Ping An Securities·2024-10-31 07:47Investment Rating - The report maintains a "Recommended" rating for the company, indicating a positive outlook for its stock performance over the next six months [4][11]. Core Insights - The company reported a slight increase in net profit of 0.1% year-on-year for the third quarter of 2024, with total revenue reaching 626.4 billion yuan, reflecting a year-on-year decline of 3.8% [5][7]. - The annualized weighted average ROE stands at 9.77%, with total assets growing by 8.7% year-on-year to 48.4 trillion yuan [5][10]. - The bank's net interest margin stabilized at 1.43%, supported by a decrease in funding costs, which fell by 15 basis points to 1.81% [8][10]. Financial Performance Summary - Revenue and profit trends: The company's revenue for the first three quarters of 2024 decreased by 3.82% year-on-year, but the decline was less severe than in the first half of the year [7][12]. - Non-interest income showed significant growth of 17.5% year-on-year, contributing positively to the overall revenue performance [7][12]. - The bank's loan portfolio grew by 9.0% year-on-year, while deposits increased by 1.8% [5][10]. Asset Quality and Risk Management - The non-performing loan (NPL) ratio remained stable at 1.35%, indicating solid asset quality [10][11]. - The provision coverage ratio improved to 220%, reflecting the bank's strong risk mitigation capabilities [10][11]. Future Outlook - The report projects earnings per share (EPS) for 2024 to be 1.01 yuan, with expected growth rates of 0.5%, 4.0%, and 5.3% for the following years [6][11]. - The bank's stock is currently trading at a price-to-book (P/B) ratio of 0.59x for 2024, suggesting potential value for investors [11][12].