Ping An Securities·2025-04-24 13:37Industry Investment Rating - The investment rating for the banking industry is "Outperform" [1] Core Insights - The profitability of the six major state-owned banks improved marginally, with Agricultural Bank leading the growth at 4.7% year-on-year [2][9] - The overall asset quality remains stable, with a slight increase in retail risk, while the banks maintain a high level of provisioning coverage [2][87] - The banks continue to focus on strategic investments in technology and maintain a high dividend payout ratio of 30% [2][4] Summary by Sections Profitability Analysis - The net profit of the six major banks increased by 1.8% year-on-year, with Agricultural Bank showing the highest growth at 4.7% [2][9] - The average net interest margin for the six banks decreased by 15 basis points, with Postal Savings Bank leading at 1.87% [2][18] - Cost control measures are in place to manage the slowdown in revenue growth, with business and management expenses maintained at low growth rates [51][56] Asset Allocation - The asset scale of the six major banks grew by 7.9%, with loan growth at 8.1% [62] - The proportion of loans and securities investments increased, while deposit growth lagged behind loan growth [62][70] - Agricultural Bank benefited from county-level policies, achieving a loan growth rate of 10.2% [2][62] Risk Analysis - The overall asset quality is stable, with non-performing loan ratios generally declining [87] - Retail non-performing loans have increased, while corporate non-performing loans have decreased, indicating volatility in retail asset quality [87][90] - The provisioning coverage ratio remains high, ensuring adequate capital buffers [2][87] Dividend and Strategic Analysis - All six major banks maintained a stable dividend payout ratio of 30% [2][4] - The strategic focus includes support for five key areas, with continued high investment in technology [2][4] - The retail customer base is expanding, with Agricultural Bank leading in retail customer numbers [2][4]