PAB(SZ:000001) CMS·2025-03-15 07:02Investment Rating - The report maintains a rating of "Buy" for Ping An Bank, with a target price of RMB 11.97 per share, reflecting a dynamic dividend yield of 5.4% [4][5]. Core Insights - Ping An Bank is currently undergoing a transformation phase, with a focus on optimizing its retail loan structure while continuing to support corporate lending to the real economy. The bank's total loan growth for 2024 is projected at -0.98%, primarily due to a 10.65% decrease in retail loans, although the quality of assets is improving [2][4]. - The bank's non-interest income has seen significant growth, with a 69% year-on-year increase in 2024, and a remarkable 123% increase in Q4 2024 alone, driven by trading gains and other financial activities [2][4]. Summary by Sections Financial Performance - For 2024, Ping An Bank reported a total revenue of RMB 146.7 billion, a decrease of 10.9% year-on-year. The profit before provisions (PPOP) and net profit attributable to shareholders also saw declines of 2.9% and 4.2%, respectively [1][9]. - The bank's net interest margin for 2024 was reported at 1.87%, reflecting a contraction of 6 basis points compared to the previous quarters, with a more significant decline of 22 basis points in Q4 2024 [3][12]. Asset Quality - As of Q4 2024, the non-performing loan (NPL) ratio stood at 1.06%, stable compared to the previous quarter, while the attention loan ratio decreased to 1.93% [3][12]. - The bank has increased its provision coverage ratio to 250.71%, indicating a robust buffer against potential loan losses [3][12]. Dividend and Shareholder Returns - The bank plans to distribute a cash dividend of RMB 6.08 per 10 shares for 2024, resulting in a dividend payout ratio of 27%, ensuring sustainable returns for shareholders [4][5]. Market Position - Ping An Bank's market capitalization is approximately RMB 232.3 billion, with a total share capital of 19.406 billion shares [5][9]. The bank's return on equity (ROE) for the trailing twelve months (TTM) is reported at 10.1% [5].