瑞丰银行：非息业务支撑收入高增，资产质量保持稳健

Investment Rating - The report maintains a "Buy" rating for Ruifeng Bank [2] Core Views - Ruifeng Bank's revenue for the first half of 2024 reached 2.2 billion yuan, a year-on-year increase of 14.9%, while net profit attributable to shareholders was 800 million yuan, up 15.4% year-on-year. The non-performing loan ratio remained stable at 0.97% as of June [1][2] Financial Performance - Revenue and profit growth rates for the first half of 2024 were 14.9% and 15.4%, respectively, remaining stable compared to the first quarter. The main contributor to revenue growth was non-interest income, which increased by 94% year-on-year [1] - Net interest income decreased by 2.4% year-on-year, with a net interest margin of 1.54%, down 6 basis points from Q1. The loan yield for the first half was 4.34%, down 39 basis points year-on-year [1] - Non-interest income primarily came from other non-interest income, which increased by 91% year-on-year, with net investment income and fair value changes contributing 620 million yuan, an 88% increase [1] Asset Quality - As of June, the non-performing loan ratio was 0.97%, with a focus on retail lending pressures. The corporate non-performing loan ratio was 0.40%, down 20 basis points from the beginning of the year, while the retail non-performing loan ratio increased by 28 basis points to 1.77% [1] - The provision coverage ratio and provision-to-loan ratio improved significantly, with the provision coverage ratio reaching 324% and the provision-to-loan ratio at 3.15% as of June [1] Asset and Liability Management - Total assets reached 210.4 billion yuan, a 6.9% increase from the beginning of the year, with loans amounting to 121.7 billion yuan, up 7.3% [1] - As of June, total deposits were 159.2 billion yuan, a 10.4% increase from the beginning of the year, primarily driven by an increase in personal time deposits [1] Investment Recommendation - The report suggests that Ruifeng Bank's performance is expected to continue to outperform its peers in the second half of the year, with a narrowing of interest margin declines and stable asset quality. Therefore, a "Buy" rating is maintained [1]