QILU BANK(601665) Xinda Securities·2024-10-31 09:20Investment Rating - The investment rating for Qilu Bank is "Accumulate," maintaining the previous rating of "Accumulate" [1]. Core Views - Qilu Bank reported a revenue of 9.485 billion yuan for the first three quarters of 2024, representing a year-on-year growth of 4.26%. The net profit attributable to shareholders reached 3.442 billion yuan, with a year-on-year increase of 17.19% [1]. - The bank's annualized weighted average return on equity (ROE) stands at 11.96%, an increase of 0.11 percentage points compared to the same period last year [1]. - The bank's total assets reached 668.1 billion yuan by the end of Q3 2024, showing a year-on-year growth of 17.5%, with a loan total of 332.5 billion yuan, up 13.3% year-on-year [1][2]. - Qilu Bank's focus on expanding its loan portfolio in areas such as inclusive finance, green finance, and manufacturing is expected to sustain its growth momentum [1][2]. Summary by Sections Financial Performance - For the first three quarters of 2024, Qilu Bank achieved an operating income of 9.485 billion yuan, a 4.26% increase year-on-year, and a net profit of 3.442 billion yuan, reflecting a 17.19% growth [1][2]. - The bank's net investment income and net fee income grew by 9.7% and 17.6% respectively, contributing significantly to revenue growth [1]. Asset Quality - As of Q3 2024, the non-performing loan ratio decreased to 1.23%, down 1 basis point from the previous quarter, indicating a continued downward trend in bad loans [1]. - The provision coverage ratio improved to 312.74%, up 3.5 percentage points from the previous quarter, enhancing the bank's safety margin [1]. Capital Adequacy - The core Tier 1 capital adequacy ratio was 10.26% at the end of Q3 2024, an increase of 0.03 percentage points from the previous quarter, indicating sufficient capital for future expansion [1][2]. - The bank's dividend payout ratio for 2023 was 26.7%, up 1.2 percentage points from the end of 2022, reflecting a commitment to shareholder returns [1]. Future Outlook - The forecast for net profit growth for Qilu Bank is 15.2%, 17.7%, and 17.3% for the years 2024 to 2026, with expected earnings per share (EPS) of 1.01 yuan, 1.19 yuan, and 1.38 yuan respectively [2].