银行：业绩稳中向好，行情攻守兼备

Investment Rating - The industry rating is "Outperform the Market" [8] Core Viewpoints - The banking sector shows stable performance with a favorable outlook, supported by a gradual improvement in asset growth rates and a stabilization of net interest margins [2][3][4] - The expected loan growth rate for financial institutions is projected to be 8.3% by the end of Q3 2024, with overall interest-earning asset growth for listed banks at 6.8% [2] - The net interest margin is expected to remain stable, with a reduced year-on-year decline, as the cost of interest-bearing liabilities continues to improve [3] - Revenue performance is anticipated to improve due to a low base in Q3 2023 and a slowdown in the decline of interest margins [4] - Profit growth is expected to remain steady, supported by stable asset quality and sufficient provisioning [4] Summary by Sections Volume - As of the end of August 2024, the growth rate of RMB loans by financial institutions is 8.5%, with a slowdown in the rate of decline [2] Price - The net interest margin remains stable, with a reduced year-on-year decline, and the asset yield decline has slowed significantly [3] Performance - Revenue is expected to improve due to a low base in Q3 2023 and a reduced drag from interest margin declines [4] - The non-performing loan ratio for commercial banks is 1.56%, down 3 basis points from the previous quarter, with a provisioning coverage ratio of 209%, up 5 percentage points [4] Investment Recommendations - The report recommends focusing on Shanghai Pudong Development Bank, which is in a turnaround phase with improving credit quality and increased lending activity [5] - Other banks to watch include China Merchants Bank, Jiangsu Bank, and Chongqing Bank [5]