China CITIC Bank (601998) detailed interpretation of the 2019 first quarter report: high performance and increased revenue once + 20%

China CITIC Bank (601998) detailed interpretation of the 2019 first quarter report: high performance and increased revenue once + 20%

Highlights of the investment quarterly highlights: 1st quarter and 1st quarter results are dazzling: the first quarter revenue and PPOP achieved the highest growth rate in the calendar year 2015, 20% / 24% per year, and the net profit growth rate also widened earlier than the fourth quarter.

2. The growth rate of the middle income is dazzling, with a high increase of 47 for many years under a low base.

5%.

3. The expenses are well controlled, and the business and management expenses are 8% per 深圳SPA会所 year.

Insufficient quarterly reports: 1, spreads were dragged down by 4bp from the asset-side yield.

2. The net generation of annualized badness in a single season has increased more than +1.

1% to 2.

04%.

The first quarter revenue and PPOP achieved the highest growth rate before 2015, and the growth rate of net profit also widened earlier than the fourth quarter.

1Q18-1Q19 revenue, PPOP, net profit attributable to mother or growth rate were 4 respectively.

9% / 5.

9% / 5.

3% / 5.

2% / 19.

6%, 2.

2% / 5.

5% / 4.

1% / 4.

2% / 24.

1%, 6.

8% / 7.

1% / 5.

9% / 4.

6% / 8.

6%.

Performance growth in the first quarter of 19: The positive contribution performance factors are scale, interest spread, non-interest, cost, and performance.

The negative contribution factor is provision.

Taking a closer 深圳桑拿网 look at the changes in the contribution of each factor, the marginal contribution to performance has improved: 1. The scale has achieved higher growth.

2. Widening interest margins and increasing non-interest income meanwhile increase the positive contribution to performance.

3. Costs have turned into positive contributions.

3. The positive contribution of formaldehyde has been enhanced.

The decline in marginal contribution is that in the fourth quarter, the increase in provision and accrual strength increased the negative contribution of provision to performance.

Investment suggestion: The company 2018, 2019E PB 0.

76X / 0.

72X; PE 7.

11X / 6.

62X (Share Bank PB 0.

92X / 0.84X; PE 7.

49X / 7.

03X), the scale increased rapidly, the interest rate spread improved, and the mid-replacement and increase jointly driven the company’s high performance. The company has a good foundation for corporate customers and has a strong retail conversion force. It is recommended to pay active attention.

Risk warning: The economic growth exceeds expectations, and the company’s business advances less than expected.