PAB(SZ:000001) Guotou Securities·2024-04-21 03:00Investment Rating - The investment rating for Ping An Bank is maintained at "Buy - A" with a 6-month target price of 13 CNY, reflecting a pessimistic expectation in the current valuation [3][8]. Core Insights - The report highlights that Ping An Bank's revenue growth rate for Q1 2024 is -14.03%, with a pre-provision profit growth rate of -14.96%. However, the net profit attributable to shareholders increased by 2.26% [1]. - The bank's net interest margin (NIM) has significantly narrowed to 2.01%, down 62 basis points year-on-year, which has notably impacted interest income [2][6]. - Non-interest income has shown positive growth of 4.9%, driven by gains in the bond market, although fee and commission income has decreased by 19.1% [6][8]. Financial Performance Summary - For Q1 2024, Ping An Bank's average daily balance of interest-earning assets grew by 2.01%, marking a decline in growth rate for seven consecutive quarters [1][11]. - The bank's total loans for Q1 2024 amounted to 746 billion CNY, a decrease of 357 billion CNY year-on-year, with significant growth in corporate loans but a decline in retail loans [1][12]. - The non-performing loan (NPL) ratio slightly increased to 1.07%, with a year-on-year rise in the NPL generation rate to 2.18% [6][17]. Asset Quality and Risk Management - The report indicates that the bank's risk coverage remains strong, with a provision coverage ratio of 261.66% despite a slight decrease [7][17]. - The bank is expected to continue reducing high-risk assets in retail lending, which may lead to further declines in loan balances [1][6]. Market Position and Outlook - Ping An Bank's market capitalization is approximately 207.45 billion CNY, with a circulating market value of 207.44 billion CNY [3]. - The report anticipates a challenging economic environment, projecting a revenue decline of 11.27% and a profit growth of only 0.06% for 2024 [8].