CZBANK(601916) 海通国际·2024-10-30 09:03Investment Rating - The investment rating for Zheshang Bank is not explicitly stated in the provided documents, but the financial metrics suggest a valuation that may be considered attractive compared to industry averages, with a 2024E P/B of 0.5x and a 2024E P/E of 5.1x [4]. Core Insights - Zheshang Bank reported a revenue increase of 4.5% year-on-year for Q3 2024, with a pre-provision profit growth of 2.8%, while the net profit attributable to the parent decreased by 2.1% year-on-year [4][5]. - The annualized ROA for the first three quarters of 2024 was 0.55%, down by 0.08 percentage points, and the annualized ROE was 10.38%, down by 1.09 percentage points [4]. - The net interest margin (NIM) for Q1-3 2024 was 1.80%, reflecting a decline from the first half of 2024, with a single-quarter NIM of 1.56% in Q3 2024 [2][5]. - The non-performing loan (NPL) ratio remained stable at 1.43%, with a provision coverage ratio of 175.33%, which decreased by 2.79 percentage points [2][5]. Summary by Sections Financial Performance - For Q1-3 2024, revenue increased by 5.6% year-on-year, pre-provision profit grew by 4.0%, and net profit attributable to the parent rose by 1.2% [4]. - The cost-to-income ratio was reported at 27.9%, a decrease of 0.3 percentage points year-on-year, while operating expenses increased by 9.7% [3][5]. Interest Income and Asset Quality - Net interest income for Q1-3 2024 decreased by 1.0% year-on-year, with Q3 showing a smaller decline of 0.3% [2][5]. - Loan growth was 7.0% compared to the end of 2023, down from 11.9% year-on-year, while deposit growth was 2.4%, down from 6.7% year-on-year [2][5]. Other Income Sources - Net fee and commission income decreased by 2.8% year-on-year, while other net income increased by 34.0%, driven primarily by a 39.0% increase in investment income and a 66.6% increase in foreign exchange gains [3][5].