兴业银行（601166）：固本培元待焕新

Investment Rating - The report maintains an "Accumulate" rating for the company [5]. Core Views - The company achieved positive growth in both revenue and profit for the year 2024, with revenue growth of 0.7% and net profit growth of 0.1%, indicating a recovery from previous declines [2][3]. - The company has seen a significant decrease in deposit costs, with the interest rate on deposits falling to 1.98%, down 26 basis points year-on-year, which has helped stabilize the net interest margin [2][3]. - The non-performing loan (NPL) ratio decreased to 1.07% by the end of 2024, with an increase in the provision coverage ratio to 237.8%, suggesting improved asset quality [3][4]. - The company has consistently increased its dividend payout ratio, reaching 30.17% in 2024, with a dividend of 1.06 CNY per share, resulting in a dividend yield of approximately 4.93% [4]. Summary by Sections Performance - The company reported a total revenue of 212.226 billion CNY for 2024, with a slight increase from the previous year, and a net profit of 77.205 billion CNY, reflecting a modest recovery [9][13]. - The quarterly profit for Q4 2024 saw a significant increase of 16.9% year-on-year, indicating strong performance in the last quarter [2][3]. Non-Interest Income - The report highlights a continued decline in fee income, with a year-on-year decrease of 14.70% in Q1 2024, although other non-interest income showed some resilience [32]. Interest Margin and Funding - The net interest margin for 2024 was reported at 1.82%, with signs of stabilization in the first quarter of 2025, despite some pressure from loan repricing [2][3]. Asset Quality - The company has effectively managed its asset quality, with a reduction in the NPL balance to 61.48 billion CNY, down 6.4 billion CNY from the previous quarter [3][4]. - The provision for loan losses increased to 146.18 billion CNY, indicating proactive management of credit risk [3]. Capital and Shareholder Returns - The company has maintained a strong capital position, with a core Tier 1 capital adequacy ratio of 9.66% and a steady increase in dividend payouts, enhancing shareholder returns [4][9].