PSBC(SH:601658) ZHONGTAI SECURITIES·2025-03-28 06:37Investment Rating - The report maintains an "Accumulate" rating for Postal Savings Bank [3] Core Views - The bank's revenue growth accelerated to +1.8% year-on-year in 2024, driven primarily by non-interest income, while net profit increased by +0.2% [5][10] - The bank's net interest income showed a year-on-year growth of +1.5%, with a slight narrowing of interest margins [5][10] - The bank's asset quality remains stable, with a non-performing loan ratio of 0.90% [22][23] Summary by Sections Financial Performance - Revenue for 2024 is projected at 348,695 million, with a growth rate of 1.8% year-on-year [3] - Net profit for 2024 is estimated at 86,479 million, reflecting a growth rate of 0.2% [3] - Earnings per share (EPS) is expected to be 0.87 for 2024 [3] Non-Interest Income - Non-interest income increased by +3.3% year-on-year, with other non-interest income growing by +15.3% [5][19] - Fee income decreased by -10.5% year-on-year, but the decline is showing signs of slowing down [5][19] Asset and Liability Management - Credit growth has shown signs of recovery, with new loans in Q4 2024 amounting to 133.8 billion, a year-on-year increase of 5.4 billion [15][16] - The proportion of demand deposits has increased, contributing to a decrease in funding costs [15][16] Asset Quality - The overall asset quality remains robust, with a non-performing loan generation rate of 0.84% for the year [22][23] - The bank's provision coverage ratio stands at 286.15%, indicating a strong buffer against potential losses [22][23] Investment Recommendations - The bank is expected to maintain a price-to-book (P/B) ratio of 0.60X in 2025, indicating a favorable valuation [28] - The bank's extensive network and retail focus provide a competitive advantage, making it a noteworthy investment opportunity [28]