Bank of Chengdu(SH:601838) EBSCN·2024-04-25 02:32Investment Rating - The report maintains a rating of "Buy" for Chengdu Bank (601838.SH) with a current price of 14.24 CNY [1]. Core Insights - Chengdu Bank reported a strong momentum in scale expansion, with non-performing loans decreasing to historical lows [1]. - The bank's 2023 operating income reached 21.7 billion CNY, a year-on-year increase of 7.2%, while net profit attributable to shareholders was 11.67 billion CNY, up 16.2% year-on-year [4]. - For Q1 2024, the bank achieved operating income of 5.64 billion CNY, a 6.3% year-on-year growth, and a net profit of 2.85 billion CNY, reflecting a 12.8% increase year-on-year [4]. Financial Performance Summary - Revenue Growth: The revenue growth rates for 2023 and Q1 2024 were 7.2% and 6.3%, respectively [5]. - Net Profit Growth: The net profit growth rates for 2023 and Q1 2024 were 16.2% and 12.8%, respectively [5]. - Return on Equity (ROE): The weighted average ROE for 2023 was 18.78%, a decrease of 0.7 percentage points year-on-year [4]. Asset and Liability Management - Asset Expansion: In Q1 2024, the bank added 82.1 billion CNY in interest-earning assets, with a year-on-year growth rate of 19.5% [5]. - Loan Composition: The bank's new loans in Q1 2024 totaled 64.1 billion CNY, with corporate loans showing strong growth [5]. - Deposit Growth: The bank's new interest-bearing liabilities in Q1 2024 were 84.1 billion CNY, with a year-on-year increase of 23.1% [6]. Non-Interest Income and Profitability - Non-Interest Income: Non-interest income decreased by 1.2% year-on-year to 1.01 billion CNY in Q1 2024, with a notable decline in net other non-interest income [7]. - Net Interest Margin (NIM): The NIM for Q1 2024 was estimated at 1.71%, down 11 basis points from 2023 [7]. Asset Quality and Risk Management - Non-Performing Loan (NPL) Ratio: The NPL ratio decreased to 0.68% by the end of 2023, down 3 basis points from the previous quarter [8]. - Provision Coverage Ratio: The provision coverage ratio was 504.3% at the end of 2023, indicating strong risk mitigation capabilities [8]. - Credit Loss Provisions: The bank's credit loss provisions for Q1 2024 were 900 million CNY, a decrease of 1.3 billion CNY year-on-year [9]. Capital Adequacy - Capital Ratios: As of Q1 2024, the core Tier 1 capital ratio was 8.45%, and the total capital adequacy ratio was 13.07%, both showing improvements from the previous year [9][15]. - Risk-Weighted Assets (RWA): The year-on-year growth rate of RWA was 13.4%, a decrease of 7.9 percentage points from the previous year [9]. Valuation and Future Outlook - Earnings Per Share (EPS): The EPS forecast for 2024 is 3.31 CNY, reflecting an 8.3% decrease from previous estimates [9]. - Price-to-Book (P/B) Ratio: The current P/B ratios for 2024, 2025, and 2026 are projected at 0.73, 0.64, and 0.57, respectively [9]. - Dividend Policy: The bank plans to distribute a dividend of 0.90 CNY per share for 2023, with a dividend yield of 6.3% [9].