PAB(000001) EBSCN·2024-10-21 00:11Investment Rating - The report maintains a rating of "Accumulate" for Ping An Bank with a current price of 12.04 CNY [1]. Core Views - Ping An Bank's revenue for the first three quarters of 2023 was 111.6 billion CNY, a year-on-year decrease of 12.6%, while net profit attributable to shareholders was 39.7 billion CNY, showing a slight increase of 0.2% [3][4]. - The bank's net interest income decreased by 20.6% year-on-year, but the decline was less severe compared to the first half of 2024 [4]. - Non-interest income grew by 7.6% year-on-year, primarily driven by a significant increase in net other non-interest income [6]. - The bank's non-performing loan (NPL) ratio slightly decreased to 1.06% as of the end of Q3 2024, indicating effective asset management [6][7]. Summary by Sections Revenue and Profitability - For the first three quarters of 2023, Ping An Bank reported a revenue of 111.6 billion CNY, down 12.6% year-on-year, and a net profit of 39.7 billion CNY, up 0.2% year-on-year [3][4]. - The weighted average return on equity (ROE) was 12.2%, a decrease of 0.95 percentage points year-on-year [3]. Loan and Asset Quality - As of Q3 2024, the bank's interest-earning assets grew by 4.4% year-on-year, with public loans increasing by 21.1% while retail loans decreased by 12.7% [4][6]. - The NPL ratio was 1.06%, down 1 basis point from the previous quarter, with a total of 477 billion CNY in loans written off in the first three quarters [6][7]. Non-Interest Income - Non-interest income reached 39.1 billion CNY, with a year-on-year growth of 7.6%, supported by a 52.6% increase in net other non-interest income [6][8]. Capital Adequacy - As of Q3 2024, the core Tier 1 capital adequacy ratio remained stable at 9.33%, with total capital adequacy ratio at 13.39% [7][19]. Earnings Forecast and Valuation - The earnings per share (EPS) forecasts for 2024-2026 have been adjusted to 2.40, 2.45, and 2.56 CNY respectively, with the current stock price corresponding to a price-to-book (PB) ratio of 0.54, 0.50, and 0.46 [7][8].