China Construction Bank (601939) 2019 Interim Report Comment: Poor Operating Performance and Accelerated Clearing

China Construction Bank (601939) 2019 Interim Report Comment: Poor Operating Performance and Accelerated Clearing

China Construction Bank realized operating revenue of 361.5 billion yuan in the first half of the year, an annual increase of 6.

3%, of which net interest income is 2,504 ‰, an annual increase of 4.

At 6%, net profit attributable to mothers was 154.2 billion yuan, a year-on-year increase of 4.

9%.

Construction Bank’s net profit growth attributable to mothers in 19H1 was 4.

9% is higher than 4 of Q1.

2%, revenue improved spending-side growth and tax savings jointly promoted profit growth Q2 upward.

Looking at the first half of the year, the main driver of the company’s profit growth came from the growth of average daily interest-earning assets.

5%, fee income growth rate increased by 11.

1% and the derecognition of financial assets turned positive and increased by 3.8 billion.

The company’s cost-to-income ratio, credit cost and tax rate improved slightly from the same period last year.

Affected by the increase in the cost of deposits, the company’s NIM decreased by 7bps to 2 compared with the same period last year.

27.

Asset size Q2 grew slightly more than consolidated (6 compared to the same period last year).

9%), loans were relatively positive, peers contracted, and deposits increased slightly.

In terms of breakthroughs, the peers contracted 17% month-on-month in the second quarter, and loans rose +2 in the second quarter.

2% is relatively positive, of which retail Q2 has some strength.

This year, two-thirds of credit resources are tilted towards the public. The reduction of personal consumption loans in retail may be related to the company’s judgment on risk.

The growth rate of debt-side deposits accelerated to zero.

9%, but the annual growth is still positive, and 武汉夜网论坛 personal deposits are growing faster (9% year-on-year.

3%), but regularization continues.

In terms of pricing, the company’s 2019H1 spread is 2.

27, down 7bps and 4bps respectively compared to the first half of last year / year, and down 2bps compared to Q1 last year.

The NIM change was mainly caused by an increase of + 7bps on the asset side and + 14bps on both ends of the negative side.

Upward deposit costs (+ 21bps per year) remain the main source of pressure on debt costs.

In terms of income from intermediary business, except for financial advisory fees, clearing and clearing, the other sub-items basically maintained an alternating growth rate of 12% -18% . The nominal NPL ratio decreased slightly to 1.

43%, credit costs are stable (0.

99%), but the bad recognition and disposal speeded up, focusing on the subsequent growth of overdue loans.

The company’s NPL ratio at the end of last year was -3bsp, the provision coverage ratio was 218%, and the loan-to-loan ratio was flat at 3 in Q1.

12%, credit costs rose slightly to zero.

99%.

However, our estimated TTM bad generation rate, write-off rate, and overdue <90D loan growth rates all increased. At present, the provision coverage ratio and the provision ratio are always a buffer cushion, but credit costs are still closely related to new bad occurrences in the long run, and then we need to continue to observe the marginal changes in asset quality. We slightly adjusted the company's EPS to 1 in 2019 and 2020. 06 yuan and 1. 12 yuan, the final net asset is expected to be 8 at the end of 2019. 04 yuan to 2019. 8.At 28 closing prices, the corresponding PEs for 2019 and 2020 are 6, respectively. 6 and 6. 2 times, corresponding to 0 at the end of 2019. 86 times. The company's large-to-business business is enough professional leadership in large banks, and its comprehensive operating performance has been remarkable in recent years. The company's strategic layout is leading, execution is rapid, and management efficiency is in a leading position among major banks. The current estimated level has a good margin of safety and is of high configuration value as a large bank. We maintain our prudent overweight rating on the company. Risk reminder: credit policy is gradually tightening, bad worse than expected