银行日报：8月LPR“按兵不动”

Investment Rating - The industry rating is "Outperform the Market" [9] Core Views - The banking sector's performance this year has been driven by three main factors: the spread of high dividend yield stock selection logic from state-owned banks to smaller banks, the relaxation of real estate policies, and market expectations of a slowdown in the decline of net interest margins and an impending bottoming out of fundamentals [7] - Future performance will depend on the effectiveness of previous policies and the trajectory of future fundamentals [7] - Recommended investment targets include Shanghai Pudong Development Bank, which is in a turnaround phase with improving credit costs and profit elasticity, and Jiangsu Bank, noted for its high dividend yield [7] Sector Performance - On August 20, the Shanghai Composite Index fell by 0.72%, while the banking index rose by 0.27%. State-owned banks and city commercial banks saw increases of 0.99% and 0.61%, respectively, while joint-stock banks and rural commercial banks decreased by 0.31% and 0.46% [2] Individual Stock Performance - The top three performing banks were Ningbo Bank (+2.86%), Industrial and Commercial Bank of China (+1.91%), and China Construction Bank (+1.61%). The three banks with the largest declines were Zhejiang Commercial Bank (-1.44%), Lanzhou Bank (-1.30%), and Shanghai Pudong Development Bank (-1.22%) [3] Key Data Tracking - The banking sector's price-to-book (PB) valuation shows that Chongqing Rural Commercial Bank, Shanghai Rural Commercial Bank, and Bank of Communications rank the highest, while Minsheng Bank, Zhengzhou Bank, and Zhangjiagang Bank rank the lowest [6] - The banking sector's dividend yield ranks second among all industry sectors, with Ping An Bank, Chengdu Bank, and Jiangsu Bank having the highest individual yields [6] Individual Bank Announcements - Changshu Bank reported a 12.03% year-on-year increase in operating income and a 19.58% increase in net profit attributable to shareholders for the first half of 2024. The non-performing loan ratio was 0.76%, with a provision coverage ratio of 538.81% [5] - Hangzhou Bank announced a share reduction plan by a shareholder holding less than 5%, with China Life intending to reduce its holdings by up to 110,092,230 shares, or 1.86% of the total share capital [5]