INDUSTRIAL BANK(601166) 兴业证券·2024-04-28 03:02Investment Rating - The report maintains a "Buy" rating for the company [1][5]. Core Insights - The company's revenue growth exceeded expectations, with a year-on-year increase of 4.2% in Q1 2024, while net profit attributable to shareholders decreased by 3.1% year-on-year [3][4]. - The narrowing decline in interest margins and growth in interest-earning assets contributed to the strong revenue performance [4]. - The bank's net interest income rose by 5.1% year-on-year, with loans increasing by 7.8% [4]. - The bank's cost control measures led to a significant reduction in the decline of fee-based income, which fell by 19% year-on-year, a notable improvement [4]. - Non-interest income increased by 16.2% year-on-year, primarily due to higher returns from bond-related financial assets [4]. Summary by Sections Revenue and Profitability - In Q1 2024, the company achieved operating income of 578 billion yuan, a 4.2% increase year-on-year, and a net profit of 243 billion yuan, down 3.1% year-on-year [3][4]. Loan and Deposit Performance - Total assets grew at a rate of 4.4%, with loans increasing by 7.8%. Corporate loans rose by 18% year-on-year, with over 210 billion yuan in new corporate loans issued in Q1 [4]. - Retail loans decreased by 0.6%, primarily due to declines in personal housing and consumer credit [4]. - Deposits increased by 4.8% year-on-year, with a slight decrease of 0.5% quarter-on-quarter, focusing on maintaining scale while reducing costs [4]. Interest Margin and Cost Management - The net interest margin for Q1 2024 was 1.87%, with a decrease of 2 basis points quarter-on-quarter and 10 basis points year-on-year, benefiting from lower deposit costs [2][4]. - The bank's deposit interest rate fell by 12 basis points year-on-year to 2.12%, indicating effective cost control [2][4]. Asset Quality and Capital Adequacy - The non-performing loan ratio remained stable at 1.07%, with a slight increase in the provision coverage ratio to 246% [2][4]. - As of the end of Q1 2024, the core Tier 1, Tier 1, and total capital adequacy ratios were 9.52%, 10.64%, and 13.70%, respectively [5]. Earnings Forecast - The EPS forecast for 2024 and 2025 has been slightly adjusted to 3.73 yuan and 3.79 yuan, respectively, with an estimated net asset value per share of 36.75 yuan by the end of 2024 [5].