兴业银行：利润重回正增，负债成本改善

Investment Rating - The investment rating for the company is "Neutral" [1][3]. Core Views - The company has returned to positive profit growth, with a year-on-year revenue increase of 1.80% to 1130.43 billion yuan and a net profit of 430.49 billion yuan, up 0.86% year-on-year [1]. - The second quarter saw a revenue of 552.92 billion yuan, a slight decline of 0.62% year-on-year, but net profit increased by 6.54% to 187.13 billion yuan [1]. - The company’s total assets grew by 4.65% year-on-year to 10.35 trillion yuan, with loans increasing by 8.55% to 5.67 trillion yuan [1]. - The net interest margin was reported at 1.86%, showing a marginal improvement in funding costs [1]. - Non-interest income decreased by 2.65% to 381.52 billion yuan, primarily due to regulatory fee reductions and market volatility, while investment income surged by 30.26% [1]. - The asset quality showed some fluctuations, with a non-performing loan ratio of 1.08% at the end of the second quarter, slightly up from the previous quarter [1]. Financial Forecasts - The company’s net profit forecasts for 2024-2026 are 782 billion yuan, 807 billion yuan, and 844 billion yuan, respectively, with corresponding year-on-year growth rates of 1.4%, 3.2%, and 4.6% [1][4]. - The diluted EPS for the same period is projected to be 3.76 yuan, 3.88 yuan, and 4.06 yuan, with current price-to-earnings ratios of 4.6x, 4.5x, and 4.3x [1][4]. - The price-to-book ratios are expected to be 0.47, 0.44, and 0.41 for the years 2024-2026 [1][4].