Ping An Securities·2024-03-25 16:00Investment Rating - The investment rating for the company is "Strong Buy" (maintained) [4][14][29] Core Views - The company has demonstrated stable profit growth, with a year-on-year increase in net profit attributable to shareholders of 6.2% in 2023, reaching 146.6 billion yuan, despite a slight decline in operating income by 1.64% to 339.1 billion yuan [6][9][14] - The company has increased its dividend payout ratio to 35.01%, resulting in an attractive dividend yield of 6.29% based on the current stock price [6][14] - The company maintains a strong competitive advantage in the long term, with solid revenue capabilities and a leading position in the industry, despite short-term pressures from the macroeconomic environment [14][19] Summary by Sections Financial Performance - In 2023, the company achieved total assets of 11 trillion yuan, an increase of 8.8% year-on-year, with loans growing by 7.56% and deposits by 8.22% [6][13] - The annualized return on equity (ROE) was 16.22%, a decrease of 0.84 percentage points from the previous year [6][14] - The company reported a net interest margin of 2.15%, down from 2.19% in the previous year, reflecting ongoing pressure on interest income [10][19] Revenue and Profitability - The company's net interest income decreased by 1.63% year-on-year, while non-interest income also saw a decline of 1.66% [9][10] - The company’s earnings per share (EPS) for 2023 was 5.81 yuan, with forecasts for 2024-2026 at 6.08, 6.39, and 6.83 yuan respectively [8][14] Asset Quality - The non-performing loan (NPL) ratio at the end of 2023 was 0.95%, with a slight increase in the attention rate to 1.10% [20][19] - The company maintains a high provision coverage ratio of 438%, indicating strong risk mitigation capabilities [20][19] Market Position and Strategy - The company is focusing on maintaining a stable funding cost through a strategy centered on core deposits, which has helped keep the cost of liabilities stable [19][14] - The company is expected to continue leveraging its competitive advantages in retail banking and wealth management, particularly in the context of recovering retail demand [14][19]