Ping An Bank (000001): Retail focus breaks through private banking
Retail transformation + refinement of the public, maintaining the “buy” rating company March 7, antique 2018 annual results conference and retail open day.
Ping An Bank’s retail transformation strategy has continued to advance, and we have decided to make our business more refined and stronger in 2019. We believe it will be conducive to further improving the quality and efficiency of bank operations.
We predict that the company’s net profit attributable to mothers will increase by 10 in 2019-2021.
45% / 12.
41% / 14.
92%, earnings per share 1.
06 yuan with a target price of 15.
12 yuan, maintain “Buy” rating.
In 2019, we decided to strengthen our efforts in the public sector and realize further improvement. Ping An Bank continued to reduce the size of public loans in 2017-2018, with the goal of saving capital to support retail transformation.
In 2019, Ping An Bank will begin to make efforts to conduct business with the public, but not by expanding the table significantly, or even further refined.
The main measures include: 1) Technology finance.
Through the blockchain chain and the ecosystem, the business around the core enterprises is developed.
2) Transaction Bank.
Focus on serving the government, helping the government to do cash management or transaction business.
The purpose of the development of the company is to find assets for the group’s insurance capital and private banks, and to assume the engine role of the multi-faceted needs of corporate customers.
Focusing on corporate business is not only conducive to stable deposition, but also to a stronger synergy with Ping An Group.
Private banking and wealth management business became strategic breakthroughs in retail transformation. In October 2018, the Ping An Trust direct sales team transferred to Ping An Bank.
In the past, the competitiveness of Ping An Bank’s private banks differed from the main competition. The addition of the Ping An Trust Wealth Team significantly enhanced the overall strength of Ping An Bank’s private banking business.
The press conference noted that the development of private banks is a key task in the second phase of the retail transition. At present, the integration of Ping An 成都桑拿网 Trust is progressing rapidly.
First, product capabilities are enhanced, and product team strengths are expanded.
Second, the whole process is systematic and the efficiency is greatly improved.
Third, investment consulting + front-line service personnel + system empowerment have greatly improved service capabilities.
Fourth, comprehensive financial capabilities have been strengthened.
Fifth, the optimization of customer rights, including medical health, beauty, golf, etc.
The annual report shows that at the end of 2018, 30,000 private customers met the standard, +27 per year.
7%, higher than the number of retail customers 20.
The risk mitigation is obvious. At the end of 2018, the transitional financial technology company’s non-performing loan deviation of Ping An Bank was 97%, and it was replaced 合肥夜网 within 100% for the first time since 2011. The pressure on the stock credit risk was eased.
The conference predicts that the current level of provision coverage is relatively high (155% at the end of 2018), and the company will continue to focus on improving its ability to resist risks.
In terms of retail business risks, credit card non-performing loan ratios before and after write-offs are at the industry level (as shown in the annual report).
There are two major plans for Ping An Bank’s fintech transformation. One is to embed financial services in the scene of technology companies and serve and acquire customers with an open attitude; the other is to absorb the capabilities of technology companies to banks and provide customers with betterservice.
Fintech transformation is conducive to cost savings and improve risk management capabilities.
The benchmark for transformation will start again, and we maintain the “Buy” rating. We maintain our original forecast, and the net profit growth rate attributable to mothers in 2019-2021 will be 10.
45% / 12.
41% / 14.
06 yuan, 2019 BVPS14.
27 yuan, which currently corresponds to 0.
The company’s retail has gradually achieved significant strength, and the pressure on asset quality burden has been reduced. We maintain January 2019.
2x PB forecast, maintain target price of 15.
Risk Warning: The economic downturn exceeds expectations, and asset quality deteriorates more than expected.