PAB(SZ:000001) EBSCN·2024-03-14 16:00Investment Rating - The report maintains a "Buy" rating for Ping An Bank (000001.SZ) with a current price of 10.23 CNY [1] Core Insights - In 2023, Ping An Bank achieved operating revenue of 164.7 billion CNY, a year-on-year decrease of 8.4%, while net profit attributable to shareholders was 46.5 billion CNY, an increase of 2.1% [5][10] - The bank's net interest margin for 2023 was 2.38%, down 9 basis points from the previous year, but is expected to improve in 2024 due to a reduction in deposit costs [7][10] - The bank's dividend payout ratio increased significantly to 30%, enhancing its attractiveness to investors with a projected dividend yield of 7% [9][10] Financial Performance - The total share capital is 19.406 billion shares, with a total market value of 1985.23 billion CNY [2] - The bank's absolute return over the past year was -19.70%, while the relative return was -9.05% [4] - The bank's weighted average return on equity (ROE) for 2023 was 11.38%, a decrease of 0.98 percentage points year-on-year [5] Revenue and Profit Structure - The decline in revenue was primarily due to a 9.3% decrease in net interest income and a 6.1% decrease in non-interest income [6] - The bank's non-interest income was affected by a 2.6% decline in net fee and commission income, totaling 29.4 billion CNY [9] Asset Quality and Capital Adequacy - The non-performing loan (NPL) ratio increased to 1.06%, with retail loan NPLs rising to 1.37% [9][15] - The bank's capital adequacy ratios remained stable, with a core tier 1 capital ratio of 9.22% and a total capital ratio of 13.43% [9][16] Future Outlook - The EPS forecast for 2024 is adjusted to 2.45 CNY, reflecting a decrease of 14.9% from previous estimates, with further projections for 2025 and 2026 at 2.54 CNY and 2.67 CNY respectively [10][11]