ZHONGTAI SECURITIES·2024-09-01 06:30Investment Rating - The report maintains a rating of "Buy" for the company [26]. Core Views - The company shows a narrowing decline in revenue and profit, with revenue down by 2.5% and net profit down by 1.2% year-on-year [34][10]. - Net interest income increased by 1.2% quarter-on-quarter, while the annualized net interest margin decreased by 2 basis points to 1.40% [37][13]. - The asset and liability growth rate indicates a slight slowdown in credit issuance, while active liabilities are growing significantly [39]. Summary by Sections Revenue and Profit - Revenue decreased by 2.5% year-on-year, and net profit decreased by 1.2% year-on-year, indicating a marginal improvement in performance decline [34][10]. - The net interest income showed a quarter-on-quarter increase of 1.2%, while net non-interest income decreased by 0.4% year-on-year [34][21]. Asset and Liability Structure - Credit issuance has slightly slowed down, with loans increasing by 9.8% year-on-year in the first half of the year [14]. - The company experienced a significant increase in active liabilities, with bond issuance up by 58.7% year-on-year [16]. Asset Quality - The non-performing loan ratio remains stable, and the provision coverage ratio has increased, indicating a solid asset quality [23][25]. Capital Adequacy - The core Tier 1 capital adequacy ratio increased to 12.03%, reflecting a healthy capital position [25].