INDUSTRIAL BANK(601166) 国投证券·2025-03-31 05:59Investment Rating - The investment rating for the company is "Buy-A" with a target price of 26.01 CNY over the next six months [4]. Core Views - The company reported a revenue growth of 0.66% for 2024, with a pre-provision profit growth of 1.24% and a net profit growth of 0.12%. The fourth quarter saw a significant year-on-year net profit growth of 16.85%, primarily supported by the release of provisions, although tax increases and narrowing interest margins negatively impacted performance [1][10]. - The asset growth remained stable, with total assets increasing by 3.44% year-on-year by the end of 2024. Total loans grew by 5.05%, although corporate loan growth was weak [1][2]. - The bank's net interest margin for the fourth quarter was measured at 1.76%, showing a decline compared to previous periods. The yield on interest-earning assets decreased to 3.62% [3][9]. Summary by Sections Revenue and Profitability - The company achieved a total revenue of 212.226 billion CNY in 2024, with a slight increase in net interest income [13]. - The net profit attributable to the parent company was 77.205 billion CNY, reflecting a minimal growth of 0.12% year-on-year [13][10]. Asset and Liability Management - By the end of 2024, the total deposits increased by 7.69%, with retail deposits making up 28.28% of total loans. The trend towards more stable deposits was noted, with a decrease in the proportion of time deposits [2][9]. - The bank's loan structure improved, with corporate loans growing by 8.76% year-on-year, although the fourth quarter saw a decrease in new corporate loans [2][10]. Interest Margin and Non-Interest Income - The net interest margin is under pressure, with a forecasted decline in 2025 expected to be similar to 2024. The bank is focusing on managing deposit costs to stabilize the interest margin [3][10]. - Non-interest income decreased by 4.39% year-on-year in the fourth quarter, primarily due to declines in credit card and agency business revenues [9][10]. Asset Quality - The non-performing loan ratio remained stable at 1.07% by the end of 2024, with a provision coverage ratio of 237.78%, indicating a strong buffer against potential loan losses [9][10]. - The bank's credit quality is expected to improve gradually, with risks from local government bonds and credit cards anticipated to stabilize [10][13].