银行：LPR&存款降息落地

Investment Rating - The report maintains a positive investment recommendation for the banking sector, indicating a favorable outlook for the industry [1][2]. Core Insights - On October 18, 2024, major banks announced a reduction in deposit rates, with the most significant cuts in recent years, including a 5 basis point decrease in the demand deposit rate to 0.10% and a 25 basis point decrease across various fixed-term deposit rates [1][4]. - The Loan Prime Rate (LPR) was also reduced by 25 basis points, with the one-year LPR now at 3.10% and the five-year LPR at 3.60%, marking the largest single reduction since the LPR reform in 2019 [1][4]. - The adjustments in deposit rates and LPR are aligned with government policies aimed at supporting economic growth and are expected to positively impact the banking sector [2][5]. Summary by Sections Deposit Rate Changes - The report details the specific reductions in deposit rates, with the one-year and five-year fixed deposit rates now at 1.10% and 1.55%, respectively, reflecting a 25 basis point cut [1][4]. Impact on Net Interest Margin - The estimated one-time comprehensive impact on listed banks' net interest margin is approximately -3.1 basis points due to the reduction in deposit rates and LPR [2][6]. - Some banks may experience a positive impact on their net interest margin, particularly those with a higher proportion of fixed-term deposits [2][6]. Investment Recommendations - The report suggests focusing on banks that are expected to benefit from improved debt resolution expectations, such as Chongqing Rural Commercial Bank and Qilu Bank [2][8]. - It also highlights banks that are positioned well within the cyclical recovery, including Ningbo Bank and Hangzhou Bank [2][8]. - Additionally, banks with long-term dividend strategies, such as Agricultural Bank of China and Postal Savings Bank, are recommended for sustained investment [2][8].