兴业银行：规模稳健扩张，利润增速转正

Investment Rating - The report maintains a "Buy" rating for the company [4]. Core Views - The company reported a positive growth in revenue, PPOP, and net profit attributable to shareholders for the first half of 2024, with year-on-year increases of 1.8%, 3.7%, and 0.9% respectively. Although there was a slight decline in growth rates compared to the first quarter of 2024, the overall performance remains stable [2][3]. - Key highlights include a significant improvement in deposit costs, with a net interest margin of 1.86% and a reduction in deposit cost rate by 18 basis points compared to the full year of 2023. The company also experienced steady asset growth, with total assets increasing by 4.6% year-on-year [2][3]. - The report indicates that the company's internal capital growth rate exceeds the growth rate of risk-weighted assets, suggesting sustainability in dividend payouts and high dividend value [2][3]. Summary by Relevant Sections Financial Performance - For the first half of 2024, the company achieved a revenue growth of 1.8%, PPOP growth of 3.7%, and a net profit growth of 0.9% compared to the previous year. The growth rates for revenue and PPOP showed a decline of 2.4 percentage points and 3.5 percentage points respectively from the first quarter of 2024, while net profit growth turned positive with an increase of 4.0 percentage points [2][3][11]. - The net interest margin for the first half of 2024 was reported at 1.86%, with a marginal decline of only 1 basis point from the previous quarter, indicating stabilization [2][3][11]. Asset Quality - The non-performing loan ratio at the end of the first half of 2024 was 1.08%, showing a slight increase of 1 basis point from the end of the first quarter. The company also reported a rise in the restructured loan ratio and a decrease in the provision coverage ratio [3][11][19]. Growth and Expansion - The company’s total assets grew by 4.6% year-on-year, with risk-weighted assets increasing by 5.5%. The internal capital growth rate was reported at 7.7%, which is higher than the growth rate of risk-weighted assets, indicating a robust capital position [2][3][11]. Profitability Forecast - The report forecasts a net profit growth of 3.87% and 3.86% for the years 2024 and 2025 respectively, with expected earnings per share of 3.65 and 3.80 yuan per share. The current stock price corresponds to a price-to-earnings ratio of 4.60X and 4.42X for 2024 and 2025 respectively [2][3][11].