Tai Ping Yang·2024-05-22 05:00Investment Rating - The report maintains a "Buy" rating for Postal Savings Bank of China (601658) with a target price based on the last closing price of 5.06 [1]. Core Insights - The bank demonstrated strong revenue resilience with a 2023 revenue of 342.51 billion yuan, a year-on-year increase of 2.25%, and a Q1 2024 revenue of 89.43 billion yuan, up 1.44% year-on-year [2][4]. - The bank's net interest margin remains competitive at 1.92%, despite a slight decrease of 9 basis points from the end of 2023 [2]. - The bank's asset quality is strong, with a non-performing loan ratio of 0.84% as of Q1 2024, and a provision coverage ratio of 326.87% [2]. Summary by Sections Financial Performance - In 2023, the bank achieved a net profit of 86.27 billion yuan, reflecting a year-on-year growth of 1.23%. For Q1 2024, the net profit was 25.93 billion yuan, showing a decline of 1.35% year-on-year [2][4]. - The bank's total assets reached 15.73 trillion yuan in 2023, a year-on-year increase of 11.80%, with customer loans totaling 8.15 trillion yuan, up 13.02% [2]. Revenue and Profitability - The bank's interest income for Q1 2024 was 71.57 billion yuan, a year-on-year increase of 3.13%, contributing significantly to revenue growth [2]. - The average yield on customer loans was 4.13%, while the interest rate on customer deposits was 1.53%, resulting in a net interest margin of 2.01% [2]. Growth Projections - Revenue projections for 2024-2026 are 348.67 billion yuan, 366.36 billion yuan, and 390.51 billion yuan, respectively, with corresponding net profits of 87.58 billion yuan, 91.09 billion yuan, and 96.19 billion yuan [2][4]. - The book value per share (BVPS) is expected to grow from 10.61 yuan in 2024 to 12.76 yuan in 2026, with price-to-book (PB) ratios decreasing from 0.48 to 0.40 [2][4].