PAB Earnings: Net Interest Margin Decline Narrowed on Easing Deposit Costs

We maintain our fair value estimate for Ping An Bank at CNY 13 per share following its third-quarter announcement, which revealed a slowdown in net profit growth to 0.2%, down from 1.9% year on year in the first half. Year-on-year declines in net interest income and fee income of 18% and 13% respectively, were smaller than the first half and met expectations. These results show rising industry challenges, including slowing consumer spending, weakening credit demand, and deteriorating retail credit quality.