ZJB(SH:601860) Tai Ping Yang·2024-05-09 02:30Investment Rating - The report assigns an "Accumulate" rating for Zijin Bank, with a target price based on the last closing price of 2.67 [1]. Core Views - The report highlights that Zijin Bank's 2023 annual report shows a stable profitability with a slight decline in revenue but an increase in net profit. The bank's focus on agricultural and small micro-businesses has led to significant growth in these areas [7][9]. - The bank's total assets reached 2476.64 billion, with a year-on-year increase of 10.21%. Deposits and loans also saw substantial growth, indicating a robust financial position [7][9]. - The risk control capabilities of the bank have been enhanced through the use of big data technology, resulting in a non-performing loan ratio of 1.16% and a provision coverage ratio of 247.25% [7][9]. Summary by Relevant Sections Financial Performance - In 2023, Zijin Bank achieved operating income of 44.20 billion, a decrease of 1.93% year-on-year, while net profit attributable to shareholders was 16.19 billion, an increase of 1.16% [7][9]. - The bank's return on equity (ROE) was 9.10%, down by 0.54 percentage points year-on-year [7]. Business Growth - The balance of agricultural and small micro-loans reached 1092.54 billion, an increase of 153.12 billion from the beginning of the year, accounting for 61.59% of the total loan portfolio, up by 3.03 percentage points [7]. - The number of small micro-enterprise loan accounts increased to 27,664, with a year-on-year growth of 14.75% [7]. Asset and Liability Management - Total assets at the end of 2023 were 2476.64 billion, with an increase of 229.42 billion year-on-year [7]. - The deposit balance was 1967.74 billion, up by 208.62 billion, and the loan balance was 1772.22 billion, an increase of 169.26 billion [7]. Risk Management - The bank has established a comprehensive risk control system, leveraging big data technology to enhance its risk management capabilities [7]. - The non-performing loan ratio was reported at 1.16%, a decrease of 4 basis points year-on-year, while the provision coverage ratio improved by 0.59 percentage points to 247.25% [7].