深度报告：不良出清，区域赋能，股息丰厚

Investment Rating - The report assigns a "Recommended" rating to the company, indicating a positive outlook for investment based on its fundamentals and growth potential [2]. Core Insights - The company is well-positioned to benefit from the economic growth in Chongqing, with a strong local presence and significant market share [1]. - Historical bad debts have been cleared, allowing for improved profitability and reduced credit costs, with a notable decrease in credit costs to 0.42% in H1 2023 [1]. - The net interest margin is expected to outperform expectations due to favorable asset and liability structures [1]. - The company has a high dividend yield of 6.51% based on the closing price on March 22, 2024, which is competitive among listed banks [1]. - The company is expected to see steady growth in earnings per share (EPS) over the next three years, with projections of 0.95, 0.99, and 1.04 yuan for 2023, 2024, and 2025 respectively [2]. Summary by Sections 1. Asset Quality and Credit Cost - The company has significantly reduced its non-performing loans (NPLs) and improved asset quality, with the NPL ratio dropping to 1.2% as of Q3 2023 [35][37]. - The credit cost has decreased, providing room for profit release, with a low net generation rate of non-performing loans [44]. 2. Interest Margin and Profitability - The net interest margin stands at 1.77%, placing the company in the middle range among its peers, with potential for improvement in asset yield through increased loan issuance [46][48]. - The company benefits from a low cost of deposits, with an average deposit cost rate of 1.91%, the lowest among listed banks [53][56]. 3. Regional Development and Strategic Positioning - The company is deeply rooted in the Chongqing region, benefiting from local economic policies and infrastructure investments, which are expected to drive growth [1][27]. - The company has a strong network with 1,754 branches, primarily in county areas, enhancing its market penetration and customer base [17][22]. 4. Financial Projections - The company is projected to achieve stable revenue growth, with operating income expected to rise from 29,025 million yuan in 2023 to 31,979 million yuan by 2025 [2]. - The return on equity (ROE) is anticipated to improve as the company continues to optimize its asset quality and reduce credit costs [33].