Ping An Securities·2024-10-30 07:00Investment Rating - The investment rating for the company is "Strong Buy" (maintained) [1][9][13] Core Views - The company's revenue decline has narrowed, and cost control efforts have intensified, with a year-on-year decrease in net profit of 0.62% and revenue down by 2.91% [4][9] - The asset quality remains stable, with a non-performing loan (NPL) ratio of 0.92% and a decrease in the NPL generation rate [8][9] - The company is expected to maintain its competitive advantage in the long term, particularly in retail and wealth management sectors [9] Summary by Sections Financial Performance - For the first three quarters of 2024, the company achieved operating revenue of 252.7 billion yuan, a year-on-year decrease of 2.91%, and a net profit attributable to shareholders of 113.2 billion yuan, down 0.62% year-on-year [3][4] - The total asset size reached 11.7 trillion yuan, growing 9.25% year-on-year, with loan and deposit scales increasing by 4.70% and 9.43% respectively [3][5] Revenue and Profitability - The net interest income decreased by 3.07% year-on-year, while non-interest income fell by 2.6%, with a notable decline in wealth management fees [4][5] - The cost-to-income ratio improved, decreasing by 0.5 percentage points to 29.58% due to effective cost management [4][5] Asset Quality - The NPL ratio decreased by 2 basis points to 0.92%, with the corporate sector showing improved asset quality [8][9] - The coverage ratio for provisions remains high at 432% despite a slight decrease [8][9] Future Outlook - The company is expected to face pressure on net interest margins due to ongoing interest rate adjustments, but it maintains a strong position in the retail banking sector [5][9] - Earnings per share (EPS) forecasts for 2024-2026 are 6.08, 6.39, and 6.83 yuan respectively, with corresponding profit growth rates of 4.5%, 5.2%, and 6.9% [9][11]