兴业银行：拨备反哺盈利，息差边际企稳

Investment Rating - The investment rating for the company is "Strong Buy" (maintained) [2][8][13] Core Views - The company's net profit for the first half of 2024 reached 43.049 billion yuan, a year-on-year increase of 0.86%, supported mainly by provisioning [5][6] - The company's operating income for the first half of 2024 was 113 billion yuan, reflecting a year-on-year growth of 1.80%, although the growth rate has slightly declined [5][6] - The net interest margin stabilized at 1.86% by the end of the first half of 2024, with a decrease in funding costs contributing positively [6][8] Financial Performance Summary - As of the end of the first half of 2024, total assets reached 10.4 trillion yuan, an increase of 1.89% from the beginning of the year [5][8] - Loan balances grew by 3.81% year-to-date, while deposit balances increased by 4.85% [5][8] - The annualized return on equity (ROE) was reported at 11.1% [5] Asset Quality and Risk Management - The non-performing loan (NPL) ratio was 1.08%, with a slight increase from the previous quarter [8] - The provisioning coverage ratio stood at 238%, indicating a stable risk absorption capacity despite a slight decrease [8][11] - The company aims to enhance its business model by focusing on a "commercial bank + investment bank" strategy, which is expected to support long-term growth [8][11]