PAB(000001) 国投证券·2024-08-16 01:30Investment Rating - The investment rating for Ping An Bank is maintained at "Buy - A" with a target price of 13 CNY, reflecting a pessimistic expectation in the current valuation [3][8]. Core Insights - Ping An Bank's revenue growth rate for 2024 is projected at -11.27%, with profit growth expected to be minimal at 0.06%. The bank is currently undergoing a restructuring of its balance sheet, which is impacting revenue growth [8][9]. - The bank's net interest margin (NIM) is under pressure, with a second-quarter NIM of 1.91%, down 10 basis points quarter-on-quarter and 56 basis points year-on-year, significantly affecting net interest income growth [2][6]. - Non-interest income showed strong performance, growing by 11.1% year-on-year in Q2, driven by bond investment income, although fee and commission income declined by 22.4% [6][8]. Financial Performance Summary - For the first half of 2024, Ping An Bank's revenue is expected to be 146.137 billion CNY, down from 164.699 billion CNY in 2023, with a revenue growth rate of -11.27% [9]. - The bank's net profit attributable to shareholders is projected to be 46.485 billion CNY for 2024, showing a slight increase from 46.455 billion CNY in 2023, with a net profit growth rate of 0.06% [9]. - The bank's asset quality remains stable, with a non-performing loan (NPL) generation rate of 1.81% for the first half of 2024, a decrease from previous quarters [7][18]. Loan and Asset Management - In Q2 2024, Ping An Bank's average daily interest-earning assets grew by 1.37% year-on-year, with a notable decline in credit growth, particularly in retail loans, which have been actively adjusted for risk [1][12]. - The bank's strategy focuses on increasing low-risk loans such as housing mortgages and new energy vehicle financing while reducing exposure to higher-risk credit products [1][2]. - The bank's total loans decreased by 686 million CNY in Q2 2024, indicating a cautious approach to lending amid economic uncertainties [12][14]. Market Position and Outlook - Ping An Bank is focusing on restructuring its asset and liability management to enhance quality and efficiency, with an emphasis on adjusting its loan structure [2][8]. - The bank's cost of interest-bearing liabilities improved by 10 basis points to 2.2% in Q2 2024, benefiting from lower costs in interbank liabilities and deposits [6][15]. - The outlook for the bank remains cautious, with expectations of continued pressure on asset yields and net interest margins due to weak credit demand and ongoing structural adjustments [6][8].