QILU BANK(601665) 长江证券·2024-05-08 03:02Investment Rating - The investment rating for the company is "Buy" and is maintained [4]. Core Views - The company has shown high growth in profits and improvement in asset quality, with a 2023 revenue growth of 8.0% and a net profit growth of 18.0% [5]. - The loan portfolio continues to expand significantly, with a 16.7% year-on-year growth in 2023 and a 5.8% growth in Q1 2024 [5]. - The net interest margin remains resilient, with a slight decline to 1.74% in 2023, but is expected to maintain relative stability compared to peers [5]. - Non-interest income has turned positive, driven by bond investments, with a 42% increase in other non-interest income [6]. - The asset quality continues to improve, with a non-performing loan ratio of 1.25% at the end of Q1 2024, marking a consistent decline over nine quarters [6]. Summary by Sections Financial Performance - In 2023, the company achieved a revenue of 11,063.7 million, with a net profit of 3,587.4 million, reflecting strong operational performance [13]. - For Q1 2024, the revenue growth was 5.5%, and net profit growth was 16.0% [5]. Loan and Deposit Growth - The company’s loans grew by 16.7% year-on-year in 2023, with significant contributions from infrastructure and inclusive finance loans [5]. - Deposits increased by 13.9% in 2023, with personal deposits growing by 4.4% [5]. Asset Quality - The non-performing loan ratio decreased to 1.25% in Q1 2024, with a credit cost ratio of 1.33%, indicating improved asset quality [6]. - The provision coverage ratio stood at 305% at the end of Q1 2024, showing a strong buffer against potential loan losses [6]. Future Outlook - The company is expected to maintain a revenue growth of 5.5% and a net profit growth of 13.8% in 2024, supported by stable loan growth and improving credit costs [6].