INDUSTRIAL BANK(601166) 新华财经·2025-04-01 06:59Core Viewpoint - In 2024, Industrial Bank achieved significant financial recovery with total assets exceeding 10 trillion yuan, marking a turnaround in revenue and net profit growth amidst a challenging banking environment [1][2]. Financial Performance - As of the end of 2024, Industrial Bank's total assets reached 10.51 trillion yuan, a 22.14% increase from the end of 2021, with an annual growth rate of 6.89% [2]. - The bank reported operating income of 212.23 billion yuan, a year-on-year increase of 0.66%, and net profit of 77.21 billion yuan, up 0.12%, indicating a reversal from previous declines [2]. - The improvement in revenue was attributed to growth in interest-earning assets and increased investment income, while net profit benefited from controlled interest margin decline and reduced risk and operating costs [2]. Interest Margin Management - In 2024, Industrial Bank's net interest margin was 1.82%, with a year-on-year decline of 11 basis points, maintaining a relatively good level compared to peers [3]. - The bank plans to enhance interest margin management through initiatives focused on corporate finance, retail, and financial markets [3]. Non-Interest Income and Asset Quality - Non-interest income decreased by 0.32% due to regulatory impacts on fees, but the bank aims to expand intermediary business income to diversify revenue sources [4]. - Industrial Bank reported a reduction in non-performing assets and improved asset quality, with a decrease in credit card non-performing rates by 0.29 percentage points [5]. Dividend Policy and Shareholder Returns - The bank plans to distribute a dividend of 1.06 yuan per share, totaling 22.02 billion yuan, with a payout ratio exceeding 30% for the first time [6]. - Industrial Bank's stock has increased by 21% over the past three years, with a current price-to-book ratio of 0.58 and a dividend yield of 4.98%, indicating a relatively attractive valuation [7]. Valuation Management Strategy - The bank is implementing a valuation management plan to enhance shareholder value through accelerated transformation, efficient capital use, and balanced dividend policies [8]. - The focus is on creating a larger profit pool for distribution to shareholders while maintaining a stable and increasing dividend rate [8].