INDUSTRIAL BANK(SH:601166) EBSCN·2025-03-29 11:13Investment Rating - The report maintains an "Accumulate" rating for the company [1] Core Views - The company has achieved revenue growth and profitability, with a 0.7% year-on-year increase in operating income to 212.2 billion and a 0.1% increase in net profit attributable to shareholders to 77.2 billion [5][12] - The company is focusing on five new strategic areas, enhancing its layout in key sectors [6][13] - The company’s net interest margin for 2024 is reported at 1.82%, showing a decline compared to previous periods [9][10] Revenue and Profitability - The company’s revenue growth rate for 2024 is 0.7%, with a year-on-year increase in pre-provision profit of 1.2% and net profit of 0.1% [5] - The net interest income and non-interest income growth rates are 1.1% and -0.3%, respectively [5] - The company’s return on average equity (ROAE) is 9.9%, down 0.8 percentage points year-on-year [5] Asset and Loan Growth - By the end of 2024, the company’s interest-earning assets and loans grew by 3.5% and 5% year-on-year, respectively [6] - The company’s loan growth was driven by corporate loans, which increased by 8.8% year-on-year [7] - Retail loan growth was 0.7%, indicating a gradual recovery in retail lending [7] Deposit and Funding Structure - The company’s interest-bearing liabilities and deposits grew by 2.4% and 7.7% year-on-year, respectively [8] - The proportion of deposits to interest-bearing liabilities is stable at 59% [8] - The company has optimized its deposit structure, with an increase in low-cost settlement funds [8] Asset Quality and Risk Management - The non-performing loan (NPL) ratio decreased to 1.07% by the end of 2024, while the overdue rate increased slightly [11] - The company’s provision coverage ratio is reported at 237.8%, indicating strong risk mitigation capabilities [12] - The company’s credit cost is 0.92%, down 0.36 percentage points year-on-year [11] Capital Adequacy - The core tier 1 capital adequacy ratio is 9.8%, with an increase of 5 basis points from the previous quarter [12] - The company’s total capital adequacy ratio stands at 14.3%, reflecting a solid capital position [12] Earnings Forecast and Valuation - The report adjusts the earnings per share (EPS) forecast for 2025-2026 to 3.72 and 3.73 yuan, respectively [13] - The current stock price corresponds to a price-to-book (PB) ratio of 0.54 and a price-to-earnings (PE) ratio of 5.78 for 2025 [13]