PAB(SZ:000001) Tianfeng Securities·2025-04-21 14:15Investment Rating - The investment rating for Ping An Bank is "Accumulate" with a target price of 12.75 CNY, representing a potential upside of 16% from the current price of 11.02 CNY [6][4]. Core Views - The report highlights a recovery in credit and deposits, with improvements in interest costs. The bank's revenue for Q1 2025 was approximately 33.7 billion CNY, down 13.05% year-on-year, while net profit attributable to shareholders was 14.1 billion CNY, down 5.60% year-on-year. The non-performing loan ratio stood at 1.06% with a provision coverage ratio of 237% [1][2][4]. Financial Performance Summary - Revenue and Profitability: In Q1 2025, net interest income was 22.8 billion CNY, accounting for 67.6% of total revenue, while non-interest income was 10.9 billion CNY, down 19.78% year-on-year. The pre-provision profit and net profit attributable to shareholders decreased by 12.92% and 5.60% year-on-year, respectively [2][10]. - Asset Quality: The non-performing loan balance was 36 billion CNY, with a non-performing loan ratio of 1.06%, unchanged from 2024. The ratio of non-performing and attention loans decreased by 15 basis points to 2.84% [3][22]. Asset and Liability Management - Asset Growth: The total interest-earning assets reached 5.59 trillion CNY, growing 1.1% year-on-year. The structure of interest-earning assets showed an increase in loans and interbank assets, while financial investments decreased [3][18]. - Liability Management: The interest-bearing liabilities amounted to 5.02 trillion CNY, with a year-on-year growth of 0.2%. Deposits grew by 6.2% compared to 2024, indicating significant improvement [3][21]. Profit Forecast and Valuation - The forecast for net profit attributable to shareholders for 2025-2027 is expected to grow by 0.81%, 2.92%, and 3.28%, respectively. The estimated book value per share (BPS) for these years is projected to be 23.24 CNY, 24.93 CNY, and 26.65 CNY [4][24].