重庆银行：存款成本改善，资产质量优化

Investment Rating - The investment rating for Chongqing Bank is "Buy (Maintain)" [3] Core Views - Chongqing Bank's performance shows improvement in deposit costs and asset quality, with a notable increase in revenue and net profit for the first half of 2024 [1][8] - The bank is expected to benefit from the development opportunities brought by the Chengdu-Chongqing economic circle, with a stable growth outlook for net profit in the coming years [8] Summary by Sections Financial Performance - In H1 2024, Chongqing Bank achieved revenue of 7.16 billion yuan, a year-on-year increase of 2.6%, and a net profit attributable to shareholders of 3.03 billion yuan, up 4.1% year-on-year [1] - The net interest income decreased by 3.0% year-on-year, with a net interest margin of 1.42%, down 10 basis points from 2023 [1] - Non-interest income from fees and commissions surged by 160% year-on-year, primarily driven by growth in wealth management fees and agency wealth management business [2] Asset Quality - As of June 2024, the non-performing loan (NPL) ratio was 1.25%, down 8 basis points from March 2024, with a provision coverage ratio of 250%, up 16 percentage points [2] - The bank's corporate NPL ratio decreased to 0.99%, while the personal NPL ratio increased to 2.44% [2] Asset and Liability Management - Total assets reached 806 billion yuan, growing by 6.1% year-to-date, with total loans amounting to 417 billion yuan, up 6.9% [8] - Total deposits were 450 billion yuan, an increase of 8.5% year-to-date, primarily driven by personal time deposits [8] Investment Outlook - The bank's net profit is projected to reach 5.13 billion yuan in 2024, with a growth rate of 4.0%, and is expected to continue growing in the following years [8] - The current price-to-book (PB) ratio is 0.42x, indicating potential for valuation recovery [8]