BOB(601169) 平安证券·2024-10-31 07:47Investment Rating - The report maintains a "Recommend" rating for Bank of Beijing (601169 SH) [4][9] Core Views - Bank of Beijing's performance in 2024 Q3 was in line with expectations, with steady growth in net profit and continued progress in retail transformation [2][5] - The bank's asset quality remained stable, with NPL ratio flat at 1 31% and provision coverage ratio rising to 210% [9] - Retail transformation is advancing, with private banking customers reaching 16 800, up 19 9% YoY, and private banking AUM growing 12 4% to 190 2 billion yuan [9] Financial Performance - In 2024 Q3, Bank of Beijing achieved operating income of 51 8 billion yuan, up 4 1% YoY, and net profit of 20 6 billion yuan, up 1 9% YoY [5] - Net interest income grew 2 7% YoY to 38 6 billion yuan, while fee and commission income fell 16 7% due to weak demand [6] - The bank's total assets reached 4 03 trillion yuan, with loans and deposits at 2 17 trillion yuan and 2 37 trillion yuan respectively [5] Asset Quality and Profitability - NIM improved by 1bp QoQ to 1 35% in Q3 2024, supported by lower funding costs [7] - ROE was 10 41% annualized, with EPS forecast at 1 27/1 34/1 42 yuan for 2024-2026 [9] - The bank's cost-to-income ratio stood at 27 78% in Q3 2024 [10] Retail Transformation Progress - Retail loans accounted for 33% of total loans, while corporate loans made up 60% [10] - The contribution rate of net new AUM from VIP and private banking customers reached 88% [9] - The bank's deposit structure improved, with current deposits accounting for 34% of total deposits [10] Valuation and Outlook - The bank's 2024-2026 P B ratios are 0 45x 0 41x 0 38x, indicating sufficient valuation margin of safety [9] - EPS growth is projected at 4 6% 5 4% 6 5% for 2024-2026 [9] - The report expects continued improvement in performance as historical risks are cleared and economic recovery boosts demand [9]