SRCB(SH:601825) Yin He Zheng Quan·2025-04-30 15:26Investment Rating - The report maintains a "Recommended" investment rating for Shanghai Rural Commercial Bank (stock code: 601825) [1] Core Views - The bank has optimized deposit costs and achieved good credit growth at the beginning of the year. In 2024, the bank's revenue increased by 0.86% year-on-year, and net profit rose by 1.2% year-on-year, showing a gradual improvement since the first half of 2024 [5] - The bank's net interest income decreased by 2.86% in 2024 and by 5.21% in Q1 2025, primarily due to a decline in asset yield. However, the bank's net profit maintained a positive growth of 0.34% year-on-year in Q1 2025, supported by a significant reduction in impairment losses [5] - The bank's asset quality has improved significantly, particularly in real estate loans, while retail non-performing loan risks have increased. The non-performing loan ratio was 0.97% at the end of 2024, remaining stable compared to the previous year [5] Summary by Sections Financial Performance - In 2024, the bank's revenue was CNY 26,641.34 million, with a growth rate of 0.86%. The net profit attributable to shareholders was CNY 12,288.16 million, with a growth rate of 1.20% [40] - The bank's return on equity (ROE) was 10.35%, a decrease of 0.99 percentage points year-on-year [5] Loan and Deposit Growth - Total loans increased by 6.15% year-on-year in 2024, with corporate loans growing by 5.62% and retail loans by 1.3% [5] - Total deposits grew by 5.32% year-on-year in 2024, with personal deposits increasing by 9.75% [5] Non-Interest Income and Investment - Non-interest income in 2024 increased by 14.36% year-on-year, while in Q1 2025, it decreased by 11.82% due to fluctuations in investment income [5] - The bank's retail assets under management (AUM) grew by 6.63% year-on-year in 2024 [5] Asset Quality and Capital Adequacy - The non-performing loan ratio was 0.97% at the end of 2024, with a coverage ratio of 339.27% [5] - The core tier one capital adequacy ratio was 14.36% at the end of 2024 [5] Investment Recommendations - The bank has a strong regional advantage in Shanghai and is effectively leveraging its technology finance capabilities. The report suggests a focus on enhancing shareholder returns, with a proposed dividend payout ratio of 33.91% for 2024 [5]