Chongqing Rural Commercial Bank(601077) 海通国际·2024-10-30 07:48Investment Rating - The report assigns a 2024E P/B of 0.5x and a 2024E P/E of 5.7x for Chongqing Rural Commercial Bank, with a TTM dividend yield of 5.0% [1][5]. Core Insights - In Q3 2024, Chongqing Rural Commercial Bank reported a year-on-year revenue decline of 2.7%, with pre-provision profit down 2.4% and net profit attributable to shareholders down 0.6% [1][5]. - For the first three quarters of 2024, revenue decreased by 1.8% year-on-year, while pre-provision profit and net profit attributable to shareholders both increased by 3.6% [1][5]. - The annualized ROA for the first three quarters of 2024 decreased by 0.02 percentage points to 0.95%, and the annualized ROE decreased by 0.54 percentage points to 11.16% [1][5]. - The core tier 1 capital adequacy ratio increased by 0.64 percentage points year-on-year to 13.83% [1][5]. - The bank announced a mid-term dividend of ¥0.1944 per share (before tax), corresponding to a payout ratio of 30.0% [1][5]. Revenue and Profitability - In Q3 2024, net interest income decreased by 4.8% year-on-year, but improved from a decline of 8.0% in H1 2024 [2]. - The net interest margin (NIM) for Q1-3 2024 was 1.61%, down 2 basis points from H1 2024, while the estimated NIM for Q3 2024 was stable at 1.51% [2]. - The bank's net fee and commission income for the first three quarters of 2024 decreased by 9.7%, showing slight improvement from a 9.4% decline in H1 2024 [3][5]. Asset Quality - The non-performing loan (NPL) ratio improved to 1.17%, down 2 basis points quarter-on-quarter, continuing a downward trend since the end of 2020 [3][5]. - The provision coverage ratio decreased to 358.59%, down 1.7 percentage points quarter-on-quarter [3][5]. Loan and Deposit Growth - Total loans increased by 5.7% compared to the end of 2023, with corporate loans growing by 9.1% and personal loans by 0.7% [2]. - Total deposits rose by 4.9%, driven by an 8.5% increase in personal deposits, while corporate deposits fell by 13.9% [2].