Bank Of Shanghai(601229) 平安证券·2024-10-31 07:48Investment Rating - The report maintains a "Recommended" rating for Shanghai Bank (601229.SH) [3][10] Core Views - Shanghai Bank's revenue continues to improve, with a slight year-on-year increase of 0.7% in the first three quarters of 2024, and a net profit growth of 1.4% [4][6] - The bank's net interest margin has stabilized, with a slight increase in Q3 2024 compared to Q2 2024, indicating effective cost control on liabilities [7][10] - The bank is focusing on key regions such as the Yangtze River Delta and Greater Bay Area, enhancing its competitive advantage in retail banking [10] Financial Performance Summary - For the first three quarters of 2024, Shanghai Bank achieved operating income of 39.5 billion yuan and net profit attributable to shareholders of 17.6 billion yuan [4][11] - The annualized weighted average ROE stands at 10.39% as of Q3 2024 [4] - Total assets reached 3.23 trillion yuan, with total loans of 1.41 trillion yuan and total deposits of 1.75 trillion yuan [4][11] Revenue and Profitability Metrics - The bank's net interest income decreased by 8.3% year-on-year in Q3 2024, while non-interest income, particularly from investment-related activities, saw a significant increase of 113% [6][10] - The bank's EPS for 2024 is projected to be 1.57 yuan, with a corresponding P/E ratio of 4.9 [5][10] Asset Quality and Risk Management - As of Q3 2024, the non-performing loan (NPL) ratio decreased to 1.20%, indicating improved asset quality [9][14] - The provision coverage ratio increased to 277%, enhancing the bank's risk mitigation capabilities [9][14] Dividend and Valuation - The bank announced a mid-term dividend payout ratio of 30.67%, translating to a dividend yield of 5.97% based on the latest closing price [10] - The current valuation remains at historical lows, with a price-to-book (P/B) ratio projected at 0.48x for 2024 [10][12]