CM BANK(600036) 东兴证券·2025-01-16 02:43Investment Rating - The report maintains a "Strong Buy" rating for China Merchants Bank [5][11]. Core Views - The bank's revenue decline has narrowed, with a year-on-year revenue change of -0.5% and a net profit increase of +1.2% for 2024, indicating a recovery in profitability [2][11]. - The asset quality remains stable, with a non-performing loan ratio of 0.95% at year-end, and the bank is expected to benefit from improving credit costs and a supportive economic environment [2][3][11]. Summary by Sections Financial Performance - In 2024, China Merchants Bank achieved a revenue of 337.54 billion and a net profit of 148.39 billion, with respective year-on-year changes of -0.5% and +1.2% [1][12]. - The return on equity (ROE) was reported at 15.1%, down 1.7 percentage points year-on-year [1]. Revenue Composition - Net interest income decreased by 1.6% year-on-year, but the decline rate improved by 1.5 percentage points compared to previous quarters [2]. - Other non-interest income increased by 1.5% year-on-year, driven by improved market conditions and a recovery in wealth management fees [2][3]. Asset and Liability Management - Total assets grew by 10.2% year-on-year, with loans increasing by 5.8% and deposits rising by 11.5% [3][12]. - The bank's deposit growth outpaced loan growth, reflecting strong customer relationships and service capabilities [3]. Future Outlook - The bank is expected to see a gradual recovery in retail lending and a stabilization of its wealth management business, supported by favorable policies and market conditions [4][11]. - Projections indicate net profit growth of 3.4% and 5.8% for 2025 and 2026, respectively, with a corresponding book value per share (BVPS) of 48.82 and 55.33 yuan [11][12].