PAB had significant achievement in growing client base and AUMsince kicking off its full-scale retail transformation in 2016. We expect the Bankto deliver all-round improvement in financial performance going forward. Initiatecoverage with BUY.
Huge growth potential with client base expansion and upgrade.Leveraging on Ping An Group’s (PAG) integrated platform, comprehensiveproduct spectrum, and extensive distribution network, Ping An Bank (PAB)was able to achieve a rapid growth of retail client base (44% CAGR in 2016-18). The Bank’s strategic focus has now shifted to growing high-net-worthindividuals that offer greater business potential, due to broader financialdemand and higher stickiness. A key initiative is to incorporate Ping AnTrust’s wealth management team into the Bank’s private banking (PB)division. This would further boost PAB’s AUM and fee income growth.
Resilient margin amid interest liberalization. China banks would continueto face margin pressure, as PBoC gradually