CNCB(601998) 民生证券·2024-08-29 06:30Investment Rating - The report maintains a "Recommended" rating for CITIC Bank [2][9]. Core Views - CITIC Bank's revenue growth shows resilience, with a net interest margin recovery leading to improved net interest income in Q2. Other non-interest income continues to boost revenue [1]. - The bank's asset quality remains stable, with a non-performing loan ratio of 1.19% and a provision coverage ratio of 207% as of the end of H1 2024 [1]. - The bank announced a mid-term cash dividend, with a payout ratio of 29.2% of net profit attributable to ordinary shareholders, enhancing its investment value [1]. Summary by Sections Financial Performance - For H1 2024, CITIC Bank reported revenue of 109 billion yuan, a year-on-year increase of 2.7%, and a net profit of 35.5 billion yuan, a decrease of 1.6% year-on-year [1]. - The bank's net interest income in Q2 2024 increased by 2.9% year-on-year, supported by a recovery in net interest margin [1]. - Other non-interest income rose by 44.3% year-on-year in H1 2024, benefiting from favorable market conditions [1]. Asset Quality - The non-performing loan ratio stood at 1.19% at the end of H1 2024, with a provision coverage ratio of 207% [1]. - The bank's asset quality management is effective, with the non-performing loan ratio for corporate loans improving, while retail asset quality showed some volatility [1]. Capital and Dividends - The bank's mid-term cash dividend reflects a strong capital position, with a payout ratio of 29.2% of net profit attributable to ordinary shareholders [1]. - The report projects earnings per share (EPS) for 2024-2026 to be 1.26, 1.29, and 1.35 yuan, respectively, with a price-to-book (PB) ratio of 0.5 for the closing price on August 28, 2024 [2].