Bank of Hangzhou (600926): Revenue increased sharply in retail development

Bank of Hangzhou (600926): Revenue increased sharply in retail development

Key points of investment:南京桑拿网 The deepened development of Hangzhou Bank ‘s retail business and the company ‘s distinctive business operations have not only brought rapid growth in loans, but also maintained a high level of fee and commission income growth.

The growth rate of Hangzhou Bank’s operating income in the first half of 2019 was 25.

73%, a growth rate of 0 lower than the first quarter.

91 units; net profit growth attributable to mother is 20.

22%, the growth rate rose by 0 compared with the first quarter.

97 units.

Consumption credit has grown at a rapid rate, and the number of bad loans has remained low.

The company continued to re-optimize the online credit and credit product “cock loan”, and the loan balance increased by 21 as early as the end of 18 years.

91% to 334.

28 billion.

At the same time, in the Hangzhou area, the housing loan center was optimized and upgraded, and the balance of personal housing mortgage loans increased by 11 compared with the end of 18 years.

19% to 623.

5.7 billion.

At the same time of rapid volume increase, the retail financial line maintained only 0.

Very low defect rate of 10%.

Credit card, wealth management business is on the way.

In addition to the rapid growth of consumer loans, the company also launched a “WE Wealth Management Platform” based on WeChat mini-programs, helping retail non-guaranteed wealth management product balances be higher than at the end of 18 years.

41% to 1881.

4.6 billion, retail AUM increased by 12 compared with the end of 18 years.

98% to 3117.

09 billion.

At the same time, LianMeiTuan commented that Zhejiang Unicom issued a joint credit card and launched the “Co-branded Card Online Subscription Platform”. Among them, the only Meituan Co-branded credit card has been issued from early April to the end of the second quarter of 2019.

06 thousand.

Specialization of the public, small standardization.

Focusing on key customer groups such as listed companies, listed companies, proposed companies, technology and cultural and creative enterprises, and privately-owned leading enterprises in developed regions, the company’s financial line loan balances were at the end of 18 years earlier11.

60% to 2313.

70 billion.

For small and micro businesses that have traditionally been considered to be more risky, the company focuses on the development of standardized and online products such as “cloud credit, boycott loans, tax loans, and cloud micro loans”, which are only available in Taizhou, which has a micro and micro cultural gene.Actively explore the mode of small credit loans.

Intermediate business income is growing by 37 per year.

41%.

It is mainly contributed by the growth of business of agency sales funds, bond underwriting, guarantees and commitments, financing consultants, and wealth management.

We believe that before the benchmark, the industry mainly relied on bank card fees to improve revenue. The growth of Hangzhou Bank ‘s revenue was of higher quality, and this was inseparable from the company ‘s continuous efforts to improve its operating capabilities.

For example, the company completed more than 50 functions reorganization and optimization of the 厦门夜网treasury management platform in the first half of the year, focusing on upgrading the two key product systems of “treasury engine” and “foreign exchange engine”.

We believe that this has a pulling effect on trade commitments such as guarantee commitments, settlement and clearing; and the increase in income from agency sales is inseparable from the company’s expenditure on wealth management.

Asset quality continued to improve.

NPL ratio 1.

38%, a decrease of 0 from the end of the previous year.

07 units; provision coverage 281.56%, an increase of 25 over the end of last year.

56 units; loan-to-loan ratio of 3.

89%, an increase of 0 from the end of the previous year.

18 units.

Among them, the NPL ratio of corporate loans decreased by 4BP to 1 from the end of 2018.

80%.

Obviously yes, the NPL ratio of the wholesale and retail industries and manufacturing loans with the highest credit risk in the past has been significantly lower than that of the end of 2018, and the manufacturing ratio has fallen from 6.

06% dropped to 4.

16%, wholesale and retail trade from 6.
.

05% dropped to 4.

53%.

The personal loan non-performing ratio also dropped by 15BP to zero compared with the end of 18 years.

62%, we believe that it is mainly the company’s online, standardized operation of small and micro businesses to reduce personal business loan risk investment recommendations.

The deepened development of Hangzhou Bank ‘s retail business and the company ‘s distinctive business operations not only brought rapid growth in loans, but also increased fees and commission income37.

41%, so it reached two years in the first half.

73% revenue growth, 20.

22% net profit growth.

At the same time, the NPL ratio at the end of 2Q19 decreased compared with the beginning of the year, and the provision coverage ratio increased significantly. The net interest margin in 1H19 increased by 6BP compared with last year.

We give 2019 a PB range of 1.

0-1.

1 times, corresponding to a reasonable value interval of 10.

11-11.

12 yuan (corresponding to 8 in 2019 PE.

73-9.

60 times, the corresponding PE company is 6.

48 times), give the “preliminary market” rating.

Risk warning: the company’s ability to repay its debts has declined, and the quality of its assets has deteriorated severely; major changes have occurred in financial regulatory policies.