Banking Industry: National Joint-stock Banks Chapter of the Banking Industry’s 2021 Annual Report and 2022 Quarterly Report Performance Summary_ Oriental Fortune Net

Investing points:

2021 ShareholdingbankperformanceRelease, differentiation continues to expand. Profit growth in 2021 will be higher than the year-on-year growth rate of revenue, 9 joint-stock companiesbankPerformance divergence increased. In 2021, due to the decline in net interest margin and the increase in scale and volume, interest income has grown steadily, non-interest income has benefited from the high popularity of the secondary market, and the annual performance has grown considerably.China Merchants Bank、Industrial BankExcellent performance on the non-interest income side,Ping An BankOn the other hand, it has made great achievements in the dimension of interest income and interest spread improvement, and the asset quality has been improved.Industrial BankIncrease cost input and enhance asset-light capability.

The performance in the first quarter of 2022 will slow down, and the differentiation will continue. Q1 2022, joint-stock systembankThe overall performance was slightly lower than expected, and the performance differentiation continued to widen.Ping An Bankrevenue, return to mothernet profitYear-on-year high growth, enhanced flexibility,Industrial BankThe growth rate of performance has remained stable and progressed, and it is expected to strengthen investment in the future.China Merchants BankThe overall performance is stable. Affected by the changes in the management’s sentiment, the stock price has fallen significantly during the period. In the future, it is expected that the performance will lead to a rebound in the valuation. The above-mentioned three banks have stable net interest margin control in the first quarter.Other joint-stock banks except for the first quarterZheshang Bank、CITIC BankIn addition to the better performance, the other overall performance is slightly lower than expected. We believe that the operating effect will continue the trend of operating performance in 2021.

Strengthening the ability to make up for weaknesses has become an important indicator for future differentiation.China Merchants Bank,Industrial Bank,Ping An BankThey have their own advantages and their own development priorities, but they all share a consensus on technology investment and retail transformation. The future valuation change path, we believe that the foothold of valuation lies in the asset manipulation ability and risk control ability of interest income, which can be evaluated by using the PB level (according to the mature market 0.5-0.6xpb to give an appropriate premium), and the light asset ability, we It is believed that it is more reasonable to refer to the PE level of Internet platform companies for valuation. Strengthening and complementing the weaknesses of the two businesses can effectively increase the valuation. We believe that Ping An Bank,China Merchants BankIt is worth looking forward to making efforts on the strengths of retail advantages. Industrial Bank builds technology force to complement its retail capabilities, which has an important support for the overall valuation improvement. Other joint-stock banks are also gradually improving their shortcomings and actively releasing energy, and the transformation of light assets has become an important “battlefield” for banks to compete for the winners of the banking industry in the future.

The second half of 2022 is approaching. Under the background of steady growth, policy flexibility is strong, and the more extreme the valuation compression, the greater the rebound.It is recommended to focus on Ping An Bank, which has strong asset-light operation capabilities, and Industrial Bank, which is led by technology acceleration and is undervalued.China Merchants Bank。

Risk warning: epidemic spread risk, international environment deterioration risk, credit risk.

(Article source: Huafusecurities）

Article source: Huafu Securities

Responsible editor: 436

Original title: Banking Industry: National Joint-stock Banks Chapter of Banking Industry 2021 Annual Report and 2022 1 Quarterly Report Performance Overview