PAB(000001) 申万宏源·2024-08-16 08:42Investment Rating - The report maintains a "Buy" rating for Ping An Bank [2] Core Views - The bank's performance and asset quality are in line with expectations, despite a decline in revenue [2] - The bank's net profit for the first half of 2024 increased by 1.9% year-on-year, while total revenue decreased by 13% [2][6] - The bank is focusing on optimizing its credit structure and reducing high-risk assets to ensure long-term healthy development [7] Financial Data and Earnings Forecast - Total revenue for 2024E is projected at 141,080.03 million, with a year-on-year growth rate of -14.34% [2] - The net profit attributable to shareholders is expected to be 46,986.28 million in 2024, with a growth rate of 1.14% [2] - The bank's return on equity (ROE) is projected to decline from 12.36% in 2024 to 9.69% by 2026 [2] - The bank's non-performing loan (NPL) ratio is expected to remain stable at 1.07% [2][7] Asset Quality and Risk Management - The bank's NPL ratio remained stable at 1.07% in Q2 2024, with a slight decrease in the NPL generation rate to 1.63% for the first half of 2024 [7][11] - The bank has increased its provision coverage ratio to 264% in Q2 2024, reflecting improved risk management [7] - The bank's strategy includes reducing high-risk retail loans and optimizing its credit structure to mitigate risks [6][7] Market Performance - As of August 15, 2024, the bank's closing price was 10.03 yuan, with a price-to-book (PB) ratio of 0.45 [1] - The bank's stock has shown a year-to-date performance that reflects the challenges in revenue generation but maintains a focus on long-term growth [2][6]