QILU BANK(SH:601665)2024-08-26 13:04Investment Rating - The report gives a "Recommended" rating for the company, indicating a positive outlook based on its fundamentals and stock price elasticity [2][30]. Core Views - The company has maintained rapid growth in performance, with a significant increase in profitability. In the first half of 2024, it achieved operating income of 6.412 billion yuan, a year-on-year increase of 5.53%, and a net profit attributable to shareholders of 2.347 billion yuan, up 16.98% year-on-year [7][30]. - The company is experiencing pressure on liability costs while expanding its scale quickly. The net interest income for the first half of 2024 was 4.401 billion yuan, a decrease of 2.17% year-on-year, with a net interest margin of 1.54%, down 20 basis points from the end of the previous year [9][30]. - There is a recovery in intermediary business, with other non-interest income showing high growth. Non-interest income reached 2.011 billion yuan in the first half of 2024, a year-on-year increase of 27.51%, driven by growth in intermediary fees and investment income [19][30]. - Asset quality has improved, and the risk compensation ability has strengthened. As of June 30, 2024, the non-performing loan ratio was 1.24%, down from the previous quarter, and the provision coverage ratio was 309.25%, an increase of 5.67 percentage points from the end of the previous year [25][30]. Summary by Sections Performance Overview - In 2024H1, the company achieved operating income of 6.412 billion yuan, a year-on-year growth of 5.53%, and a net profit of 2.347 billion yuan, up 16.98% year-on-year. The annualized weighted average ROE was 12.66%, an increase of 0.03 percentage points year-on-year [7][30]. Financial Metrics - The company's net interest income for 2024H1 was 4.401 billion yuan, down 2.17% year-on-year, with a net interest margin of 1.54%, a decrease of 20 basis points from the end of the previous year. The yield on interest-earning assets and the cost of interest-bearing liabilities were 3.62% and 2.15%, respectively [9][30]. Non-Interest Income - Non-interest income for 2024H1 was 2.011 billion yuan, a year-on-year increase of 27.51%. Intermediary business income was 719 million yuan, up 11.66% year-on-year, with significant growth in settlement and agency services [19][30]. Asset Quality - As of June 30, 2024, the non-performing loan ratio was 1.24%, down from the previous quarter, and the provision coverage ratio was 309.25%, an increase of 5.67 percentage points from the end of the previous year [25][30].