Hangzhou Bank (600926) 3 quarterly report detailed interpretation: beautiful performance, asset quality continues to improve sequentially

Highlights of the quarterly report: 1. Rising volume and price drove net interest income to +16 from the previous quarter.

2%, interest-earning assets +3.

At 7%, the annualized net interest margin in a single quarter at the time of the calculation was up 20bp to 1 from the previous quarter.

70% comes from the joint contribution of the asset and liability side. The asset side is mainly the high-yield retail credit contribution, while the liability side is the active resistance to cash income.

2. The middle income has performed well, and the net fee income is more than two years.

5%, the previous growth rate was broader in the second quarter. It is expected 深圳spa会所 that the agency sales program fee in the third quarter will still have some support for the company’s income. At the same time, the growth of business such as bond underwriting and guarantee commitments will also drive revenue growth.

3. The asset quality continued to improve month-on-month, and the non-performing ratio dropped 3bp to 1 month-on-month.

35%, meanwhile, the net generation ratio of annualized non-performing in a single season is both lower than the bottom of the chain to zero.

43 mean level.

Provisioning ability is also at a better level.

4. Core Tier 1 capital adequacy ratio increased.

The company’s non-public issuance of A shares has been approved by the accredited China Banking Regulatory Commission, and the static measurement of the company’s core tier 1 capital adequacy ratio will be increased to 9.

22%, an increase of 1 earlier.

13%.

Insufficient quarterly reports: 1. The growth rate of deposits was weaker than the previous quarter, but the degree of current accounts was improved.

Investment suggestion: company 19E 20E PB 0.

86X / 0.

77X; PE 8.

15X / 6.

85X (City Commercial Bank PB 1.

02X / 0.

91X; PE 8.

78X / 7.

82X), the company adjusted its own customer base structure, focusing on supporting private enterprises and technological innovation, personal business small and micro loans, science and technology financial characteristics.

Through the optimization and adjustment of the asset structure, the performance has maintained a stable and high growth, the asset quality has continued to improve, and the existing incremental replacement is recommended. Active attention is recommended.

Risk warning: the macro economy is facing downward pressure, the company’s deposit competition is under pressure, and performance management is less than expected.

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