SPD BANK(SH:600000) INDUSTRIAL SECURITIES·2024-08-27 09:48Investment Rating - The report maintains an "Accumulate" rating for the company [1][5] Core Insights - The company's performance in Q2 exceeded expectations due to active loan expansion, stable interest margins, and reduced credit costs, with H1 revenue and net profit showing a year-on-year change of -3.3% and +16.6% respectively [1][3] - The bank's loan growth accelerated, with corporate loans increasing by 13.5% in H1 2024, while retail loan balances decreased [1][3] - The non-performing loan (NPL) ratio continued to decline, reaching 1.41% in H1 2024, with a slight increase in the provision coverage ratio to 175% [2][4] Summary by Sections Financial Performance - In H1 2024, the company achieved revenue of 882 billion and a net profit of 270 billion, with Q2 showing a revenue decline of 0.5% but a net profit increase of 30.9% [1][3] - Net interest income decreased by 3.9% year-on-year, while non-interest income showed a mixed performance with a 12.0% decline in fee income but a 6.4% increase in other non-interest income [1][3] Loan Growth - Total loans increased by 6.8% year-on-year in H1 2024, with corporate loans contributing significantly to this growth [1][3] - New loans issued in H1 2024 amounted to approximately 300 billion, surpassing the total for the previous year [1][3] Interest Margin and Costs - The net interest margin for H1 2024 was 1.48%, with a slight improvement in Q2 due to reduced funding costs [2][3] - The loan yield decreased to 4.03%, while the deposit cost rate fell to 2.06%, reflecting effective cost management strategies [2][3] Asset Quality - The NPL ratio decreased to 1.41%, with corporate NPLs down to 1.48% and real estate NPLs significantly reduced from 4.11% to 2.74% [2][4] - The bank maintained strong efforts in asset recovery, leading to increased write-offs and recoveries in H1 2024 [4] Earnings Forecast - The EPS for 2024 and 2025 has been slightly adjusted to 1.45 and 1.48 respectively, with an expected net asset value per share of 21.89 by the end of 2024 [5]