BANK COMM(601328) 中泰证券·2024-05-15 11:00Investment Rating - The report assigns an "Accumulate" rating for the company [2][5]. Core Views - The first quarter of 2024 shows a rebound in net interest margin, with net profit maintaining positive growth. The revenue decline has narrowed to -0.4% due to improved cost control and a positive growth rate in pre-provision operating profit (PPOP) [4][8]. - The bank's asset quality remains stable, with a year-on-year increase in net profit growth rate to 1.4% [4][8]. - The company is positioned as a leading state-owned bank in the Yangtze River Delta, with steady revenue and profit growth, and a proactive loan allocation supporting the real economy [5][24]. Summary by Sections Financial Performance - In 2023, the company reported total revenue of 240,219 million yuan, with a slight decline of 0.9% year-on-year. The net profit for the same year was 92,728 million yuan, reflecting a growth rate of 0.6% [2][5]. - For 2024E, the projected net profit is 94,586 million yuan, with an expected growth rate of 2.0% [2][5]. Net Interest Income - In Q1 2024, net interest income increased by 3.9% quarter-on-quarter, driven by contributions from the liability side. The annualized net interest margin for Q1 2024 was 1.26%, up by 3 basis points [4][12]. - The asset yield decreased by 7 basis points to 3.46%, while the deposit interest rate fell by 9 basis points to 2.32%, effectively offsetting the pressure from the asset side [12][18]. Asset Quality - The non-performing loan (NPL) ratio for Q1 2024 was 1.32%, slightly down from the previous quarter. The annualized NPL generation rate increased by 10 basis points to 0.63% [21][22]. - The overdue rate rose to 1.39% in Q1 2024, indicating a slight increase in overdue loans [21][22]. Investment Recommendations - The report forecasts a price-to-book (PB) ratio of 0.53X for 2024E, 0.49X for 2025E, and 0.46X for 2026E. The price-to-earnings (PE) ratios are projected at 6.75X for 2024E, 6.58X for 2025E, and 6.42X for 2026E [5][24]. - The bank's proactive support for the real economy and improving asset quality metrics suggest a favorable investment outlook, justifying the "Accumulate" rating [5][24].