CM BANK(600036) 中泰证券·2024-11-01 03:11Investment Rating - The report maintains a rating of "Accumulate" for the company [2][5][44]. Core Insights - The company's revenue and profit growth are showing signs of recovery, with a cumulative revenue decline of 3.2% year-on-year for Q3 2024, an improvement from a 3.4% decline in the first half of 2024. Net profit decreased by 0.6% year-on-year, compared to a 1.3% decline in the first half of 2024 [2][9]. - The net interest income has shown a slight recovery, with a quarter-on-quarter increase of 0.8 percentage points, supported by a stable growth in interest-earning assets [3][12]. - The asset quality remains robust, with a non-performing loan (NPL) ratio stable at 0.94% and a provision coverage ratio of 432.15%, indicating a strong safety margin [30][32][34]. Revenue and Profit Growth - Cumulative revenue for Q3 2024 is down 3.2% year-on-year, while net interest income has decreased by 3.1% and non-interest income by 3.4%. The net fee income has seen a significant decline of 16.9%, but other non-interest income has increased by 30.9% [2][9][22]. - The growth in net interest income is supported by a stable interest margin, with the annualized yield on interest-earning assets decreasing by 7 basis points to 3.49% [3][12]. Asset and Liability Growth - The growth rate of interest-earning assets is stable, with a year-on-year increase of 6.5%. Total loans increased by 5.3%, and bond investments rose by 8.2% [16][17]. - Total deposits grew by 7.7% year-on-year, with a notable increase in the proportion of time deposits [16][18]. Non-Interest Income - Non-interest income has faced pressure, with a year-on-year decline of 3.4%. The net fee income has decreased by 16.9%, while other non-interest income has increased by 30.9% [22][23]. - The wealth management segment has shown strong growth, with agency wealth management income increasing by 47.4% [22][23]. Retail Customers and AUM - The number of retail customers has surpassed 206 million, with total assets under management (AUM) reaching 14.3 trillion yuan. The growth rates for different customer segments remain robust [26][29]. Asset Quality - The overall asset quality remains stable, with the NPL ratio at 0.94% and a provision coverage ratio of 432.15%. The corporate NPL ratio has improved, while the retail NPL ratio has seen a slight increase [30][34]. - The overdue rate has improved, with a current rate of 1.25%, down 17 basis points [30][34]. Other Insights - The core tier one capital adequacy ratio has increased, indicating a strong capital position [44]. - The report has adjusted profit forecasts for 2024-2026, with expected net profits of 146.6 billion, 146.6 billion, and 149.5 billion yuan respectively [44].