ZHONGTAI SECURITIES·2024-04-07 16:00Investment Rating - The report suggests a cautious investment rating for the company, with a focus on maintaining attention due to its high dividend yield and low valuation [4][24]. Core Insights - The company's performance in 2023 was strong, with a year-on-year revenue growth of 3.7% and a net profit increase of 2.4% [4][9]. - The bank achieved a net fee income growth of 5.3%, driven by improvements in remittance, settlement, and custody services, despite a decline in agency services [4][17]. - Asset quality remained stable, with a non-performing loan ratio of 1.27% and a provision coverage ratio that increased year-on-year [4][22]. Summary by Sections Financial Performance - Total revenue for 2023 was 584,236 million, with a year-on-year growth of 3.7% [4]. - Net profit reached 231,904 million, reflecting a 2.4% increase compared to the previous year [4]. - Earnings per share (EPS) for 2023 was 0.76, with a projected EPS of 0.77 for 2024 [4]. Asset and Liability Management - Total assets increased by 13.7% year-on-year, with loans growing by 13.7% and deposits by 13.4% [4][11]. - The bank's loan-to-deposit ratio was stable, with a focus on corporate loans, which accounted for 91.6% of new loans [12][16]. - The proportion of corporate loans in total loans increased to 35.9%, while the share of real estate loans decreased to 7.4% [16][22]. Non-Interest Income - Non-interest income grew by 13.3% year-on-year, with net fee income contributing positively [4][18]. - The bank's net fee income was 78,865 million in 2023, with expectations for continued growth in the coming years [25]. Future Outlook - The forecast for net profit in 2024 and 2025 is adjusted to 2,319 million and 2,346 million, respectively [24]. - The bank is expected to maintain a strong capital position, with a core Tier 1 capital ratio that has improved [21].