BANK OF QINGDAO(002948) 长江证券·2025-02-13 01:51Investment Rating - The investment rating for Qingdao Bank is "Buy" and is maintained [6]. Core Views - Qingdao Bank's revenue growth for the full year 2024 is 8.2% year-on-year, with a significant increase in net profit attributable to shareholders of 20.2%, indicating strong operational efficiency [2][4]. - The bank's total assets grew by 13.5% year-on-year, with loans and deposits also increasing by 13.5% and 11.9% respectively, reflecting robust growth in its balance sheet [2][4]. - Asset quality continues to improve, with a year-end non-performing loan (NPL) ratio decreasing to 1.14%, and the provision coverage ratio rising to 241% [2][4]. Summary by Sections Financial Performance - For 2024, Qingdao Bank's revenue growth was 8.2%, with a quarterly growth of 8.5% in Q4. The net profit attributable to shareholders increased by 20.2% year-on-year, with Q4 showing a remarkable 44.5% growth [2][4]. - The bank's operational efficiency is validated by the significant increase in net profit, driven by improved asset quality and reduced credit impairment costs [6]. Scale and Growth - Total assets increased by 13.5% year-on-year, with loans also growing by 13.5%. The bank's liabilities rose by 13.6%, with deposits increasing by 11.9% [2][4]. - The bank is focusing on key sectors such as manufacturing, green finance, and technology innovation, which supports its growth strategy [6]. Interest Margin - The net interest margin for the first three quarters was 1.75%, with a slight decline compared to previous periods. However, the bank's management of funding costs has shown effectiveness [6]. - The bank anticipates a narrowing of the decline in interest margins in Q4, with improvements expected in funding costs due to the maturity of high-rate deposits [6]. Asset Quality - The non-performing loan ratio decreased by 3 basis points to 1.14% at year-end, with a provision coverage ratio that increased by 15 percentage points [2][4]. - The bank's asset quality is expected to remain stable, with a projected non-performing loan generation rate of 0.54% for the first half of 2024 [6]. Investment Recommendations - The report suggests that Qingdao Bank's high growth in profits and improved operational quality validate the investment thesis. The bank is expected to maintain considerable profit growth in 2025, with a current A-share valuation of only 0.58 times the 2025 price-to-book ratio [6].