QILU BANK(601665)2024-10-31 06:41Investment Rating - The investment rating for Qilu Bank is not explicitly stated in the provided documents, but the financial metrics suggest a favorable outlook with a P/B of 0.7x and a P/E of 5.3x compared to industry averages of 0.6x and 5.4x respectively [1][5]. Core Insights - Qilu Bank reported a year-on-year revenue increase of 1.7% in Q3 2024, with a pre-provision profit increase of 0.4% and a net profit attributable to shareholders rising by 17.7% [1][5]. - For the first three quarters of 2024, revenue increased by 4.3%, pre-provision profit by 3.1%, and net profit by 17.2% [1][5]. - The annualized ROE for Q1-Q3 2024 increased by 0.11 percentage points to 11.96%, and the core Tier 1 capital adequacy ratio rose by 0.53 percentage points to 10.26% [1][5]. - The net interest margin (NIM) was under pressure, with a decrease in the yield on interest-earning assets greater than the cost of interest-bearing liabilities [2][6]. - The non-performing loan (NPL) ratio decreased to 1.23%, and the special mention ratio fell to 1.12%, indicating improved asset quality [3][6]. Summary by Sections Financial Performance - Qilu Bank's Q3 2024 net interest income decreased by 2.0% year-on-year, with a calculated NIM of 1.37%, down 3 basis points from the previous quarter [2][6]. - Total loans increased by 10.8% compared to the end of 2023, with corporate loans contributing 71% of the loan growth [3][6]. - The bank's deposit growth was 9.5%, lower than the previous year's 15.6% [3][6]. Asset Quality - The NPL ratio decreased by 1 basis point to 1.23%, and the attention ratio decreased by 2 basis points to 1.12%, both better than industry averages [3][6]. - The provision coverage ratio improved to 312.74%, up 3.49 percentage points [3][6]. Income Sources - Net fee and commission income for Q1-Q3 2024 increased by 17.6% year-on-year, up from 11.7% in H1 2024 [3][6]. - Other net income rose by 29.8%, with investment income increasing by 9.7% and fair value changes rising by 227.9% [3][6]. Cost Management - The cost-to-income ratio for Q1-Q3 2024 was 25.32%, an increase of 0.56 percentage points year-on-year, with operating expenses rising by 7.5% [3][6].