2024-11-01 07:32Investment Rating - The report gives a "Recommended" rating for the company [1][33]. Core Views - The company's revenue and net profit decline has narrowed, achieving positive growth in the third quarter of 2024. For the first nine months of 2024, the company reported operating income of 196.12 billion yuan, a year-on-year decrease of 1.39%, and a net profit attributable to shareholders of 68.69 billion yuan, down 0.69% year-on-year. The annualized weighted average ROE is 9.06%, a decrease of 0.77 percentage points year-on-year. In Q3 2024, revenue and net profit attributable to shareholders grew by 3.31% and 1.19% year-on-year, respectively, returning to positive growth compared to the previous quarter [2][10]. Summary by Sections Revenue and Profitability - For the first nine months of 2024, the company achieved a net interest income of 126.80 billion yuan, an increase of 2.15% year-on-year. In Q3 2024, the net interest income grew by 1.97% year-on-year. The annualized net interest margin (NIM) for the first nine months is 1.28%, remaining stable compared to the end of the previous year, with a slight decrease of 1 basis point compared to H1 2024. The company has managed to maintain a certain level of resilience in its interest margin despite downward pressure on loan and investment yields due to LPR cuts and declining market interest rates [3][12]. Credit and Asset Quality - As of the end of September 2024, the total loan amount increased by 6.1% compared to the end of the previous year. Corporate loans grew by 6.84%, maintaining a stable proportion of over 65%, while personal loans increased by 6.33%. The company’s non-performing loan (NPL) ratio is 1.32%, down 1 basis point from the end of the previous year, while the proportion of attention-class loans increased by 7 basis points to 1.58% [6][33]. Non-Interest Income - For the first nine months of 2024, the company reported non-interest income of 69.33 billion yuan, a year-on-year decrease of 7.27%, with the decline narrowing by 4.88 percentage points compared to the first half of the year. The intermediary business income was 29.35 billion yuan, down 13.96% year-on-year, primarily due to the impact of insurance fee policies and reduced fees for fund sales. Other non-interest income was 39.97 billion yuan, down 1.66% year-on-year, with investment income contributing 20.50 billion yuan, a decrease of 2.92% [5][22]. Capital Adequacy - The company’s core Tier 1 capital adequacy ratio is 10.29%, up 0.06 percentage points from the end of the previous year. The provision coverage ratio is 203.87%, an increase of 8.66 percentage points from the end of the previous year. The state plans to issue special government bonds to supplement the core Tier 1 capital of major banks, which is expected to enhance the company's capital adequacy and credit issuance capacity [6][33].