The Company’s shareholders’ net profit was RMB61,150 mn, up 22.8% YoY in 1H21. In 1H21, net interest income was RMB99,341 mn, up 9.3% YoY. Non-interest income increased by 21.3% YoY to RMB69,489 mn. The Company’s NPL ratio was 1.01% as at the end of 1H21, down 0.06 ppts compared with the end of 2020. In 1H21, the Company's impairment losses increased by 3.6% YoY. NPL coverage ratio climbed 1.8 ppts compared with the end of 2020 to 439.5%.
The Company realized good growth in wealth management and private banking. The Company recorded RMB2,585.382 bn in the balance of retail wealth management products as at the end of 1H21, up 16.61% compared with the end of 2020. As at the end of 1H21, the Company had 111,947 private banking customers, up 11.97% compared with the end of 2020.
In 2H21, we expect that the Company's interest-earning assets will continue to grow steadily and NIM will remain relatively steady. We expect that the Company's net fee and commission income will continue to grow at a relatively fast pace. In 2H21, we project that the Company’s impairment losses will continue to grow at a relatively low pace。We expect EPS for FY21/ FY22/ FY23 to grow YoY by 14.3%/ 15.4%/ 15.7% to RMB4.336/ RMB5.002 / RMB5.786, respectively. We maintain our "Buy" rating. To reflect the change in valuations, we revise down our TP to HK$81.56 for the Company, equivalent to 15.7x FY21 PER, 13.6x FY22 PER, 11.7x FY23 PER, 2.4x FY21 PBR, 2.1x FY22 PBR and 1.9x FY23 PBR.