Investment Rating - The industry investment rating is "In line with the market" [1][23][26] Core Viewpoints - The banking sector's performance showed a marginal recovery in growth rates, with a focus on the effectiveness of policies [1][19] - The overall valuation of the banking sector has declined, with a price-to-earnings (P/E) ratio of 5.79X, representing a 68.24% discount compared to the A-share market [4][11] - The report highlights that the net interest margin is expected to remain stable but slightly decrease, while asset quality is overall stable [5][23] Summary by Sections Market Review - In October, the banking sector recorded a decline of -2.51%, underperforming the Shanghai Composite Index by 0.81 percentage points and outperforming the CSI 300 Index by 0.65 percentage points [9][10] - The banking sector ranked 23rd among 31 primary industries in terms of monthly performance [9] Market Interest Rates - The yields on interbank certificates of deposit (CDs) have decreased, with AAA-rated 1M/3M/6M yields at 1.68%, 1.90%, and 1.93%, respectively [4][15] - The average interbank borrowing rate in October was 1.59%, down 18 basis points month-on-month [5][17] Industry Review - The one-year and five-year LPR rates were reduced by 25 basis points to 3.10% and 3.60%, respectively [19][20] - The performance of listed banks showed a slight recovery in net profit growth, with a year-on-year increase of 1.4% in the first three quarters of 2024 [20] Investment Recommendations - The report suggests focusing on high-quality banks with solid fundamentals, such as China Construction Bank, China Merchants Bank, and Ningbo Bank, which are expected to benefit from high dividends and risk-averse sentiment [5][23]
银行业2024年11月月报：业绩增速边际回升，持续关注政策效能
Caixin Securities·2024-11-08 05:59