SRCB(SH:601825) INDUSTRIAL SECURITIES·2024-04-28 03:02Investment Rating - The report maintains an "Accumulate" rating for the company [1][6] Core Views - The company's revenue growth has slowed, primarily due to increased impairment provisions. In 2023, revenue and net profit attributable to shareholders grew by 3.1% and 10.6% year-on-year, respectively. In Q4 2023, revenue and net profit decreased by 1.5% and 12.7% year-on-year [2][4] - For Q1 2024, revenue and net profit attributable to shareholders increased by 3.7% and 1.5% year-on-year, respectively. The decline in net interest income by 2.0% is attributed to a decrease in loan growth to 6.5% and a slight decline in interest margins [2][4] Summary by Sections Financial Performance - In 2023, the company achieved operating income of 26.4 billion yuan, a year-on-year increase of 3.1%, and a net profit of 12.1 billion yuan, a year-on-year increase of 10.6%. For Q1 2024, operating income was 7.1 billion yuan, up 3.7% year-on-year, with a net profit of 3.6 billion yuan, up 1.5% year-on-year [3][4] Asset Quality - The non-performing loan (NPL) ratio slightly increased, remaining stable at the end of 2023, with a Q1 2024 increase of 2 basis points to 0.99%. The coverage ratio for provisions decreased to 405% at the end of 2023 and further declined to 382% in Q1 2024 [5][6] Loan Growth - Loan growth has slowed, with year-on-year increases of 6.4% in 2023 and 6.5% in Q1 2024. The total new loans for 2023 amounted to 40.9 billion yuan, with corporate loans contributing significantly [2][4] Interest Margin - The net interest margin for 2023 was 1.67%, a decrease of 16 basis points year-on-year. The loan yield decreased by 29 basis points to 4.24%, while the deposit cost rate fell by 5 basis points to 1.95% [2][4]