INDUSTRIAL BANK(SH:601166) Xinda Securities·2024-08-23 07:42Investment Rating - The investment rating for Industrial Bank (兴业银行) is not explicitly stated in the provided documents, but the report indicates a positive outlook based on the bank's performance metrics and growth strategies. Core Views - The report highlights that Industrial Bank achieved an operating income of 113.04 billion yuan in the first half of 2024, representing a year-on-year growth of 1.80%, and a net profit attributable to shareholders of 43.05 billion yuan, with a year-on-year increase of 0.86% [2][3]. Summary by Sections Financial Performance - As of the end of the first half of 2024, Industrial Bank's total assets reached 10.35 trillion yuan, a year-on-year increase of 4.65%. The loan growth was robust, with total loans increasing by 5.8% year-on-year, and corporate loans growing by 14.8% [3][4]. - The net interest margin for the first half of 2024 was 1.86%, a decrease of 9 basis points year-on-year, but the decline has narrowed compared to the first quarter [3][4]. Asset Quality - The non-performing loan ratio stood at 1.08% at the end of the first half of 2024, a slight increase of 0.01 percentage points from the end of the previous year. The overall asset quality remains stable, with a provision coverage ratio of 237.82% [4][5]. Growth Strategies - Industrial Bank is focusing on integrating its strategic initiatives, such as "three cards," "five new tracks," and "digital industrial bank," to enhance asset allocation in key areas like green finance, technology, and inclusive finance. The balance of loans in these sectors has seen significant growth, with green loans up by 13.13%, technology loans by 9.25%, and inclusive loans by 16.54% year-on-year [3][4]. Profit Forecast - The report forecasts that the net profit attributable to shareholders will grow at rates of 0.17%, 3.30%, and 5.40% for the years 2024 to 2026, with expected earnings per share (EPS) of 3.72 yuan, 3.84 yuan, and 4.05 yuan respectively [5].