EBSCN·2024-03-28 16:00Investment Rating - The report maintains a "Buy" rating for the company [1] Core Views - The company is steadily advancing its "Three Major Strategies," demonstrating strong resilience in performance growth [1][12] - The company reported a slight decline in revenue growth but stable profit growth, with total revenue of 769.7 billion and net profit of 332.7 billion, reflecting year-on-year growth rates of -1.8% and 2.4% respectively [3][4] - The annualized weighted average return on equity (ROAE) stands at 11.56%, down 0.7 percentage points year-on-year [3] Revenue Performance - The company's revenue, pre-provision profit, and net profit growth rates for the year were -1.8%, -2.2%, and 2.4% respectively, with quarterly performance showing a revenue decline of 3.5% and a net profit increase of 0.3% in Q4 [4] - Net interest income and non-interest income growth rates were -4.1% and 8.9% respectively, with non-interest income showing marginal improvement [4][9] Credit and Loan Performance - As of the end of 2023, total assets, interest-earning assets, and loans grew by 10.8%, 10.8%, and 12.6% respectively, indicating steady expansion [5] - The company’s loan growth in Q4 was 2.094 billion, with significant contributions from housing leasing and green loans, which grew by 34.4% and 41.2% respectively [5] Deposit Trends - Total liabilities, interest-bearing liabilities, and deposits grew by 10.8%, 11.5%, and 10.6% respectively, with a notable decrease in deposits in Q4 [6] - The trend towards term deposits continues, with term deposits accounting for 55.4% of total deposits by the end of Q4 [6] Asset Quality and Risk Management - The non-performing loan (NPL) ratio remained low at 1.37%, with a year-end NPL balance of 325.3 billion [10] - The company maintains a strong risk compensation ability, with a provision coverage ratio of 240% [11] Capital Adequacy - The core tier one capital ratio, tier one capital ratio, and total capital ratio were approximately 13.2%, 14%, and 18% respectively, indicating a solid capital position [11] Earnings Forecast and Valuation - The company’s earnings per share (EPS) for 2024-2026 are projected at 1.34, 1.36, and 1.40 respectively, with current price-to-book (PB) and price-to-earnings (PE) ratios indicating attractive valuation [12][14]