平安银行：负债成本延续改善，息差降幅收窄

Investment Rating - The investment rating for Ping An Bank is "Buy (Maintain)" [5] Core Views - The report highlights that Ping An Bank's revenue for the first three quarters of 2024 was CNY 111.6 billion, a year-on-year decrease of 12.58%, while the net profit attributable to shareholders was CNY 39.7 billion, a slight increase of 0.24% [1][2] - The report indicates a continued improvement in liability costs, leading to a narrowing decline in net interest margin, which was recorded at 1.93% for the first three quarters [2] - The asset quality remains stable, with a non-performing loan (NPL) ratio of 1.06% and a provision coverage ratio of 251% as of the end of Q3 2024 [3][4] Performance Summary - Revenue growth rate and net profit growth rate for the first three quarters of 2024 were -12.6% and +0.2%, respectively, showing a slight narrowing of decline compared to the first half of the year [2] - Net interest income decreased by 20.6% year-on-year, but the decline was less severe than in the first half, attributed to improved liability costs [2] - The bank's fee and commission income saw a year-on-year decline of 18.5%, with wealth management fees dropping by 39.2% [2] Asset Quality - As of Q3 2024, the NPL ratio was 1.06%, with a slight decrease of 1 basis point from the previous quarter, while the provision coverage ratio decreased by 13 percentage points [3][4] - The NPL ratio for corporate loans was 0.74%, and for personal loans, it was 1.43%, with the latter showing a slight increase [4] Asset and Liability Management - Total assets and loan amounts as of Q3 2024 were CNY 5.75 trillion and CNY 3.38 trillion, respectively, with year-on-year growth rates of 4.2% and a decrease of 1.2% [9] - Total liabilities and deposits were CNY 5.26 trillion and CNY 3.59 trillion, respectively, with year-on-year growth rates of 4.1% and 2.5% [9] Business Overview - Retail customer base reached 127 million, with assets under management (AUM) growing to CNY 4.15 trillion [10] - The bank's proactive risk management and focus on asset quality have laid a solid foundation for medium to long-term development [10]