BANK OF CHINA(601988) 天风证券·2025-03-30 10:14Investment Rating - The investment rating for the company is "Buy" with a target price of 6.30 CNY, maintaining the current rating [6]. Core Views - The company has shown a steady improvement in profitability and asset quality, with a year-on-year increase in net profit of 2.56% for 2024 [2][4]. - The net interest income has seen a decline of 3.77% year-on-year, but the non-interest income has increased by 15.87%, indicating a shift in revenue structure [2][10]. - The average yield on interest-earning assets has decreased to 3.34%, while the cost of interest-bearing liabilities has improved to 2.12%, supporting the stability of net interest margins [14][15]. Financial Performance Summary - For 2024, the company achieved a revenue of approximately 630.1 billion CNY, reflecting a year-on-year growth of 1.16% [2][4]. - The net interest income for 2024 was 448.9 billion CNY, with a year-on-year decrease of 3.77% [2][10]. - Non-interest income reached 181.2 billion CNY, showing a significant growth of 15.87% year-on-year [2][10]. - The company's net profit for 2024 was 237.8 billion CNY, with a year-on-year increase of 2.56% [2][4]. Asset and Liability Management - As of the end of 2024, the total interest-earning assets amounted to 33.91 trillion CNY, growing by 3.4% from the first half of 2024 and 4.7% year-on-year [3][21]. - The interest-bearing liabilities reached 30.3 trillion CNY, marking a year-on-year growth of 4.8% [21][25]. - The structure of interest-bearing liabilities is primarily composed of deposits (78.8%), existing bonds (6.8%), interbank liabilities (10.8%), and borrowings from the central bank (3.7%) [21][25]. Asset Quality - The non-performing loan (NPL) ratio slightly increased to 1.25% by the end of 2024, down 2 basis points from the previous year [27][30]. - The loan provision coverage ratio stands at 200.6%, reflecting a year-on-year increase of 8.9 percentage points [29][30]. - The overdue loan ratio recorded at 1.19%, indicating a slight increase from the previous half-year [27][30].