Return to double-digit growth after 8 years
? FY21 net profit growth of 10.3% yoy is the first return to double-digit growth since FY13 and is the strongest increase since FY12.
? We like its rising FY21 ROE (first rise since FY11), 10bp qoq fall in 4Q21 NPL ratio (largest fall since 2Q16), and strong capital ratios.
? Interestingly, personal business loans decelerated to 35% yoy in 2H21 from 1H21’s 51%, with mortgages accelerating to 11.1% yoy in 2H21 (1H21: 10%).
? Reiterate Add rating. We raise our TP slightly to HK$5.90 from HK$5.80.