PAB(SZ:000001) Huachuang Securities·2024-08-16 05:07Investment Rating - The report maintains a "Recommended" investment rating for Ping An Bank, with a target price of 13.5 yuan [2][8]. Core Views - The bank's operating income for the first half of 2024 was 77.132 billion yuan, a year-on-year decrease of 13.0%, while net profit attributable to shareholders was 25.879 billion yuan, a year-on-year increase of 1.9% [2]. - The bank's non-performing loan ratio remained stable at 1.07%, with a provision coverage ratio of 264%, which increased by 3 percentage points from the previous quarter [2]. - The bank is focusing on optimizing its asset structure, reducing high-risk retail loans, and increasing support for corporate loans, particularly in key sectors such as manufacturing and green finance [2][8]. Summary by Sections Financial Performance - In Q2 2024, the bank's revenue decreased by 11.8% year-on-year, but the decline was narrowing. The net interest income fell by 21.6% year-on-year, while non-interest income saw a significant increase of 56.8% [2]. - The bank's management expenses decreased by 10% year-on-year, contributing to the positive net profit growth [2]. Asset Quality - The bank's asset quality indicators remained stable, with a non-performing loan ratio of 1.07% and a slight increase in the provision coverage ratio [2][8]. - The overdue loan balance and ratio decreased compared to the end of the previous year, indicating improved asset quality management [2]. Business Strategy - The bank is actively adjusting its asset structure, focusing on reducing high-yield risk assets and enhancing the balance of "volume, price, and risk" in its retail loan portfolio [2]. - The bank plans to increase lending in lower-risk areas such as housing mortgages and new energy vehicle loans while enhancing local operational capabilities [2]. Dividends and Shareholder Returns - The bank announced a mid-term dividend payout of 2.46 yuan per 10 shares, representing a dividend rate of nearly 20%, reflecting its commitment to returning value to shareholders [8].