Changjiang Securities·2024-09-05 01:09Investment Rating - The investment rating for Postal Savings Bank is "Buy" and is maintained [5]. Core Views - The bank's net interest income continues to show positive growth at +1.8%, despite a slight decline in overall revenue and net profit [6][7]. - The asset quality remains strong, with a non-performing loan (NPL) ratio stable at 0.84% and a decrease in the new NPL generation rate to 0.74% [6][7]. - The bank benefits from a lower cost of deposits, with the deposit interest rate decreasing by 5 basis points to 1.48%, the lowest among listed banks [6][7]. Summary by Sections Revenue and Profitability - In the first half of 2024, the bank's revenue growth was -0.1%, and net profit growth was -1.5%. The decline in revenue was primarily due to a drop in fee income [6][7]. - The net interest margin (NIM) remained relatively stable at 1.91%, with only a 1 basis point decrease from the first quarter [6][7]. Loan and Deposit Performance - Total loans increased by 6.3% compared to the beginning of the year, with retail loans performing better than peers [6][7]. - Deposits grew by 6.5%, the highest among major banks, with a significant portion being retail deposits [6][7]. Asset Quality - The bank's asset quality is stable, with the new NPL generation rate decreasing by 7 basis points from the first quarter and by 11 basis points compared to the full year of 2023 [6][7]. - The coverage ratio for provisions remains stable at 326% [6][7]. Future Outlook - The bank is expected to have a revenue growth of +0.9% and a net profit growth of +0.4% in 2024, with a valuation of 0.55 times the 2024 price-to-book ratio [7]. - The dividend yield for 2023 is projected to be 5.64%, the highest among state-owned banks in A-shares [7].