Shanghai Pudong Development Bank (600,000): Net interest margin rises to new heights

Shanghai Pudong Development Bank (600,000): Net interest margin rises to new heights

First, the event overview The company’s net profit attributable to its mother increased annually in the first three quarters.

90%, the growth rate is in line with expectations.

Annualized ROE 13 in the first three quarters.

76%, a year-on-year decrease of 21 basis points; the annualized added value ROA is 1.

00%, 5bp increase every year.

Second, the analysis and judgment are gradual and the single-quarter interest margin has risen slightly. The return on the asset side has improved. Our estimated cumulative net interest margin for the 无锡桑拿网 first three quarters is 2.

08%, a slight increase of 1bp from the first half.

Single quarter net interest margin in the third quarter 2.

09%, up 2bp from the previous quarter.

The increase in the single quarter net interest margin was mainly due to the contribution of the single quarter interest-earning asset yield, which increased by 8bp from the previous quarter.

Although the increase in corporate loans in the third quarter tilted toward bills, the slow growth in high-yield retail loans continued to boost asset-end earnings performance.

The cost rate of interest-bearing debt in the single quarter increased by 7bp from the previous quarter, which is mainly due to the impact of the third quarter on the loss of current demand deposits.

The non-performing rate hit a record low. The non-performing rate in a single quarter slowed down and the non-performing rate hit a new low. The non-performing rate at the end of the third quarter was 1.

76%, down 7bp from the previous quarter.

The ability to resist risks was enhanced, and the provision coverage ratio increased slightly by 2pct to 159% from the previous quarter.

The annualized single season bad generation rate dropped 63bp to 1 from the previous quarter.


The slowdown in the rate of non-performing generation and the breakdown of credit costs were the main contributors to profit growth in the third quarter.

Sufficient capital and increased asset growth The company successfully issued 300 trillion perpetual bonds in the third quarter. The core tier one capital adequacy ratio and capital adequacy ratio both reached record highs, reaching 10 respectively.

10% and 14.


The company completed the issuance of convertible bonds in October, and the initial issuance will continue to partially supplement Tier 1 capital.

How to use capital efficiently is the focus of the future.

At the end of the third quarter, the company’s asset growth had previously increased to 11.

52%, has returned to double-digit growth, and the subsequent increase in asset growth can be expected.

Third, the impact of investment recommended net interest margin on profits looks at the increase in years.

Because the net interest margin increased rapidly in the same period last year, the contribution of the third quarter interest margin to profits weakened.

The company has maintained steady growth in profits by reducing credit costs and increasing asset acceleration.

Because the NPL ratio is in a downward channel, and the asset speedup can be expected after capital replenishment, it is expected that the company’s profits can increase stability.

It is predicted that the growth rate of return to mother’s net profit in 2019-2021 will be 11 respectively.

9%, 14.

2%, 17.


The BVPS in 2020 is 18.

84 yuan, corresponding to 0.

68 times static PB.

Give the company a target PB of 0.

8-0.9 times, the target price 合肥夜网 range is 15.

July 16.

95 yuan, maintain the “cautious recommendation” level.

4. Risk Warning: Pay attention to the cost pressure of the defective end and the stability of asset quality