Main Underwriter report: Everbright Bank will welcome profit acceleration

Cao Jinling Everbright Bank IPO Road Shanghai Station yesterday, CICC gave 3.52 yuan per share of the price of ~4.08 yuan. CICC believes that, based on the 12.7%~15.4% Roe and the 12.04% equity capital cost Assumption, Everbright Bank's a-share market reasonable City net rate range is 1.81~2.10 times; According to the bank's 2010 net assets, the reasonable value range is 3.52~4.08 yuan, corresponding to the 10 share price/ The profit before the reserve is 7.8~8.8 times, and the 10 p/E ratio is 11.5~13.3 times.　　If the cost of equity capital is assumed to be 11.5%~12.5%, the above range will expand accordingly. On the issue of the net interest margin of Everbright Bank to be improved, CICC's investment report in Shanghai yesterday showed that the 2008 net interest margin for Everbright Bank was 2.8%, lower than the average net interest rate of the industry 3.09%, and that net spreads fell to 1.95% in 2009, significantly below the industry's average of 2.34% per cent,　　The main factors leading to the low net interest rates last year include low income interbank assets, relatively high bill discounting in the loan portfolio, lower loan yield in joint-stock banks, and higher deposit costs than the average level of the industry. "Without considering raising interest rates, the net interest margin calculated at the beginning of the final period will rise from 1.99% in 2009 to 2.28% in 2012."　　"CICC reported that the net profit of Everbright Bank 2009-2012-year compound growth rate is 34.5%." CICC analysts believe that the main factors for Everbright Bank net spreads are expected to rebound, including the one is that with the decline of bill discount ratio and the increase of SME loan ratio, the loan yield will rise from 5.18% last year to 2012 5.28%; second, after the loan-to-deposit ratio meets the regulatory requirements,　　Deposit competition is expected to ease in the second half of this year and deposit costs will remain stable. But the CICC report also said that interest rate liberalization and the removal of media would weaken the bank's bargaining power, thus affecting net interest margins. Everbright Bank's customers are mainly concentrated in large and medium-sized industry leading enterprises, corporate loans of about 83% of the size of a single loan of more than 100 million yuan. This leads to the relatively low bargaining power of Everbright Bank, which is influenced by the marketization of interest rates and the influence of the media. If the average corporate loan interest rate falls from 85% of the benchmark interest rate to 70%, the net spreads of Everbright Bank will narrow by 21 basis points.　　"The report notes.　　And in the middle business, CICC Analysts also pointed out that the recent suspension of the Banking Regulatory Commission may affect bank fee revenue, the estimated Everbright Bank of credit-based assets of about 80 billion ~900 billion, but the bank is still expected to continue to expand its investment banking business and financial advantages. "We expect the 2009-2012-year composite growth rate for Everbright bank fees to reach 29.2%."　　"Cicc said. According to Everbright Bank last year's annual report, financial services, underwriting and consultancy fees and bank card revenue contributed 70% of the fee income, including the agency and financial management industryTransaction fee income accounted for 33% of the fee income, which was the main source of the latter. The latest data obtained yesterday by the first financial Daily Show that, as at the end of June this year, Everbright Bank has accumulated more than 6,000 financial products for retail customers and institutional customers, with an amount of more than 900 billion yuan and a balance of nearly 170 billion yuan.　　At the end of 2009, the cumulative amount of financial products issued is about 635.1 billion yuan. CICC reported that the wealth management business also led to the development of the trusteeship business.　　As at the end of 2009, Everbright Bank managed assets of 184.8 billion yuan, listed the second joint-stock banks, securities investment fund trusteeship scale of 52.5 billion yuan, ranked third in joint-stock banks. At the same time, wealth management products also promote the high-end migration of individual customers. The CICC report shows that Everbright Bank's cumulative distribution of personal wealth management products up to the end of 2009 was about 420.9 billion yuan, while the total retail customer assets of Everbright Bank AUM (managing total assets) over 500,000 yuan accounted for retail bank assets by 35% to 47% in 2007, and the bank was expected to AUM The number of retail customers above 500,000 yuan is about 82,000.