Ping An Bank (000001) H1 2024 earnings summary

Executive summary

• Operating income for H1 2024 was RMB 77.13 billion, down 13% year-on-year, while net profit attributable to shareholders rose 1.9% to RMB 25.88 billion.

• Total assets reached RMB 5.75 trillion, up 3%, with credit growth focused on manufacturing, agriculture, technology, finance, and green sectors.

• Asset quality remained stable: NPL ratio at 1.07%, provision coverage at 264%.

• Retail transformation reduced high-risk loan exposure and improved customer quality; proprietary channels and risk controls strengthened.

• Strategic reforms stabilized retail, improved corporate business, and enhanced collaboration across the organization.

Financial highlights

• Corporate loans grew 11.4% year-to-date; retail loans declined 7.9% due to structural adjustments.

• Total deposits increased 4.8%, with retail deposits up 6.9%.

• Non-interest income grew 8%; operating costs fell 9.9%, saving RMB 2.3 billion.

• ROE and ROA remained strong; cost-to-income ratio was 27.37%.

• Basic/diluted EPS was RMB 1.23, up 2.5% year-on-year.

Outlook and guidance

• Management expects continued pressure on revenue and NIM in H2, but aims to stabilize NIM around 1.9%.

• Retail business will focus on quality growth, proprietary channels, and digitalization.

• Corporate business to emphasize asset allocation, industry focus, and risk management.

• Priorities include strengthening risk management, optimizing asset and liability structure, and enhancing digital transformation.

• Dividend payout ratio to be maintained at a rational level, with interim dividends introduced for the first time.