总资产同比增速4.6%，贷款同比增速8.7%：截至2024 年6 月末，兴业银行总资产同比增速4.6%，其中，贷款同比增速8.7%，金融投资同比增速-2.6%。风险加权资产同比增速5.5%。核心一级资本充足率9.48%，较年初下降28BP。Industrial Bank announced its 2024 interim results report.
Investment highlights:
2024.1H revenue grew 1.8% year on year: Industrial Bank's 2024.1H revenue grew 1.8% year on year, and net profit to mother grew 0.9% year on year. Among them, 2Q's single-quarter revenue grew -0.6% year on year, and net profit to mother grew 6.5% year on year, mainly due to a decline in provisions.
Total assets grew 4.6% year on year, loans grew 8.7% year on year: As of the end of June 2024, Industrial Bank's total assets grew 4.6% year on year. Among them, loans grew 8.7% year on year, and financial investment grew -2.6% year on year. Risk-weighted assets grew 5.5% year over year. The core Tier 1 capital adequacy ratio was 9.48%, down 28 BP from the beginning of the year.
Asset quality-related indicators did not change much from month to month: as of the end of June 2024, the non-performing rate was 1.08%, up 1 BP from the end of March, the attention rate was 1.73%, up 3BP from the end of March, the provision coverage rate was 237.82%, down 7.7 percentage points from the previous month. As a forward-looking indicator, there was a slight decline in the rate of bad new generation. Furthermore, as of the end of June, the company's non-performing asset ratio for public real estate financing was 3.65%, up 0.62 percentage points from the end of the previous year. However, the provision level for public real estate financing is 4.95%. The debt balance of local government financing platforms decreased by 9.948 billion yuan compared to the end of the previous year, the non-performing balance increased by 0.477 billion yuan, and the non-performing asset ratio was 3%, up 0.48% from the end of the previous year.
Deposit costs improved markedly: 2024.1H net interest spread, return on interest-bearing assets, and interest-paying debt cost ratio decreased by 9, 21, and 10 BP, respectively. Among them, loan yield and deposit cost ratio decreased by 31 BP and 20 BP, respectively. Mainly the decline in the cost of personal time deposits.
Profit forecast and investment advice: The company's revenue has maintained positive growth, deposit costs have improved markedly, and scale expansion has remained steady. We expect net profit attributable to mother for 2024-2026 to be 79.48 billion yuan, 81.562 billion yuan, and 83.695 billion yuan, respectively, corresponding year-on-year growth rates of 3.07%, 2.62%, and 2.62%, respectively. According to the closing price of Industrial Bank A shares of RMB 16.82 on August 22, the corresponding 2024-2026 PB valuations were 0.45 times, 0.42 times, and 0.39 times, respectively, maintaining an increase rating.
Risk factors: The banking industry as a whole is greatly affected by macroeconomic, monetary and regulatory policies. Changes in the economy and related policies will have an important impact on bank operations.
This includes changes in net interest spreads, asset quality expectations, etc.
