PAB(000001) 华福证券·2025-01-10 13:16Investment Rating - The report gives a "Buy" rating for Ping An Bank, indicating that the current pessimistic expectations have been fully digested and the darkest period for the fundamentals has passed [12]. Core Viewpoints - The new president, Ji Guangheng, has extensive experience and strong coordination capabilities with Ping An Group, which is expected to enhance the bank's operational efficiency [2][3]. - The retail business structure is undergoing adjustments, but the core strategy remains focused on retail banking, with a temporary shift towards corporate banking to fill the gap during the transition [4][29]. - The report anticipates that by the end of 2024, high-risk retail assets will be largely cleared, leading to a reduction in pressure from non-performing loans and a gradual recovery in performance [10][57]. Summary by Sections 1. Management and Organizational Structure - The core management team has been established, and organizational restructuring is in place to enhance the bank's adaptability to the operating environment [1][3]. - The number of departments has been reduced from 43 to 32, improving service capabilities at the headquarters [3][18]. - Branch managers now have full responsibility for business operations, allowing for greater autonomy and resource allocation to key branches [3][19]. 2. Retail Business Structure Adjustment - The bank is optimizing its retail credit structure and temporarily supplementing corporate business to mitigate risks associated with high-risk retail loans [4][23]. - The strategy remains retail-focused, leveraging a large existing customer base while addressing the need for stability during the transition [4][29]. 3. Performance Challenges - As of September 2024, the loan balance has decreased by approximately 24.2 billion yuan, primarily due to the reduction of high-risk retail loans [5][34]. - The net interest margin has significantly declined, with a year-on-year drop of 37 basis points in 2023 and 59 basis points in the first half of 2024, exceeding the average decline among listed banks [9][42]. - The bank's revenue growth rate for the first three quarters of 2024 was -12.6%, placing it at the bottom among listed banks [46]. 4. Risk Mitigation and Future Outlook - The report suggests that the pressure from retail non-performing loans will ease as high-risk assets are cleared, with expectations for a gradual recovery in earnings from 2024 to 2026 [10][59]. - The bank's ability to adapt to cyclical changes is highlighted, with potential positive catalysts from improvements in real estate and consumer sectors [12][60].