Original title: Institutional research favors listed city commercial bank Ningbo Bank as the most favored “sweet pastry”
When the A-share market has stabilized recently, institutions have also begun to conduct research on listed companies. Since May, banking stocks have been particularly watched by institutional investors.
A number of listed banks have recently disclosed record sheets of investor relations activities. Judging from the institutional survey list, Bank of Ningbo (002142) has received the largest number of institutional investors since May. On May 12, the investor conference call held by Bank of Ningbo attracted more than 200 investment institutions to participate, including not only E Fund, GF, Huaxia, China Europe and other leading public funds, but also Gao Yi, Jinglin, Danshuiquan and other well-known public funds. private sector.
The research report of Haitong Securities believes that the financial committee meeting in March pointed out that it is necessary to maintain the economic operation within a reasonable range and maintain the stable operation of the capital market. A series of measures on macroeconomic operation, monetary policy, real estate industry, etc. are put forward, which are conducive to the stability of the asset quality of the banking sector. In addition, the performance of the banking industry in the first quarter of 2021 and 2022 is good, and the banking sector is still expected to show good performance this year, especially the listed urban and rural commercial banks with excellent performance and close attention by institutions are worthy of attention.
Excellent operating indicators, maintaining industry-leading level
Due to their generally good performance and low valuation, bank stocks have been closely watched by research institutions recently. The first quarterly report disclosed recently shows that the differentiation of listed banks’ operating performance is still continuing. Some banks with strong investment ability and excellent asset quality include some banks. City commercial banks and rural commercial banks have high performance growth without exception.
According to statistics from Zheshang Securities, in the first quarter of this year, the net profit attributable to the parent company of listed banks increased by 8.6% year-on-year. From the perspective of different industries, the profit growth rate of various banks in the first quarter is from high to low: rural commercial banks, city commercial banks, joint-stock banks, and state-owned banks. In the first quarter of this year, the revenue growth rate of listed banks was 5.6% year-on-year. The revenue growth rate of various banks in the first quarter from high to low were city commercial banks, state-owned banks, rural commercial banks, and joint-stock banks.
Among them, Bank of Ningbo, as a relatively high-quality city commercial bank recognized by the market, has maintained a good level in the industry in many indicators. According to the 2022 first quarter performance report recently disclosed by Bank of Ningbo, various business indicators have maintained high growth. According to the first quarterly report, the bank achieved a net profit of 5.720 billion yuan attributable to shareholders of the parent company in the first quarter, a year-on-year increase of 20.80%; its operating income was 15.263 billion yuan, a year-on-year increase of 15.40%.
According to public information, the main business of Bank of Ningbo is to absorb public deposits; issue short-term, medium-term and long-term loans; handle domestic settlement; handle bill discounting; issue financial bonds. The company’s main products are personal loans and advances, corporate loans and advances, discounted bills, personal deposits, corporate deposits, and inter-bank lending. The company has won honors such as the “Excellent Application Award of the Fintech Innovation Competition” and the “Most Potential Award of the Fintech Innovation Competition” by the China Foreign Exchange Trading Center in 2019.
Judging from various operating indicators, Bank of Ningbo is at an excellent level in the industry. As of the end of 2021, the total assets of Bank of Ningbo reached 2,015.607 billion yuan, an increase of 23.90% over the end of the previous year; various deposits were 1,052.887 billion yuan, an increase of 13.80% over the end of the previous year; various loans were 862.709 billion yuan, an increase of 25.45% over the end of the previous year; The income was 52.774 billion yuan, a year-on-year increase of 28.37%; the net profit attributable to the parent was 19.546 billion yuan, a year-on-year increase of 29.87%.
Promoting the “big retail” strategy is expected to become the dark horse of the industry
In addition to the steady growth of its main business and asset scale, as a leading city commercial bank, Bank of Ningbo has been actively expanding its various businesses in recent years, especially the most promising retail business. On May 6, Bank of Ningbo disclosed the announcement on the completion of the transfer of Huarong Xiaojin’s equity, stating that it has completed the relevant matters of this equity transfer and has held 70% of Huarong Xiaojin’s equity. The transfer of equity represents that Bank of Ningbo has officially won the gold consumption license. The large retail area will be further expanded, and its gold consumption company is also expected to become a dark horse in the industry.
It is understood that in recent years, Bank of Ningbo has performed particularly prominently in consumer finance. According to the business composition of Bank of Ningbo. As of the end of 2021, the company’s business achieved operating income of 18.304 billion yuan, a year-on-year increase of 25.84%; of which, the personal business achieved operating income of 19.385 billion yuan, a year-on-year increase of 25.25%; the capital business achieved operating income of 14.757 billion yuan, a year-on-year increase of 35.75%.
The personal loan business of Bank of Ningbo is divided into personal consumption loans, self-employed loans and personal housing loans. Among them, the loan balance of personal consumption loans in 2021 will be 219.847 billion yuan, accounting for 25.47% of the total loan scale, much higher than self-employed loans and personal housing loans. Taking retail loans as a reference, personal consumption loans accounted for 65.99% of retail loans. Based on the growth of personal consumption loans, self-employed loans and personal housing loans, Bank of Ningbo’s retail loan interest income in 2021 will gradually catch up with corporate loans, with a difference of only 1.512 billion.
It is precisely because of this that Bank of Ningbo continues to increase the promotion of its large-scale retail strategy. Industry insiders predict that with the continuous expansion of the overall retail finance business of Bank of Ningbo, the acquisition will be beneficial to Bank of Ningbo, mainly in two aspects. One is to increase the financial license reserve of Bank of Ningbo, which makes the comprehensive financial development of Bank of Ningbo go further. Second, the consumer finance license can be used nationwide. At present, Bank of Ningbo has established branches in 16 places including Shanghai, Beijing, Shenzhen, Hangzhou, etc., but it is still a regional city commercial bank. After obtaining the consumer finance license, it can carry out business nationwide, and its retail personal business may usher in more changes. Good development.
Some practitioners revealed that the goal of Ningyin Consumer Gold is to become the top five in the industry within two to three years. Judging from the existing strategic trend, Bank of Ningbo has transferred executives from the remote banking center, the core department of the Internet loan business, and with the support of funds and teams, as long as the parent bank’s support closely follows the pace of business expansion, Bank of Ningbo is expected to become a dark horse in the industry.
The development model has been recognized, and the future growth space is broad
Looking forward to the future development trend, many institutions see the growth potential of high-quality regional city commercial banks like Bank of Ningbo in 2022. In the recent institutional telephone survey, Bank of Ningbo also mainly responded to the company’s core competitiveness, business strategy, main measures of risk management, and how to serve small and micro enterprises.
Regarding the key points of its business strategy in 2022, Bank of Ningbo stated that the first is to focus on the transformation and upgrading of the business model and to dig deep into the business moat; Support and lead by science and technology; Fourth, adhere to the professional business philosophy and improve the business efficiency of employees and institutions.
Ping An Securities believes that judging from the annual reports and first quarter reports of listed banks, the fundamentals of the vast majority of listed banks remain stable. In the second quarter of 2022, with the efforts of the stabilizing growth policy, the industry will still be in the channel of negative expectations improvement. At present, the valuation level of the sector is at an absolute low level in history, and the margin of safety is sufficient. We are optimistic about the valuation recovery opportunity of the banking sector. Pay more attention to high-quality regional banks with obvious marginal improvement in fundamentals and better growth than their peers.
Galaxy Securities believes that despite the short-term disruption to economic data caused by the epidemic, the central government’s policy of stabilizing growth remains unchanged, boosting banks’ ability to provide credit and helping optimize asset quality, and small and medium-sized banks in some economically developed regions continue to benefit. At the same time, although the volatile adjustment of the capital market has caused short-term pressure on the bank’s agency sales business, the medium and long-term track value remains unchanged, and the transformation of the layout of listed banks is not reduced. Short-term valuation corrections provide relatively good buying opportunities.
The view of China Merchants Union Finance believes that among city commercial banks, the higher valuation of Bank of Ningbo reflects the market’s recognition of its development model, growth potential and room for growth. These excellent small and medium-sized banks are indeed faster in terms of service innovation and digital transformation, and their mechanisms are more flexible. Therefore, they are optimistic about their future development potential in the banking sector in the long run.Return to Sohu, see more
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