Shanghai Pudong Development Bank (600000) Q3 2024 earnings summary

Executive summary

• Net profit attributable to shareholders for Q3 2024 surged 69.86% year-over-year to RMB 8,235 million, with a 25.86% increase for the nine-month period to RMB 35,223 million.

• Operating income for Q3 was RMB 41,591 million, flat year-over-year; nine-month operating income was RMB 129,839 million, down 2.24% year-over-year.

• Excluding the one-off gain from the sale of Morgan JV in 2023, nine-month operating income grew 0.98% year-over-year.

• Asset quality improved, with non-performing loan (NPL) ratio at 1.38%, down 0.10 percentage points from year-end 2023.

Financial highlights

• Basic EPS for Q3 was RMB 0.23, up 91.67% year-over-year; nine-month EPS was RMB 1.13, up 28.41%.

• Net interest income for Q3 was RMB 28,173 million, down from RMB 30,117 million last year; nine-month net interest income was RMB 86,219 million, down from RMB 90,545 million.

• Cost-to-income ratio for the nine months was 28.00%, up 0.13 percentage points year-over-year.

• Net cash flow from operating activities for the nine months was negative RMB 161,398 million, a significant decrease from last year.

• Total assets reached RMB 9,416,535 million at Q3-end, up 4.54% from year-end 2023.

Outlook and guidance

• Management expects continued focus on supporting the real economy, optimizing loan and deposit structure, and maintaining asset quality.

• Net interest margin is expected to remain under pressure due to LPR cuts and lower loan yields, but cost control and deposit repricing should help stabilize margins.

• The bank will continue to strengthen risk management, especially in real estate and local government debt, and support policy-driven sectors.