PAB(SZ:000001) GOLDEN SUN SECURITIES·2024-08-18 06:23Investment Rating - The investment rating for Ping An Bank is "Buy (Maintain)" [3] Core Views - The report highlights that the decline in net interest margin has narrowed, and the non-performing loan generation rate has improved on a quarter-on-quarter basis. The bank's revenue for the first half of 2024 was CNY 77.132 billion, a year-on-year decrease of 13.0%, while the net profit attributable to shareholders was CNY 25.879 billion, a year-on-year increase of 1.9% [1][2]. Summary by Sections Performance - Revenue and net profit growth rates for the first half of 2024 were -13.0% and +1.9%, respectively, with revenue decline narrowing due to improved net interest margin and increased investment income. The credit cost increased by 0.3 percentage points to 1.39%, affecting net profit growth [2]. - Net interest income decreased by 21.6% year-on-year, with a net interest margin of 1.96%, down 5 basis points from the previous quarter. The yield on interest-earning assets was 4.16%, down 9 basis points, while the loan yield was 4.79%, down 15 basis points [2]. - Fee and commission income decreased by 20.6% year-on-year, with wealth management fees down 47.6%. However, the bank's wealth management scale reached CNY 1.05 trillion, up 18.3% year-on-year [2]. - Other non-interest income grew by 56.7% year-on-year, supported by increased bond investment income [2]. Asset Quality - The non-performing loan ratio was 1.07% at the end of June, with a coverage ratio of 264%. The non-performing loan generation rate improved, with an annualized rate of 1.64%, down 28 basis points from the previous year [7][8]. - The bank actively managed risks, reducing exposure in the real estate sector and maintaining overall asset quality stability [8]. Financial Indicators - Total assets reached CNY 5.75 trillion, a year-on-year increase of 4.6%. Total loans amounted to CNY 3.41 trillion, down 0.7% year-on-year [8]. - The bank's current dividend yield is 7.17%, which could rise to 9.62% after considering the mid-term dividend [9]. The price-to-book ratio is projected at 0.45x for 2024, indicating attractive valuation [9].