Bank of Communications (601328) 2019 Interim Report Review: Profitability Stabilizes

Bank of 重庆耍耍网 Communications disclosed in its 2019 Interim Report that Bank of Communications achieved net profit of 42.7 billion attributable to mothers in the first half of 2019, a long-term growth of 4


Profitability stabilized in the first half of the year and the average return ROE12.

6%, a decline of 0 per year.

2 units, annualized ROA0.

89%, flat for one year.

From the analysis of DuPont, the main characteristic is that the net interest margin has been extended and increased, but business and management fees / average assets and asset impairment losses / average assets have also increased, and the three have transformed each other.

Net interest margin improved, a slight decrease from the previous quarter. The average daily net interest margin of Bank of Communications was 1 in the first half of the year.

58%, with an annual increase of 17bps, of which the interest-earning asset yield exceeds 14bps to 4.

09%, mainly benefiting from rising yields on corporate and retail loans; falling credit costs fell by 4bps to 2.

61%, mainly due to the decrease in interbank financing costs, and the cost of deposits increased by 12bps each year.

Month-on-month, the net interest margin in the second quarter of the single quarter was 1.

57%, a slight decrease of 2bps from the first quarter.

Asset quality is stable NPL ratio at the end of the second quarter 1.

47%, unchanged from the end of the first quarter; the attention rate dropped by 13bps to 2 compared with the earlier period.

32%, the overdue rate dropped 2bps to 1 from the initial period.


In the first half of the year, the bad generation rate was 0.

82%, a significant decrease of 61bps compared to the same period last year, mainly due to disturbances caused by poorly advanced 90 days overdue in the same period last year. We observed a loan generation rate overdue for more than 90 days.

The provision coverage ratio at the end of the period remained stable at 174%.

The overall asset quality of the company is stable.

The cost-to-income ratio decreased slightly. 西安耍耍网 In the first half of the year, business and management fees increased by 15% every half year, much faster than the growth rate of assets, leading to a decline in business and management fees / average assets.

However, in terms of cost-to-income ratio, the company’s cost-to-income ratio in the first half of the year decreased slightly by zero compared to many years.

3 perfect to 27.

7%, if further factors are considered, the actual cost-income ratio has dropped by 2 percentage points.

Investment suggestion The company’s overall performance is solid, and we maintain its “overweight” rating.

Risks suggest that the continued weakening of macroeconomic indicators may adversely affect the quality of bank assets.