I want to break free
? FY21 net profit rose 12.3%, breaking out of the low-mid single-digit growth range since FY14 and the strongest growth since FY11.
? We like FY21 ROE (first rise in 10 years), 4Q21 NIM (+3bp qoq), 4Q21 NPL ratio (-9bp qoq) and its highest-among-peers FY21 core Tier 1 ratio of 13.6%.
? Interestingly, 2H21 mortgage mix rose 32bp hoh to 34%, indicating there is little near-term pressure from Dec 2020 rules capping real-estate lending mix.
? Reiterate Add. We lift our FY22F-24F EPS by 1% on lower credit cost assumptions. Our TP remains at HK$8.