Retail Strategy and Performance - The bank maintains a steadfast retail strategy, focusing on customer-centric approaches to drive high-quality and sustainable development in retail business [1] - As of the end of 2024, personal loan balance reached CNY 17,671.68 billion, with a significant reduction in high-risk loans and an increase in the proportion of mortgage loans by 4.0 percentage points to 62.8% [3] - The bank's net interest margin for 2024 was 1.87%, a decrease of 51 basis points year-on-year, primarily due to market interest rate declines and proactive reduction of high-risk retail assets [1] Corporate Business Overview - By the end of 2024, corporate loan balance was CNY 16,069 billion, reflecting a growth of 12.4% year-on-year, while corporate deposit balance was CNY 22,465 billion, up 2.1% [2] - The bank aims to enhance support for key sectors such as advanced manufacturing, green finance, and rural revitalization through focused financing efforts [2] Financial Performance - In 2024, the bank reported operating income of CNY 1,466.95 billion, a decline of 10.9% year-on-year, with net profit at CNY 445.08 billion, down 4.2% [4] - The bank's management expenses decreased by 11.7% to CNY 405.82 billion, while credit and other asset impairment losses fell by 16.4% to CNY 494.28 billion [4] Asset Quality and Risk Management - The personal loan non-performing loan (NPL) ratio decreased by 0.04 percentage points by the end of 2024, with specific NPL ratios for housing loans at 0.47%, credit card loans at 2.56%, and consumption loans at 1.35% [5] - The bank emphasizes differentiated risk management policies and proactive asset structure adjustments to enhance asset quality and support sustainable retail business development [5] Real Estate Loan Management - The bank's corporate real estate loan NPL ratio was 1.79% at the end of 2024, an increase of 0.93 percentage points year-on-year, primarily due to external environmental pressures [6] - Continuous monitoring and management of real estate loans are prioritized to mitigate risks associated with project financing [6] Dividend Policy - The bank plans to distribute cash dividends of CNY 6.08 per 10 shares for the year 2024, totaling CNY 117.99 billion, which represents 28.32% of the net profit attributable to ordinary shareholders [7] - The bank aims to enhance the stability and predictability of dividends while ensuring compliance with capital adequacy requirements [7]

Investment Rating - The report maintains an "Accumulate" rating for Ping An Bank (000001.SZ) with a current price of 11.97 CNY [1]. Core Insights - Ping An Bank's 2024 annual report shows a decline in operating income by 10.9% year-on-year to 146.7 billion CNY and a net profit attributable to shareholders of 44.5 billion CNY, down 4.2% year-on-year [3][4]. - The bank's net interest income decreased by 20.8% year-on-year, while non-interest income grew by 14% [4][10]. - The bank is undergoing a retail business transformation, with corporate banking becoming a key support for stabilizing net profit [5][6]. - The non-performing loan (NPL) ratio remained stable at 1.06%, with a provision coverage ratio above 250% [11][12]. Financial Performance Summary - For 2024, Ping An Bank's operating income and net profit decreased by 10.9% and 4.2% respectively, with a weighted average return on equity (ROE) of 10.08%, down 1.3 percentage points year-on-year [3][4]. - The bank's net interest margin (NIM) for 2024 was 1.87%, with a decrease of 6 basis points from the previous quarters [9]. - Non-interest income saw a significant increase, primarily driven by a 68.7% rise in net other non-interest income [10]. Asset Quality and Risk Management - The bank's NPL ratio held steady at 1.06%, with a slight increase in corporate NPLs and a decrease in retail NPLs [11][12]. - The bank has actively reduced high-risk retail loans, focusing on stable mortgage and secured lending [6][7]. - The provision for credit losses was 49.4 billion CNY for the year, a decrease of 16.4% year-on-year [11]. Capital Adequacy and Dividends - As of the end of 2024, the core tier 1 capital adequacy ratio was 9.12%, with a cash dividend payout ratio of 27%, slightly down from the previous year [12][15]. - The bank's total assets increased to 5.77 trillion CNY, with risk-weighted assets growing by 6.5% year-on-year [27][28]. Earnings Forecast and Valuation - The earnings per share (EPS) forecast for 2025 and 2026 has been revised down to 2.24 CNY and 2.26 CNY respectively, with a new forecast for 2027 at 2.30 CNY [12][15]. - The current price-to-book (PB) ratio is projected at 0.51 for 2025, 0.48 for 2026, and 0.45 for 2027 [12][15].