Guiyang Bank (601997): Net interest income boosts revenue growth to maintain a high level; focus on asset quality performance

Guiyang Bank (601997): Net interest income boosts revenue growth to maintain a high level; focus on asset quality performance
The 3Q19 results were in line with our expectations of the company’s 3Q19 results: revenue 108.20,000 yuan, an increase of 18 in ten years.6%; net profit attributable to mother 43.1 ‰, an increase of 15 in ten years.3%, of which 3Q single quarter revenue growth 无锡桑拿网 rate of 31 in two years.6%, the ten-year growth rate of net profit attributable to mothers.6%.Performance is in line with expectations. The development trend has seen a significant increase from the previous quarter. Net interest income has driven revenue growth to remain high.Net interest income in the third quarter of 19 increased by 21 per year.6%, compared with 4. of the previous 1H19.3% increase significantly, the average daily net interest margin in the first three quarters2.38%, compared with 2 in the first half.27% increase of 11bp, we expect mainly from the asset and debt structure adjustment. The loan-to-deposit ratio was further increased to 60.88%, the deposit structure has been adjusted.Quarterly total assets / loans / deposits increased by 0 quarter-on-quarter in 3Q19.8% / 3.0% /-0.4%, an increase of 9 earlier.杭州桑拿网8% / 17.2% / 6.2%, the loan-to-deposit ratio increased further by 1 from the previous quarter.95ppt to 60.1%.Among loans, corporate loans increased by 3 quarter-on-quarter.1%, retail loans increased by 2.5%.Among the deposits, personal demand deposits increased by 0 month-on-month.3%, personal time deposits increased by 2 from the previous month.5%, the company’s demand deposits fell 8 month-on-month.0%, the company’s time deposits increased by 7.4%, other deposits fell 21.2%. Pay attention to the trend of leading asset quality indicators in annual reports.In the third quarter of 19, the bad rate decreased by 2bp to 1 from the previous quarter.48%, after adding back write-offs, the 3Q19 net bad generation rate was shortened / up by 88bp / 22bp to 2 from the previous quarter.91%.Provision coverage increased by 6 from the previous month.04ppt to 267.01%, concerned about leading asset quality indicators such as concerned loans and overdue loans disclosed in the annual report. The annualized ROAA rose by 0 in advance.07ppt to 0.12%, the annualized return on equity of the parent common stockholders fell by 0.41ppt to 18.83%; core tier 1 capital adequacy ratios decline by 0 each year.79ppt, an increase of 0 from the previous month.05ppt to 8.89%. Earnings forecasts and estimates remain unchanged.It currently corresponds to 0 in 2019/2020.7 times / 0.7 times P / B ratio.We maintain a neutral rating, but considering that the bank’s ROE is still relatively high, there is a switchover market in the fourth quarter and the target price is raised.4% to 11.04 yuan, corresponding to 0.8 times 2019 P / B ratio and 0.7 times 2020’s P / B ratio, 21 more recently included.1% upside. The quality of risk assets was lower than expected.