银行业周报：多家银行完成首笔SFISF回购业务，重定价周期调整方案有待公布

Investment Rating - The industry investment rating is "Outperform the Market" [2] Core Viewpoints - The central viewpoint is that the central bank's announcement to establish stock repurchase and increase re-lending is expected to stabilize the banking sector's interest margins, leading to a gradual stabilization in revenue growth and maintenance of current profit growth levels. Non-performing loan ratios are expected to remain low, and the provision coverage ratio is anticipated to stay high [3][4]. Summary by Sections 1. Recent Industry Performance - From October 18 to October 25, the banking sector experienced a decline of 1.72%, underperforming the CSI 300 index by 2.51 percentage points. State-owned banks fell by 2.71%, joint-stock banks by 1.24%, city commercial banks by 1.31%, and rural commercial banks by 1.41% [4][6]. - Individual stock performance showed Ningbo Bank increasing by 1.34%, while Industrial and Commercial Bank of China decreased by 3.16% [4][6]. 2. Recent Developments - Several banks have completed the first batch of SFISF repurchase transactions, which is expected to enhance the funding capabilities of non-bank institutions and support stock repurchase efforts, positively impacting the capital market [3]. - A batch adjustment of existing mortgage loan rates has been implemented, with most regions adjusting to the Loan Prime Rate (LPR) minus 30 basis points [3]. 3. Valuation Situation - As of October 25, the banking sector's projected price-to-book (PB) ratio for 2024 is 0.62 times, with state-owned banks at 0.62, joint-stock banks at 0.64, city commercial banks at 0.56, and rural commercial banks at 0.55 [12][13]. 4. Company Recommendations - Recommended companies include Hangzhou Bank (good asset quality, undervalued with high safety margin), Jiangsu Bank (high profit growth, excellent asset quality), Qilu Bank (good asset quality, undervalued), Suzhou Bank (good asset quality, rapid growth), China Merchants Bank (strong retail business, excellent asset quality), and Shanghai Rural Commercial Bank (superior geographical position, excellent asset quality) [3].