; net profit attributable to mother is 1541.
90,000 yuan, +4 over the same period last year.
9%; annualized average ROE is 15.
62%, down by 1 every year.
04 per share; as of 1H19, the total assets are 24.
38 trillion yuan, an increase of 5% over the beginning of the year; non-performing loans increased by 1.
43%, a decrease of 3bp from the beginning of the year.
Comments: Q2 revenue growth significantly increased 1H19 revenue growth rate of 6.
3%, increased by 4.
Q2 revenue growth generally declined; 2 single quarter revenue YoY + 11.
2%, a significant speed increase (18Q1 / Q2 / Q3 / Q4 are 7 in order.
3% / 4.
7% / 5.
6% / 6.
1%), index and non-interest income increased significantly.
Attributable net profit growth rate 4.
9%, an increase of 7 basis points from the previous quarter-performance attributable disassembly, mainly due to scale expansion and non-interest income growth.
The income growth rate remained strong, and the net interest margin was under pressure.
Net income from program fees and commissions in 1H19 was 76.7 billion, a year-on-year increase of +11.
15%, accounting for 21% of revenue.
2%, mainly due to the rapid growth of bank card (credit card revenue) and electronic banking business, or the results of the advancement of its comprehensive retail strategy.
Net interest margin was lower.
1H19 net interest margin is 2.
27%, a year-on-year decrease of 7bp, mainly because the increase in the yield of interest-earning assets is less than the increase in the interest rate to resist the cost rate.
Affected by the lag in loan repricing, the loan yield increased by 15bp to 4 from 18 years.
49%, but bond investment and inter-bank business yields have dropped significantly, resulting in interest-earning asset yields that have increased by only 6bp to 3 compared to 18 years.
88%; the cost of deposits increased by 16bp to 1 from 18 years.
55%, because the proportion of deposits in interest-bearing debt is as high as 85%, resulting in interest-bearing reduction of the cost rate increased by 12bp to 1 from 18 years.
As the new lending interest rates have begun to fall, the bank’s deposit costs are likely to go up and down, and we expect that interest rate differentials will remain under pressure in the future.
The asset quality is stable, and the provision level is improved to stabilize the asset quality.
The non-performing loan ratio in 1H19 decreased by 3 bp to 1 from 1Q19.
43%; attention loans fell by 1bp to 2 from the end of 18 years.
8%; 1H19 overdue loan supplement 1.
43%, an increase of 16bp from the end of 18 years, but the proportion of loans overdue within 90 days only increased by 7bp, and the structure is healthier.
Non-performing loan deviation increased by 7 compared with the beginning of the year.
1 up to 67.
2%, the standard of bad identification is slightly loose; the net generation rate of bad is 1.
41%, an increase of 15bp in the early 18 years, the pressure of bad generation increased slightly.
1H19 loan-to-loan ratio of 3.
11%, 8杭州桑拿网bp earlier; provision coverage ratio of 218.
03%, an increase of nearly 10 units earlier, and increased risk resistance.
Investment suggestion: Leading comprehensive operation capabilities, large ROE construction banks, strong profitability, ROE level ranks first among the four major banks (as of 1Q19); 1H19 personal banking business profit of 85.9 billion, accounting for nearly 45%, is well deservedLarge retail bank; leading in breadth of industry coverage; owns CCB funds, CCB Life, CCB PICC, CCB Financial and other subsidiaries in the non-banking financial sector. CCB Financial is the first wealth management subsidiary established in China.
We maintain its 1x 19-year PB target estimate, corresponding to 8.
33 yuan / share, maintain “overweight” rating.
Risk warning: the quality of assets deteriorates badly; the cost of debt rises too quickly.