Industrial and Commercial Bank of China (601398) 2018 Annual Report Comments: Stability in Spreads and Poor Trends
Performance summary: The performance of ICBC’s 2018 annual report was in line with expectations.
The interest margin is relatively strong.
According to the announcement information, ICBC’s net interest margin for the whole year of 2018 remained at 2.
Break down the ICBC’s interest rate and structure changes of various interest-earning assets and interest-bearing debt in the first and second half of 2018. The structure of interest-generating assets has not changed much. In the second half of the year, the increase in loan interest rates by 14bp led to an increase in interest-generating asset yields by 8bp.As for interest-bearing debt, the cost of deposits rose by 6 basis points, and the proportion declined, while the cost of interbank debt and bonds issued increased significantly.
The advantages of deposits are obvious.
Regardless of ICBC’s corporate deposits or personal deposits, the rate of increase in interest rates must be significantly smaller than that of its peers.
In addition, ICBC ‘s absolute interest rate growth rate of corporate deposits and demand deposits increased in the first half of the second half.
Procedural fee income is driven by reduced bank card procedural fees and settlement and clearing procedural fees, but it is a drag on individuals and financial management, which is in line with industry trends.
Stable asset quality.
At present, ICBC’s asset quality is stabilizing and improving quarterly.
First, rely on macroeconomic stabilization, policy development and ICBC’s internal risk management, and actively adjust to achieve results.
However, at the same time, there are still some potential potential future factors in the macro economy. The potential impact of asset size is mainly on low-end manufacturing, and the risk release of liquid companies requires investment, but this part of ICBC’s loans account forIt has improved and declined.
The situation of stable asset quality in the future will not change.
Investment recommendation: Overweight-A investment rating, 6-month target price of 6.
We expect the company’s revenue growth to be 7 in 2019-2021.
75%, net profit growth rate was 4 respectively.
17%, given an Overweight-A investment rating, with a 6-month 深圳桑拿网 target price of 6.
57 yuan, equivalent to 0 in 2019.