Investment Rating - The investment rating for Chongqing Bank is "Cautious Accumulate" [5]. Core Views - Chongqing Bank's 2023 performance shows stable growth with continuous improvement in asset quality. The bank is strategically located in the core area of the Chengdu-Chongqing economic circle, benefiting from rapid regional economic development. The retail loan structure has been effectively adjusted [3][4]. - As of the end of 2023, the core Tier 1 capital adequacy ratio stands at 9.78%, and the cash dividend rate has remained high and stable over the past three years, with the H-share dividend yield approaching 10%, indicating a high investment value [3][4]. - In Q4 2023, both revenue and profit growth improved, leading to stable annual performance, with a slight revenue decline of 1.9% and a minor net profit increase of 1.3%. Notably, Q4 2023 revenue grew by 5.5% year-on-year, primarily driven by a significant increase of 410% in other non-interest income [3][4]. Financial Summary - For the fiscal year 2023, Chongqing Bank reported a revenue of 13,211 million RMB, reflecting a decrease of 1.9% compared to the previous year. The net profit for the same period was 4,930 million RMB, showing a slight increase of 1.3% [4]. - The bank's price-to-earnings (PE) ratio is 3.01, and the price-to-book (PB) ratio is 0.29, indicating a relatively low valuation compared to historical levels [4]. Loan and Asset Quality - In Q4 2023, Chongqing Bank's net loan increase was 6.6 billion RMB, with a focus on higher quality loans. The total loan growth for the year was 11.3%, an increase of 0.4 percentage points from 2022, with 52% of new loans directed towards leasing and business services, and 10% towards infrastructure [3][4]. - The non-performing loan (NPL) ratio at the end of Q4 2023 rose slightly to 1.34%, but both the attention rate and overdue rate decreased compared to mid-year levels, indicating an overall improvement in asset quality [3][4].
重庆银行2023年报点评：业绩平稳，资产质量持续改善