ICBC(601398) EBSCN·2024-09-02 05:50Investment Rating - The report maintains a "Buy" rating for the company with a current price of 5.98 CNY [8]. Core Views - The company has shown resilience in its fundamentals despite a decline in revenue growth, with a year-on-year decrease of 6% in operating income and a 1.9% decrease in net profit attributable to shareholders for the first half of 2024 [10]. - The bank's asset quality remains stable, with a non-performing loan (NPL) ratio of 1.35% as of the end of Q2, down 1 basis point from Q1 [15]. - The bank's capital adequacy ratios are solid, with a core Tier 1 capital ratio of 13.84% and a total capital adequacy ratio of 19.16% as of the end of Q2 [35]. Summary by Sections Financial Performance - For the first half of 2024, the bank achieved operating income of 420.5 billion CNY, a decrease of 6% year-on-year, and a net profit of 170.5 billion CNY, down 1.9% year-on-year [10]. - The bank's net interest income and non-interest income growth rates decreased by 6.8% and 3.6% respectively [10]. Asset Quality - The NPL ratio decreased to 1.35% in Q2, with corporate loans showing an NPL ratio of 1.69% and personal loans at 0.9% [15]. - The provision coverage ratio improved to 218.4%, indicating a stable risk mitigation capacity [15]. Capital Adequacy - As of Q2, the bank's capital adequacy ratios were as follows: core Tier 1 capital ratio at 13.84%, Tier 1 capital ratio at 15.25%, and total capital adequacy ratio at 19.16% [35]. - The risk-weighted asset growth rate decreased to 3.6%, reflecting a slowdown in capital consumption [35]. Earnings Forecast - The report forecasts EPS for 2024, 2025, and 2026 to be 1.02 CNY, 1.05 CNY, and 1.08 CNY respectively, with corresponding P/B ratios of 0.58, 0.54, and 0.51 [16].