PAB(000001) 国投证券·2024-08-16 01:43Investment Rating - The investment rating for Ping An Bank is maintained at "Buy - A" with a 6-month target price of 13 CNY [3]. Core Views - Ping An Bank's revenue growth is under pressure due to ongoing restructuring of its balance sheet, with a reported revenue decline of 12.95% in the first half of 2024 [1]. - The bank's net profit growth is modest, driven by reduced provisioning and growth in non-interest income, despite a significant contraction in net interest margin [1][2]. - The bank is focusing on "structural adjustment, quality improvement, and efficiency enhancement" as it continues to reshape its asset and liability structure [2]. Financial Performance Summary - For Q2 2024, the net profit growth was 1.5%, primarily supported by a decrease in provisioning and an increase in non-interest income, while net interest margin contracted significantly [1]. - The average daily balance of interest-earning assets grew by 1.37% year-on-year, with a notable decline in credit growth [1][9]. - Non-interest income increased by 11.1% year-on-year, benefiting from lower market interest rates and strong performance in bond investments [6]. - The bank's net interest margin for Q2 2024 was reported at 1.91%, down 10 basis points quarter-on-quarter and 56 basis points year-on-year [2][6]. Asset Quality and Risk Management - The non-performing loan (NPL) generation rate for the first half of 2024 was 1.81%, showing a decrease compared to the previous quarter [7]. - The bank's provisioning for credit impairment losses was 13.8 billion CNY in Q2 2024, a reduction of 23.1% year-on-year [7]. - The overall asset quality remains stable, with the NPL ratio holding steady at 1.07% as of Q2 2024 [17]. Future Outlook - The bank anticipates continued pressure on asset yields and net interest margin due to weak effective demand and ongoing structural adjustments [8]. - Revenue growth is projected to decline by 11.27% in 2024, with profit growth expected to be minimal at 0.06% [8].