GOLDEN SUN SECURITIES·2024-08-31 04:12Investment Rating - The report maintains a "Buy" rating for the company [22]. Core Views - The company's performance in the first half of the year shows marginal improvement despite revenue and profit pressures, with expectations for continued recovery throughout the year [28]. - The company has established a virtuous cycle characterized by low cost, low risk, high ROE, and endogenous capital replenishment, maintaining a leading position in the industry [28]. Financial Performance - The company reported a revenue of 172.9 billion yuan, a year-on-year decrease of 3.1%, and a net profit attributable to shareholders of 74.7 billion yuan, down 1.3% [22]. - The net interest margin for the first half of the year was 2.00%, with a slight decrease of 2 basis points [22]. - The company’s total assets reached 11.6 trillion yuan, with a slight quarter-on-quarter increase of 0.5% [6]. Asset Quality - The non-performing loan (NPL) ratio stood at 0.94%, with a quarter-on-quarter increase of 2 basis points [22]. - The company’s provisioning coverage ratio was 434%, with a slight decrease of 2.4 percentage points [6]. Business Segments - The corporate real estate sector continues to improve, with a non-performing loan ratio decreasing by 4 basis points to 4.78% [3]. - Consumer loans remained stable, with a non-performing loan ratio of 1.04% as of June, showing minimal changes [4]. Wealth Management - The company maintains a leading position in wealth management, although the fee and commission income decreased by 32.5% year-on-year due to rate reductions and market volatility [7]. Growth Outlook - The company expects to see a recovery in performance driven by improved margins and a rebound in wealth management demand [28]. - The total loan balance decreased by 68 billion yuan to 6.7 trillion yuan, primarily due to a reduction in bill discounting [6].