兴业银行2023业绩点评：对公信贷支撑规模扩张，净息差有韧性

Investment Rating - The investment rating for the company is "Buy - A" with a target price of 22.25 CNY, indicating a potential upside from the current price of 15.78 CNY as of March 29, 2024 [4]. Core Views - The company's revenue growth for 2023 was -5.19%, with a decline in net profit attributable to shareholders of -15.61%. The performance was in line with expectations for revenue but below expectations for profit growth [1]. - The main drivers for the company's performance included an expansion in interest-earning assets, cost reductions, and a decrease in the tax rate, while narrowing net interest margins and increased provisioning pressures negatively impacted results [1][8]. - The company is focusing on expanding its corporate loans, particularly in sectors such as manufacturing, leasing, and business services, which saw significant growth [1][2]. Summary by Sections Financial Performance - For 2023, the company's total assets grew by 9.62% year-on-year, surpassing 10 trillion CNY, with total loans increasing by 9.59% [1]. - The net interest margin for 2023 was 1.93%, a decrease of 17 basis points year-on-year, with a quarterly net interest margin of 1.90% in Q4 2023 [3][8]. - The company reported a decline in non-interest income, with a 14.49% year-on-year decrease in Q4, primarily due to a significant drop in fee and commission income [8]. Loan and Deposit Structure - Corporate loans (excluding discounts) grew by 20.27% year-on-year, while retail loans showed a modest growth of 0.12% [2]. - The company's deposit balance increased by 8.45% year-on-year, with retail deposits accounting for 26.40% of total deposits by the end of 2023 [2]. Asset Quality - The non-performing loan (NPL) ratio stood at 1.07% at the end of 2023, with a provision coverage ratio of 245.21%, indicating a stable asset quality [8][15]. - The company has been actively managing its loan portfolio to mitigate risks, with a focus on maintaining a healthy balance between corporate and retail lending [1][8].