BANK OF QINGDAO(002948)2025-03-27 07:12Investment Rating - The investment rating for Qingdao Bank is "Buy" (maintained) [1] Core Views - Qingdao Bank's 2024 annual report shows a revenue of 13.5 billion, a year-on-year increase of 8.2%, and a net profit attributable to shareholders of 4.26 billion, up 20.2% year-on-year [2][3] - The bank's return on average equity (ROAE) stands at 11.5%, an increase of 0.8 percentage points year-on-year [2] Summary by Sections Financial Performance - In 2024, Qingdao Bank's revenue, pre-provision profit, and net profit attributable to shareholders grew by 8.2%, 7.1%, and 20.2% year-on-year, respectively [3] - The growth rates for net interest income and non-interest income were 6.4% and 13.6%, showing slight variations compared to previous quarters [3] - The bank's credit impairment losses as a percentage of operating income and cost-to-income ratio were 26.2% and 34.9%, both showing a year-on-year decline [3] Asset and Loan Growth - By the end of 2024, the growth rates for interest-earning assets and loans were 14.1% and 13.5%, respectively, indicating a steady increase in lending despite insufficient demand [4][5] - The bank's loan structure shifted towards higher-yielding assets, with new loans and financial investments increasing significantly [4] Deposit Growth - Qingdao Bank's interest-bearing liabilities and deposits grew by 13.3% and 11.9% year-on-year, with a notable trend towards term deposits [6] - The bank added 46 billion in deposits over the year, with a significant increase in term deposits compared to previous periods [6] Interest Margin and Non-Interest Income - The net interest margin for 2024 was 1.73%, reflecting a slight contraction due to lower loan rates and adjustments in deposit rates [7] - Non-interest income reached 3.6 billion, a year-on-year increase of 13.6%, driven by substantial growth in investment income [8] Asset Quality and Capital Adequacy - The non-performing loan ratio decreased to 1.14%, indicating stable asset quality [9] - By the end of 2024, the bank's capital adequacy ratios showed improvement, with the core tier one capital ratio at 9.1% [10] Earnings Forecast and Valuation - The bank's earnings per share (EPS) forecasts for 2025-2027 have been adjusted upwards, reflecting strong performance expectations [11] - The current stock price corresponds to a price-to-book (PB) ratio of 0.59 and a price-to-earnings (PE) ratio of 5.1 for 2025 [11]