Dividend Distribution - The proposed cash dividend for 2024 is RMB 6.08 per 10 shares, totaling RMB 11.799 billion, which represents 28.32% of the net profit attributable to ordinary shareholders and 26.51% of the total net profit [1] - The interim dividend for 2024 was RMB 2.46 per 10 shares, amounting to RMB 4.774 billion, while the proposed year-end dividend is RMB 3.62 per 10 shares, totaling RMB 7.025 billion [1] - The shareholder return plan for 2024-2026 indicates that cash distributions will range from 10% to 35% of the distributable profits for the year [1] Interest Margin Outlook - The net interest margin for 2024 is projected at 1.87%, a decrease of 51 basis points year-on-year, primarily due to declining market interest rates and the reduction of high-risk retail assets [1] - For 2025, the net interest margin is expected to face downward pressure, but the decline rate is anticipated to slow down [1] Asset Quality Performance - The non-performing loan (NPL) ratio at the end of 2024 is 1.06%, unchanged from the previous year, with an NPL generation rate of 1.80%, down by 0.09 percentage points year-on-year [2] - The provision coverage ratio is 250.71%, a decrease of 26.92 percentage points from the previous year [2] Retail Loan Situation - The personal loan balance at the end of 2024 is RMB 1.7672 trillion, a decrease of 10.6% from the previous year, with mortgage loans accounting for 62.8% of personal loans [3] - Strategies include optimizing loan structures, enhancing risk management, and improving customer engagement to support long-term business health [3] Corporate Loan Direction - New corporate loans in 2024 for key industries (infrastructure, automotive, public utilities, real estate) are projected at RMB 442.5 billion, a year-on-year increase of 35.4% [4] - New loans for emerging industries (new manufacturing, new energy, new lifestyle) are expected to reach RMB 216 billion, reflecting a year-on-year growth of 41.9% [4] Wealth Management Performance - The number of wealth management clients reached 1.46 million, a growth of 5.7% year-on-year, with private banking clients increasing by 7.3% to 300,000 [5] - The assets under management (AUM) for private banking clients totaled RMB 1.9755 trillion, a 3.1% increase from the previous year [5] - Wealth management service fees amounted to RMB 4.4 billion, with a decline attributed to reduced fees in the insurance channel [5]

Group 1: Strategic Direction and Financial Performance - The bank's strategic direction for 2025 focuses on deepening party leadership, enhancing financial services for the real economy, and strengthening financial risk prevention [1] - The core Tier 1 capital adequacy ratio, Tier 1 capital adequacy ratio, and total capital adequacy ratio for the end of 2024 are 9.12%, 10.69%, and 13.11% respectively, meeting regulatory requirements [2] Group 2: Revenue and Income Analysis - The net income from fees and commissions for 2024 is 24.1 billion yuan, a decrease of 18.1% year-on-year [3] - The breakdown of fee income includes: - Settlement fees: 3 billion yuan, down 8.3% - Agency and entrusted fees: 5.4 billion yuan, down 29.4% - Credit card fees: 13.2 billion yuan, down 18.3% - Other fees: 4.8 billion yuan, down 23% [3] Group 3: Retail Deposit Performance - The personal deposit balance at the end of 2024 is 1,287.2 billion yuan, an increase of 6.6% year-on-year [4] - The average daily balance of personal deposits for the year is 1,263.2 billion yuan, up 10.1% compared to the previous year [4] Group 4: Real Estate Loan Quality - The non-performing loan ratio for corporate real estate loans at the end of 2024 is 1.79%, an increase of 0.93 percentage points year-on-year, but still at a low level overall [5] Group 5: Corporate Business Development - The corporate loan balance at the end of 2024 is 1,606.9 billion yuan, an increase of 12.4% year-on-year [6] - The corporate deposit balance is 2,246.5 billion yuan, up 2.1% from the previous year [7]

Retail Strategy and Performance - The bank maintains a steadfast retail strategy, focusing on customer-centric approaches to drive high-quality and sustainable development in retail business [1] - As of the end of 2024, personal loan balance reached CNY 17,671.68 billion, with a significant reduction in high-risk loans and an increase in the proportion of mortgage loans by 4.0 percentage points to 62.8% [3] - The bank's net interest margin for 2024 was 1.87%, a decrease of 51 basis points year-on-year, primarily due to market interest rate declines and proactive reduction of high-risk retail assets [1] Corporate Business Overview - By the end of 2024, corporate loan balance was CNY 16,069 billion, reflecting a growth of 12.4% year-on-year, while corporate deposit balance was CNY 22,465 billion, up 2.1% [2] - The bank aims to enhance support for key sectors such as advanced manufacturing, green finance, and rural revitalization through focused financing efforts [2] Financial Performance - In 2024, the bank reported operating income of CNY 1,466.95 billion, a decline of 10.9% year-on-year, with net profit at CNY 445.08 billion, down 4.2% [4] - The bank's management expenses decreased by 11.7% to CNY 405.82 billion, while credit and other asset impairment losses fell by 16.4% to CNY 494.28 billion [4] Asset Quality and Risk Management - The personal loan non-performing loan (NPL) ratio decreased by 0.04 percentage points by the end of 2024, with specific NPL ratios for housing loans at 0.47%, credit card loans at 2.56%, and consumption loans at 1.35% [5] - The bank emphasizes differentiated risk management policies and proactive asset structure adjustments to enhance asset quality and support sustainable retail business development [5] Real Estate Loan Management - The bank's corporate real estate loan NPL ratio was 1.79% at the end of 2024, an increase of 0.93 percentage points year-on-year, primarily due to external environmental pressures [6] - Continuous monitoring and management of real estate loans are prioritized to mitigate risks associated with project financing [6] Dividend Policy - The bank plans to distribute cash dividends of CNY 6.08 per 10 shares for the year 2024, totaling CNY 117.99 billion, which represents 28.32% of the net profit attributable to ordinary shareholders [7] - The bank aims to enhance the stability and predictability of dividends while ensuring compliance with capital adequacy requirements [7]

Investment Rating - The investment rating for Ping An Bank is adjusted to "Accumulate" with a target price of 13.12 CNY, representing a potential upside of 14% from the current price of 11.49 CNY [5]. Core Views - The bank's non-interest income continues to show strong performance, with total revenue for 2024 estimated at approximately 146.7 billion CNY, reflecting a year-over-year decline of 10.93% but an upward revision in growth rate by 1.65 percentage points compared to the previous quarter [2][9]. - The net interest income for the year is projected at 93.4 billion CNY, down 20.82% year-over-year, while non-interest income is expected to reach 53.3 billion CNY, up 14% year-over-year, indicating a significant recovery in growth [2][9]. - The bank's asset quality remains stable, with a non-performing loan ratio of 1.06%, consistent with the previous quarter [3][19]. Financial Performance Summary - For 2024, the bank's total revenue is approximately 1467 billion CNY, with a net profit attributable to shareholders of 44.5 billion CNY, showing a year-over-year decrease of 4.19% [1][9]. - The bank's net interest margin (NIM) is recorded at 1.87%, a decline of 6 basis points compared to the previous quarter [3][19]. - The bank's total interest-earning assets amount to 6.09 trillion CNY, reflecting a slight increase of 0.2% from the previous quarter [3][19]. Profitability and Valuation - The bank's profitability is expected to show resilience, with projected net profit growth rates for 2025, 2026, and 2027 at 1.40%, 3.94%, and 3.15% respectively [4][26]. - The price-to-book ratio (P/B) is estimated to be 0.41x for 2025, indicating a valuation that suggests potential for price appreciation [4][26]. Asset and Liability Structure - As of the end of 2024, the bank's interest-bearing liabilities total 5.07 trillion CNY, marking a 2.9% increase from the previous quarter [3][19]. - The composition of interest-earning assets includes loans (54.1%), financial investments (26.2%), interbank and reverse repos (15.3%), and deposits with the central bank (4.4%) [3][19].

Core Viewpoint - Ping An Bank Shanghai Branch is committed to protecting the legitimate rights and interests of financial consumers through various measures, integrating the mission of "consumer protection for the people" into daily operations [1][2][3] Group 1: Financial Consumer Protection Initiatives - The bank's core goal is to "comprehensively enhance financial service levels and protect consumer rights," solidifying its responsibility and deepening technological empowerment to create a digital financial consumer protection management system [3][4] - Ping An Bank utilizes cutting-edge technologies such as artificial intelligence to develop a comprehensive financial service process that includes "pre-education, efficient feedback during service, and timely response afterward" [3][4] - The bank has developed an intelligent consumer protection system and a digital platform, leveraging AI and big data analysis to promote systematic, intelligent, and digital internal management of consumer protection efforts [3][4] Group 2: Community Engagement and Education - The bank actively innovates its consumer protection education model, encouraging employees to engage with various communities and organizations in Shanghai to conduct innovative financial consumer protection education activities [3][4] - In 2024, the bank plans to organize 1,356 online and offline consumer protection education events, reaching approximately 3.86 million people [3][4] - To expand the coverage of consumer protection education, the bank emphasizes the use of both online and offline platforms, creating a comprehensive library of financial education resources to guide the public in understanding and utilizing financial services [4] Group 3: Future Commitment - The bank will continue to adhere to a "people-centered" approach, integrating consumer protection work into corporate governance and enhancing control over the entire business process to strengthen source governance and protect consumer rights [4]

Investment Rating - The investment rating for Ping An Bank is adjusted to "Accumulate" with a target price of 13.12 CNY, representing a potential upside of 14% from the current price of 11.49 CNY [5]. Core Views - The bank's non-interest income continues to show strong performance, with total revenue for 2024 estimated at approximately 146.7 billion CNY, reflecting a year-over-year decline of 10.93% but an upward revision of 1.65 percentage points compared to the previous quarter [2][9]. - The net interest income for the year is projected to be 93.4 billion CNY, down 20.82% year-over-year, while non-interest income is expected to reach 53.3 billion CNY, up 14% year-over-year, indicating a significant recovery in growth [2][9]. - The bank's asset quality remains stable, with a non-performing loan ratio of 1.06%, consistent with the previous quarter [3][19]. Financial Performance Summary - For 2024, the bank's total revenue is approximately 146.7 billion CNY, with a year-over-year decrease of 10.93% [2][9]. - The net profit attributable to shareholders is projected at 44.5 billion CNY, down 4.19% year-over-year [2][9]. - The bank's net interest margin (NIM) is recorded at 1.87%, a decline of 6 basis points compared to the previous quarters [3][19]. - The bank's return on average assets (ROAA) is 0.78%, while the return on average equity (ROAE) is 9.20% [26]. Asset and Liability Structure - As of the end of 2024, the total interest-earning assets amount to 6.09 trillion CNY, reflecting a slight increase of 0.2% from the previous quarter [3][19]. - The total interest-bearing liabilities are reported at 5.07 trillion CNY, showing a growth of 2.9% quarter-over-quarter [3][19]. - The composition of interest-earning assets includes loans (54.1%), financial investments (26.2%), interbank and reverse repos (15.3%), and deposits with the central bank (4.4%) [3][19]. Profitability Forecast - The bank's net profit is expected to grow at a compound annual growth rate (CAGR) of 1.40%, 3.94%, and 3.15% for the years 2025, 2026, and 2027, respectively [4][26]. - The projected earnings per share (EPS) for 2025, 2026, and 2027 are 2.43 CNY, 2.52 CNY, and 2.60 CNY, respectively [4][26].

Investment Rating - The report maintains a "Recommended" rating for Ping An Bank, with a target price corresponding to 0.5 times the 2025 PB based on the closing price on March 17, 2025 [4][6]. Core Insights - The bank's revenue for 2024 was CNY 146.7 billion, a year-on-year decrease of 10.9%, while the net profit attributable to shareholders was CNY 44.51 billion, down 4.2% year-on-year. The non-performing loan ratio stood at 1.06% with a provision coverage ratio of 251% [1][3]. - The decline in revenue is narrowing, supported by a significant increase in non-interest income, which rose by 68.7% year-on-year. However, net interest income and commission income saw declines of 20.8% and 18.1% respectively [1][2]. - The bank continues to optimize its retail structure while significantly increasing corporate loan sizes, with corporate loans growing by 12.4% year-on-year, while retail loans decreased by 10.6% [2][3]. Summary by Sections Financial Performance - In 2024, Ping An Bank's total revenue was CNY 146.7 billion, with a year-on-year growth rate of -10.9%. The net profit attributable to shareholders was CNY 44.51 billion, reflecting a -4.2% change year-on-year. The bank's non-performing loan ratio was 1.06%, and the provision coverage ratio was 251% [1][5]. - The bank's non-interest income was a key support, increasing by 68.7% year-on-year, while net interest income and commission income decreased by 20.8% and 18.1% respectively [1][2]. Loan Structure - The total loan amount decreased by 1.0% year-on-year, with corporate loans increasing by 12.4% and retail loans decreasing by 10.6%. The bank is focusing on optimizing its retail loan structure while supporting the real economy through increased corporate lending [2][3]. Risk Management - The non-performing loan ratio remained low at 1.06%, with a provision coverage ratio of 251%, indicating strong risk management capabilities. The bank has improved its asset quality through effective risk control measures [3][4]. Earnings Forecast - The forecast for earnings per share (EPS) for 2025, 2026, and 2027 is CNY 2.27, CNY 2.32, and CNY 2.41 respectively. The expected growth rates for net profit are -1.0% for 2025, 2.0% for 2026, and 4.0% for 2027 [5][31].

Investment Rating - The report maintains a "Recommended" rating for Ping An Bank, with a closing price of 11.49 yuan as of March 17, 2025, corresponding to 0.5 times the projected price-to-book ratio for 2025 [6][4]. Core Views - The report highlights that structural optimization is yielding results, and risk management is effective, with a focus on supporting the real economy and improving asset quality [4][2]. - The bank's revenue for 2024 is reported at 146.7 billion yuan, a year-on-year decrease of 10.9%, while net profit attributable to shareholders is 44.51 billion yuan, down 4.2% year-on-year [1][5]. - Non-interest income has significantly increased, with other non-interest income rising by 68.7% year-on-year, which has become a major support for revenue [1][2]. Summary by Sections Revenue and Profitability - In 2024, Ping An Bank's revenue decreased by 10.9% year-on-year to 146.7 billion yuan, while net profit fell by 4.2% to 44.51 billion yuan [1][5]. - The bank's net interest income decreased by 20.8% year-on-year, and commission income fell by 18.1%, although the decline in revenue is showing signs of stabilization [1][2]. Loan Structure and Quality - Total loans decreased by 1.0% year-on-year, with corporate loans increasing by 12.4% and retail loans decreasing by 10.6% [2][3]. - The non-performing loan (NPL) ratio remained low at 1.06%, with a provision coverage ratio of 251%, indicating strong risk management capabilities [3][4]. Capital and Earnings Forecast - The report projects earnings per share (EPS) for 2025, 2026, and 2027 to be 2.27 yuan, 2.32 yuan, and 2.41 yuan respectively [4][5]. - The bank's capital adequacy ratio is expected to decline from 13.11% in 2024 to 10.87% by 2027, reflecting a tightening capital environment [31][32].

Investment Rating - The investment rating for the company is maintained at "Buy" with an expectation of a relative increase of 15% or more compared to the market index over the next six months [13]. Core Insights - The company has announced a cash dividend of 6.08 CNY per 10 shares for the year 2024, resulting in a dividend payout ratio of approximately 28.3%, with an annualized dividend yield of 5.1% based on the closing price on March 14 [2]. - Total assets grew by 3.3% year-on-year, while financial investments increased by 14.8%. However, loans decreased by 0.8% year-on-year, with corporate loans making up 47.6% of the loan structure, an increase of 5.7 percentage points from the beginning of the year [2]. - The company is actively transforming its corporate and retail business, addressing retail business risks, and restructuring its asset-liability balance to achieve a balance between volume and price [3]. Summary by Sections Financial Performance - For the year 2024, the company reported a net profit of 44.51 billion CNY, with a projected net profit of 45.75 billion CNY for 2025 and 46.18 billion CNY for 2026, reflecting a decline in profit expectations for 2025-2026 due to business restructuring and weak overall demand [5][3]. - The net interest margin is reported at 1.87%, a decrease of 51 basis points year-on-year [2]. Asset Quality - The non-performing loan ratio remained stable at 1.06%, with the attention ratio and overdue ratio increasing to 1.93% and 1.52%, respectively [3]. - The retail business's non-performing loan ratio is at 1.39%, with variations in credit card, consumer loan, and business loan delinquency rates [3]. Valuation Metrics - The price-to-book (PB) ratios for 2025-2027 are projected at 0.44, 0.41, and 0.39, respectively, based on the closing price of 11.97 CNY on March 14 [3].

Investment Rating - The investment rating for Ping An Bank is maintained as "Buy" [3]. Core Views - The bank continues to maintain a high dividend payout, distributing cash dividends of 6.08 yuan per 10 shares for the full year 2024, resulting in a dividend rate of approximately 28.3% [2]. - Total assets grew by 3.3% year-on-year, with financial investments increasing by 14.8%. However, loans decreased by 0.8% year-on-year [2]. - The bank's asset quality indicators remained stable, with a non-performing loan ratio of 1.06%, unchanged from the previous year [3]. - The bank is actively transforming its corporate and retail businesses while managing retail risks and restructuring its asset-liability balance [3]. - Profit forecasts for 2025-2026 have been revised downwards due to business restructuring and weak overall demand, with projected net profits of 458 billion yuan, 462 billion yuan, and 491 billion yuan for 2025-2027 [3]. Summary by Sections Financial Performance - For 2024, the bank's operating income is projected at 146,695 million yuan, with a year-on-year decrease of 10.9%. The net profit attributable to shareholders is expected to be 44,508 million yuan, reflecting a decline of 4.2% [5]. - The bank's net interest margin is reported at 1.87%, down 51 basis points year-on-year [2]. Asset Quality - As of the end of 2024, the non-performing loan generation rate is 1.8%, a decrease of 9 basis points year-on-year. The provision coverage ratio stands at 250.71% [3]. - Retail business risks are gradually being resolved, with a retail loan non-performing ratio of 1.39%, which has increased by 2 basis points since the beginning of the year [3]. Future Outlook - The bank's business structure is undergoing adjustments, with a focus on balancing volume and price. The projected price-to-book ratios for 2025-2027 are 0.44, 0.41, and 0.39, respectively [3].