HUA XIA BANK(SH:600015) Jing Ji Guan Cha Wang·2025-04-18 13:35Core Viewpoint - In 2024, Huaxia Bank is focusing on operational transformation to increase non-interest income to offset the impact of declining interest margins due to continuous reductions in the Loan Prime Rate (LPR) [2] Financial Performance - As of the end of 2024, Huaxia Bank's total assets reached 4,376.491 billion yuan, a year-on-year increase of 2.86% [2] - The bank achieved operating income of 97.146 billion yuan, up 4.23% from the previous year [2] - The net profit attributable to shareholders was 27.676 billion yuan, reflecting a growth of 4.98% year-on-year [2] Revenue Composition - Non-interest income contributed significantly to revenue growth, with total operating income of 97.146 billion yuan, where net interest income was 62.063 billion yuan, down 11.89%, and non-interest income was 35.083 billion yuan, up 54.11% [4] - The proportion of net interest income has been gradually decreasing over the past three years, with 2024 figures showing 63.89% for net interest income and 36.11% for non-interest income [4] Interest Margin and Income - The net interest margin for Huaxia Bank in 2024 was 1.59, a decrease of 0.23 percentage points from 1.82 in 2023 [4] - Factors contributing to the decline in asset yield include the downward trend of LPR, housing mortgage loan rate policies, and insufficient credit demand [4] Non-Interest Income Breakdown - Within non-interest income, net fee and commission income was 5.443 billion yuan, a decrease of 14.98% year-on-year [5] - Investment income, fair value changes, and foreign exchange gains totaled 24.382 billion yuan, an increase of 93.78% compared to the previous year [5] Investment Strategy - Huaxia Bank capitalized on the declining bond market interest rates in 2024, increasing trading activities in the bond market, which led to higher investment income and fair value changes [6] - Analysts predict that the bond market will continue to maintain a low-interest environment in 2025, allowing Huaxia Bank to focus on market changes and optimize investment strategies [6] Dividend Policy - The bank proposed a cash dividend of 3.05 yuan per 10 shares, with a cash dividend ratio of 25.04% for 2024 [8] - The bank's management emphasized the importance of balancing shareholder returns with sustainable development during its ongoing transformation [8] Challenges and Future Outlook - Huaxia Bank faces challenges from insufficient domestic demand, intensified market competition, and pressure from narrowing interest margins [8] - The bank plans to enhance structural adjustments and accelerate its transformation towards a "commercial bank + investment bank" model, while maintaining strict cost management [8]