BANK OF CHINA(601988) 国信证券·2025-03-26 14:13Investment Rating - The investment rating for the company is "Neutral" with a downgrade from a previous rating [5]. Core Views - The company achieved a revenue of 630.1 billion yuan in 2024, representing a year-on-year growth of 1.2%, and a net profit of 237.8 billion yuan, up 2.6% year-on-year. The fourth quarter saw a slight revenue decline of 0.3% but an 8.8% increase in net profit [1][4]. - The contribution from overseas business profits increased, with total profit amounting to 295 billion yuan, a decrease of 0.22% year-on-year. Domestic profits fell by 5.7%, contributing 73.3% to the total, while overseas profits grew by 17.5%, contributing 26.7% [1]. - Non-interest income grew significantly by 15.9% in 2024, accounting for 28.8% of total revenue, an increase of 3.7 percentage points year-on-year. However, net income from fees and commissions decreased by 2.9% [2]. - The asset quality remains stable with a non-performing loan ratio of 1.25%, down 2 basis points from the beginning of the year, and a provision coverage ratio of 200.6%, up 9 percentage points year-on-year [2]. Summary by Sections Financial Performance - In 2024, the company reported total revenue of 630.1 billion yuan, a 1.2% increase from 2023, and a net profit of 237.8 billion yuan, reflecting a 2.6% growth. The return on average assets (ROAA) was 0.75%, and return on average equity (ROAE) was 9.50%, both showing slight declines [1][4]. - The total assets reached 35.06 trillion yuan, with loans totaling 21.54 trillion yuan, marking growth of 8.1% and 8.2% respectively from the beginning of the year [2]. Profitability and Valuation - The projected net profits for 2025-2027 are 241.6 billion yuan, 249.4 billion yuan, and 267.3 billion yuan, with corresponding year-on-year growth rates of 1.6%, 3.2%, and 7.2% [3]. - The current stock price corresponds to a price-to-earnings (PE) ratio of 6.6x for 2025, 6.4x for 2026, and 6.0x for 2027, and a price-to-book (PB) ratio of 0.59x, 0.55x, and 0.52x respectively [3]. Asset Quality - The company maintains a stable asset quality with a non-performing loan ratio of 1.25% and a provision coverage ratio of 200.6%, indicating strong risk management practices [2][4].