营收增长回暖，资产质量稳健

Investment Rating - Strong Buy (Maintained) [3] Core Views - Revenue growth has rebounded, with asset quality remaining stable [3] - Other non-interest income drove the recovery in revenue, with overall profitability remaining robust [7] - Net interest margin (NIM) continues to face pressure, with deposit costs showing rigidity [7] - Asset quality remains stable, with provisioning levels slightly declining [9] - Retail transformation is progressing with high-quality development, and the company's high profitability is expected to be maintained [10] Financial Performance - In 2023, the company achieved operating revenue of 61.6 billion yuan, a year-on-year increase of 6.4%, and net profit attributable to shareholders of 25.5 billion yuan, a year-on-year increase of 10.7% [6] - The annualized weighted average ROE was 15.08%, a decrease of 0.48 percentage points year-on-year [6] - Total assets reached 2.71 trillion yuan, an increase of 14.6% compared to the beginning of the year, with loans and deposits growing by 19.8% and 20.8%, respectively [6] - The profit distribution plan for 2023 is a dividend of 6.00 yuan per 10 shares (tax included), with a dividend payout ratio of 15.99% [6] Revenue and Profitability - Other non-interest income increased by 15.7% year-on-year, driven by positive contributions from the bond market in Q4 and a low base in 2022 [7] - Fee and commission income decreased by 22.8% year-on-year due to weak demand for wealth management and fee reductions [7] - Net interest income grew by 9.0% year-on-year, although it slowed down compared to the first three quarters due to narrowing interest margins and adjustments in existing mortgage loan rates [7] Asset and Liability Structure - The net interest margin (NIM) at the end of 2023 was 1.88%, with both asset and liability sides contributing to the pressure on NIM [7] - The yield on interest-earning assets was 4.16%, with loan yields at 5.13%, both showing a decline compared to the first half of the year [7] - The cost of interest-bearing liabilities was 2.15%, with deposit costs at 2.01%, reflecting the rigidity of deposit costs due to increased term deposits [7] - The proportion of term deposits increased by 3.5 percentage points to 64% at the end of 2023, while the proportion of demand deposits decreased by 3.2 percentage points to 32% [7] Asset Quality - The non-performing loan (NPL) ratio remained stable at 0.76% at the end of 2023 [9] - The NPL formation rate was 0.87%, with a slight increase in retail business risk exposure and NPL write-offs [9] - The coverage ratio and loan-to-deposit ratio were 461% and 3.50%, respectively, both remaining at high levels [9] Future Outlook - The company is expected to maintain its leading profitability and asset quality in the long term, supported by its diversified equity structure, market-oriented governance mechanism, and stable management team [10] - The EPS for 2024-2026 is forecasted to be 4.10/4.49/4.95 yuan, with profit growth rates of 6.1%/9.6%/10.2% [10] - The PB ratios for 2024-2026 are expected to be 0.72x/0.64x/0.56x, reflecting the company's strong market position and profitability [10] Industry Comparison - The company's performance is compared to the CSI 300 Index, highlighting its strong position within the banking sector [3]