Investment Rating - The industry investment rating is "Buy" [2] Core Insights - The report indicates that the banking sector is experiencing a decline in interest margins, which is expected to continue impacting performance negatively. The overall economic environment remains challenging, with ongoing pressures on profitability and operational efficiency [6][15][17]. Summary by Sections 1. Overall Performance and Non-Interest Income - The banking sector's performance in Q1 2025 shows a decline in profitability compared to Q4 2024, with a year-on-year decrease in net profit attributable to shareholders. The decline is attributed to reduced interest margins and non-interest income pressures [6][15]. 2. Scale and Demand - There is a noticeable differentiation in demand across different banking segments, with larger banks showing more resilience compared to smaller banks. The overall growth in loan demand is expected to stabilize, but the performance of smaller banks may lag behind [6][15]. 3. Interest Margin Trends - Interest margins are projected to decline further in 2025 compared to 2024, with the report suggesting that the decline will be less severe than in the previous year. The report anticipates a gradual recovery in margins as market conditions stabilize [6][15]. 4. Non-Interest Income Recovery - Non-interest income is expected to rebound, although it remains under pressure due to market volatility. The report highlights the importance of maintaining a diversified income stream to mitigate risks associated with interest income fluctuations [6][15]. 5. Asset Quality Outlook - The asset quality of banks is expected to remain stable, but there are concerns regarding potential deterioration in credit quality due to economic uncertainties. The report emphasizes the need for banks to manage their credit risk effectively [6][15]. 6. Recommendations - The report suggests that banks should focus on optimizing their funding structures and improving operational efficiencies to counteract the pressures from declining interest margins. Continuous monitoring of market conditions is recommended to adapt strategies accordingly [6][15]. 7. Risk Factors - Key risk factors identified include macroeconomic fluctuations, significant competition in the banking sector, and potential regulatory changes that could impact profitability [6][15].

Core Insights - In the first quarter of 2025, 14 out of 17 A-share listed city commercial banks reported positive revenue growth, with an average growth rate of 2.96%, a decline from 5.61% in the same period last year [1][3][6] - The net profit for 14 banks also showed positive growth, averaging 5.49%, down from 7.05% year-on-year [1][6][7] - The asset scale of A-share listed city commercial banks increased by 6.53% compared to the end of the previous year, up from 4.65% year-on-year [2][9] Revenue Performance - Qingdao Bank led the revenue growth with a year-on-year increase of 9.69%, followed by Xi'an Bank (8.14%), Nanjing Bank (6.53%), and Jiangsu Bank (6.21%) [3][5] - Three banks reported negative revenue growth: Beijing Bank (-3.18%), Guiyang Bank (-16.91%), and Xiamen Bank (-18.42%) [4][5] - Jiangsu Bank achieved the highest revenue among the listed banks, totaling 22.304 billion yuan, while Xiamen Bank had the lowest at 1.214 billion yuan [4][5] Net Profit Performance - Hangzhou Bank led in net profit growth with a 17.3% increase, followed by Qilu Bank (16.47%) and Qingdao Bank (16.42%) [7][8] - Negative net profit growth was reported by Beijing Bank (-2.44%), Guiyang Bank (-6.82%), and Xiamen Bank (-14.21%) [7][8] - Jiangsu Bank reported the highest net profit at 9.78 billion yuan, while Xiamen Bank had the lowest at 0.645 billion yuan [7][8] Asset Scale and Quality - As of March 31, 2025, eight A-share listed city commercial banks had asset scales exceeding 1 trillion yuan, with Beijing Bank and Jiangsu Bank surpassing 4 trillion yuan [9][10] - The overall asset quality showed improvement, with seven banks reporting non-performing loan ratios below 1%, the lowest being Chengdu Bank at 0.66% [11][12]

Core Insights - Qingdao Bank's total assets have surpassed 700 billion yuan for the first time, reflecting its commitment to serving the local real economy [1] - The bank's corporate loans reached 279.56 billion yuan, marking a 6.56% increase from the beginning of the year [1] - Qingdao Bank has implemented a regional development strategy, focusing on localized decision-making and specialized services to support high-quality economic development [1] Talent Advantage and Support for Local Tech Enterprises - Qingdao Bank is actively promoting its "Five Major Articles" and conducting differentiated operations around "Eight Major Tracks" to support tech enterprises [2] - The bank has developed a "Qingyin Technology - Accompanying Growth" service system to address the financing challenges faced by light-asset, high-risk tech companies [2] - Qingdao Bank provided an 8 million yuan "Talent Loan" to Huasaiberman Medical Cell Biology Co., alleviating its financial pressures during its early stages [4] Support for Manufacturing and Livestock Industries - Qingdao Bank has established a unique financing solution for the livestock industry by creating a live livestock asset identification system, facilitating a loan of 288 million yuan for Qingdao Longming Cattle Industry [10][11] - The bank's support for the manufacturing sector includes a 200 million yuan credit approval for Beiqi Industrial Co., enabling the expansion of its production capacity [12] Customized Financial Services for Tourism Industry - Qingdao Bank has tailored financial services for the tourism industry, collaborating with local businesses like Pusu Hotel Management to provide flexible and efficient financial solutions [8] - The bank's customized financial plans have effectively supported the growth of the local tourism sector, particularly in managing cash flow during peak and off-peak seasons [8]

Financial Performance - Total operating income for Q1 2025 reached RMB 4,046,601 thousand, an increase of 9.69% compared to RMB 3,689,255 thousand in Q1 2024[5] - Net profit attributable to shareholders of the parent company was RMB 1,258,058 thousand, reflecting a growth of 16.42% from RMB 1,080,635 thousand in the same period last year[5] - Basic earnings per share increased to RMB 0.22, up 15.79% from RMB 0.19 in Q1 2024[5] - The bank's total profit for the three months ended March 31, 2025, was RMB 1,397,356 thousand, up from RMB 1,307,392 thousand in the previous year, reflecting a growth of 6.9%[55] - The bank's operating income for the three months ended March 31, 2025, was RMB 1,399,311 thousand, compared to RMB 1,308,469 thousand in the same period of 2024, representing a year-over-year increase of 6.9%[55] - Investment income for the first quarter of 2025 was RMB 1,028,357 thousand, significantly higher than RMB 356,277 thousand in the same period of 2024, indicating a substantial increase[53] Asset and Liability Management - Total assets as of March 31, 2025, amounted to RMB 713,153,153 thousand, a 3.36% increase from RMB 689,963,033 thousand at the end of 2024[5] - The total liabilities increased to CNY 667.23 billion, a rise of CNY 22.17 billion or 3.44% from the end of the previous year[25] - As of March 31, 2025, total liabilities were RMB 667,234,135 thousand, an increase from RMB 645,063,204 thousand as of December 31, 2024, reflecting a growth of about 3.4%[48] - The bank's equity attributable to shareholders increased to RMB 44,907,429 thousand as of March 31, 2025, compared to RMB 43,932,381 thousand at the end of 2024, reflecting a growth of about 2.2%[50] Loan and Deposit Growth - As of March 31, 2025, the total customer loans amounted to CNY 359.12 billion, an increase of CNY 18.43 billion or 5.41% compared to the end of the previous year[25] - The total customer deposits reached CNY 448.70 billion, up CNY 16.67 billion or 3.86% from the end of the previous year[25] - The net increase in customer deposits was RMB 16,674,295 thousand, significantly higher than RMB 4,047,379 thousand in the previous year, reflecting a growth of 313.5%[60] Risk Management - The non-performing loan ratio was 1.13%, a slight decrease from 1.14% at the end of 2024[12] - The loan provision coverage ratio increased to 251.49% as of March 31, 2025, compared to 241.32% at the end of 2024[12] - The core tier 1 capital adequacy ratio was 8.96%, down 0.15 percentage points from the end of the previous year[28] - The liquidity coverage ratio was 159.25%, down from 203.02% at the end of the previous year[21] Cash Flow Analysis - The net cash flow from operating activities was negative at RMB (475,956) thousand, an improvement of 88.64% compared to RMB (4,190,388) thousand in Q1 2024[10] - Cash flow from investing activities resulted in a net outflow of RMB 1,027,037 thousand, contrasting with a net inflow of RMB 5,410,740 thousand in the previous year[62] - The cash flow from financing activities generated a net inflow of RMB 2,896,174 thousand, compared to RMB 1,764,486 thousand in the same period of 2024, marking a 64.0% increase[62] Digital and Technological Advancements - The company is actively promoting digital financial construction and has successfully launched the first phase of a new generation distributed core business system[31] - The company has accelerated the development of AI capabilities, successfully launching the Xingchen Office Assistant[31] Client Growth and Engagement - As of March 31, 2025, the total number of corporate clients with accounts opened reached 282,300, an increase of 6,900 clients or 2.51% compared to the end of the previous year[29] - The number of corporate loan clients (excluding discounted bill clients) increased by 469 to 12,078, representing a growth of 4.04%[29] - Retail clients' asset scale reached CNY 353.80 billion, an increase of CNY 7.88 billion or 2.28% from the end of the previous year[29] - The number of retail clients managing assets over CNY 50,000 reached 800,400, an increase of 28,800 clients or 3.73%[29]

Financial Performance - Operating revenue for Q1 2025 reached RMB 4,041,353 thousand, an increase of 9.58% compared to RMB 3,688,178 thousand in Q1 2024[7] - Net profit attributable to shareholders of the parent company was RMB 1,258,058 thousand, reflecting a growth of 16.42% from RMB 1,080,635 thousand in the same period last year[7] - Basic and diluted earnings per share increased to RMB 0.22, up 15.79% from RMB 0.19 in Q1 2024[7] - The bank achieved a net profit of 1.258 billion yuan in Q1 2025, an increase of 177 million yuan, or 16.42% year-on-year[25] - Operating revenue reached 4.041 billion yuan, up 353 million yuan, or 9.58% year-on-year[25] - Net interest income was 2.650 billion yuan, an increase of 283 million yuan, or 11.97% year-on-year[25] - Non-interest net income grew to 1.391 billion yuan, up 70 million yuan, or 5.28% year-on-year[25] - The net profit for the three months ended March 31, 2025, was RMB 1,302,199 thousand, an increase of 16.2% compared to RMB 1,119,837 thousand for the same period in 2024[44] Assets and Liabilities - Total assets as of March 31, 2025, amounted to RMB 713,153,153 thousand, representing a 3.36% increase from RMB 689,963,033 thousand at the end of 2024[7] - Total liabilities increased by 3.44% to RMB 667,234,135 thousand from RMB 645,063,204 thousand at the end of 2024[7] - As of March 31, 2025, the total assets of the company reached RMB 713.15 billion, an increase of RMB 23.19 billion or 3.36% compared to the end of the previous year[24] - The total liabilities amounted to RMB 667.23 billion, increasing by RMB 22.17 billion or 3.44% year-on-year[24] - The bank's total equity attributable to shareholders increased to RMB 44,907,429 thousand, up from RMB 43,932,381 thousand at the end of 2024[46] Cash Flow and Liquidity - The net cash flow from operating activities improved significantly to (RMB 475,956 thousand), a decrease of 88.64% from (RMB 4,190,388 thousand) in the previous year[7] - The bank's cash and cash equivalents increased to RMB 32,508,400 thousand as of March 31, 2025, compared to RMB 18,580,681 thousand a year earlier, reflecting a growth of 75.1%[49] - The bank's operating cash flow for the three months ended March 31, 2025, was a net outflow of RMB 475,956 thousand, an improvement from a net outflow of RMB 4,190,388 thousand in the same period of 2024[49] Loan and Deposit Growth - The total customer loans reached RMB 359.12 billion, up RMB 18.43 billion or 5.41% from the previous year, accounting for 50.36% of total assets[24] - The total customer deposits were RMB 448.70 billion, an increase of RMB 16.67 billion or 3.86% year-on-year, representing 67.25% of total liabilities[24] - The company focused on increasing loans in key areas such as green finance and rural revitalization, leading to a steady growth in loan scale[24] - The company implemented strategies to optimize the structure of liabilities, resulting in a steady increase in both corporate and personal deposits[24] Risk and Capital Ratios - The capital adequacy ratio stood at 13.51% as of March 31, 2025, slightly down from 13.80% at the end of 2024[11] - The core tier 1 capital adequacy ratio was 8.96% as of March 31, 2025, down from 9.11% at the end of 2024[16] - The leverage ratio stood at 5.74% as of March 31, 2025, slightly down from 5.79% at the end of 2024[18] - The liquidity coverage ratio was 159.25% as of March 31, 2025, down from 203.02% at the end of 2024[20] - The non-performing loan ratio was 1.13%, remaining stable compared to 1.14% at the end of 2024[11] - The provision coverage ratio increased to 251.49%, up 10.17 percentage points year-on-year[26] - The normal loan classification accounted for 98.39% of total loans, showing an increase of 5.51% year-on-year[22] Operational Efficiency - The cost-to-income ratio improved to 23.93%, down from 35.16% in the previous year[11] - The average return on total assets (annualized) increased to 0.74% from 0.68% in the previous year[11] - The bank's total operating expenses for the first quarter of 2025 were RMB (1,011,203) thousand, slightly up from RMB (990,763) thousand in the same period of 2024[43] - The bank's other operating net income for the first quarter of 2025 was RMB 25,384 thousand, compared to RMB 23,377 thousand in the same period of 2024, indicating an increase of 8.6%[43] Customer Base - The number of corporate customers reached 282,300, an increase of 6,900, or 2.51% year-on-year[27] - Retail customer assets grew to 353.802 billion yuan, an increase of 7.880 billion yuan, or 2.28% year-on-year[27] Sector-Specific Loans - Technology financial loans amounted to 127.302 billion yuan, an increase of 1.464 billion yuan, or 5.67% year-on-year[28] - Green loan balance reached 43.722 billion yuan, up 6.373 billion yuan, or 17.06% year-on-year[28] Other Financial Metrics - The bank's credit impairment losses for the first quarter of 2025 were RMB (1,632,794) thousand, compared to RMB (1,390,023) thousand in the same period of 2024, representing an increase of 17.5%[43] - The bank's trading net gains for the first quarter of 2025 were RMB 23,378 thousand, a recovery from a loss of RMB (40,777) thousand in the same period of 2024[43] - The bank's commission and fee income for the first quarter of 2025 was RMB 558,492 thousand, down from RMB 662,343 thousand in the same period of 2024, reflecting a decrease of 15.7%[43] Governance and Regulation - The board of directors includes executive directors Jing Zailun, Wu Xianming, Chen Shuang, and Liu Peng[50] - The bank is not recognized as an authorized institution under the Banking Ordinance (Cap. 155 of the Laws of Hong Kong) and is not subject to the supervision of the Hong Kong Monetary Authority[50]

Dividends and Shareholder Information - The company reported a cash dividend of RMB 1.60 per 10 shares for common shareholders, totaling a distribution based on the total shares as of the dividend record date[5]. - The company issued dividends totaling RMB 9.31 billion during the reporting period[127]. Financial Performance - Net interest income for 2024 reached RMB 9,873,824 thousand, an increase of 6.38% compared to RMB 9,281,969 thousand in 2023[14]. - Non-interest income increased by 10.67% to RMB 3,540,867 thousand in 2024 from RMB 3,199,382 thousand in 2023[14]. - Total operating revenue for 2024 was RMB 13,414,691 thousand, reflecting a growth of 7.48% from RMB 12,481,351 thousand in 2023[14]. - Pre-tax profit rose by 26.99% to RMB 4,995,129 thousand in 2024, compared to RMB 3,933,397 thousand in 2023[14]. - Net profit for 2024 was RMB 4,404,721 thousand, a 19.97% increase from RMB 3,671,420 thousand in 2023[14]. - The annual operating income for the group was 13.415 billion RMB, reflecting a growth of 7.48%[28]. - Net profit for the year reached 4.405 billion RMB, marking a significant increase of 19.97%[28]. Assets and Liabilities - Total assets as of December 31, 2024, amounted to RMB 689,963,033 thousand, up 13.48% from RMB 607,985,372 thousand at the end of 2023[15]. - Total liabilities reached RMB 645,063,204 thousand, an increase of 13.56% from RMB 568,046,129 thousand in 2023[15]. - Customer loans totaled RMB 340,689,725 thousand, representing a 13.53% increase from RMB 300,089,541 thousand in 2023[15]. - Customer deposits amounted to RMB 432,024,006 thousand, reflecting an 11.91% growth from RMB 386,062,259 thousand in 2023[15]. Capital and Ratios - The core tier 1 capital adequacy ratio improved to 9.11% in 2024, up from 8.42% in 2023, an increase of 8.20%[16]. - The liquidity coverage ratio significantly increased to 203.02% in 2024, compared to 158.11% in 2023, reflecting a 28.38% rise[16]. - The capital adequacy ratio stood at 13.80% as of December 31, 2024, an increase of 1.01 percentage points compared to the previous year[165]. - The net stable funding ratio was 120.31% and the liquidity coverage ratio was 203.02%, both meeting regulatory requirements[163]. Risk Management - The bank's risk management framework has been optimized, enhancing its ability to monitor and manage risks effectively[23]. - The company has established a comprehensive risk monitoring system for group clients, enhancing risk data integration and management[160]. - The company has implemented measures to manage non-performing assets, including enhanced risk monitoring and innovative disposal methods[158]. Digital Transformation and Innovation - The bank's focus on technology innovation has led to a notable increase in loan growth in key sectors such as manufacturing and green finance, surpassing the overall loan growth rate[22]. - The bank is advancing its digital transformation strategy, enhancing data quality and developing a unified digital product management platform[43]. Loan and Deposit Growth - Over 40% growth was recorded in loans for manufacturing, technology, green projects, and agriculture, with new corporate loans exceeding 40 billion RMB[29]. - Retail deposits at year-end totaled 219.80 billion RMB, an increase of 16.64%[29]. - The total customer loan amount reached RMB 340.69 billion, with a non-performing loan (NPL) ratio of 1.14% as of December 31, 2024, compared to 1.18% in the previous year[148]. Financial Investments - Financial investments reached a book value of RMB 255.66 billion, an increase of RMB 29.64 billion or 13.12% compared to the previous year[107]. - The company's financial investments measured at amortized cost amounted to RMB 975.94 billion, reflecting an increase of RMB 448.37 billion or 84.99% year-over-year, enhancing overall revenue stability[114]. Corporate Governance and Compliance - The financial statements for 2024 have been audited by KPMG, confirming their accuracy and completeness[5]. - The board of directors and senior management have confirmed the authenticity and completeness of the annual report[5]. - The company maintained a strong performance in investor relations and information disclosure, receiving the highest rating of A from the Shenzhen Stock Exchange for the fourth consecutive year[46].

Investment Rating - The industry investment rating is "Positive" and maintained [12] Core Insights - The Longjiang Bank Index increased by 0.6% this week, outperforming the CSI 300 Index by 0.2% and underperforming the ChiNext Index by 1.4%. The banking sector's defensive attributes have gained traction due to a decline in market risk appetite [2][6] - The performance of listed banks remains stable, with city commercial banks exceeding expectations in their Q1 reports, supporting upward valuation adjustments. Notably, Chongqing Bank and Nanjing Bank reported significant year-on-year growth in net interest income of 28% and 18%, respectively, driven by a low base from last year and improved interest margins [2][7][29] Summary by Sections Market Performance - The Longjiang Bank Index's performance reflects a shift towards defensive investments in the banking sector amid rising risk aversion. The index's performance is supported by the positive earnings reports from major banks [2][6] Earnings Reports - As of April 25, 2025, 15 A-share listed banks have disclosed their Q1 earnings. Most banks reported positive revenue growth, with only two banks experiencing declines. The net profit for all but one bank also showed positive growth. The asset quality remains stable, with non-performing loan ratios generally declining or stable [7][29] - The rebound in net interest income growth is a key highlight, with nine banks reporting year-on-year increases. The overall improvement in net interest margins is attributed to a significant reduction in funding costs [29][30] Dividend Yields - As of April 25, 2025, the average dividend yield for the five major state-owned banks in A-shares is 4.5%, with a spread of 280 basis points over the 10-year government bond yield. The H-shares have an average yield of 6.0%, with a spread of 435 basis points, indicating a more attractive yield in the H-share market [6][23] Monetary Policy Insights - The Central Political Bureau meeting on April 25, 2025, reiterated the need for timely interest rate cuts and reserve requirement ratio reductions. The meeting emphasized the creation of new structural monetary policy tools to support technological innovation and consumption expansion [35][37]

Core Viewpoint - Qingdao Bank actively responds to national strategies for inclusive finance reform and small and micro enterprise financing, creating a multi-dimensional service model that promotes symbiosis between financial institutions and small enterprises [1] Group 1: Service Response Mechanism - Qingdao Bank has established a three-tier vertical response system involving the head office, municipal branches, and county-level branches, ensuring seamless connection with local government teams [2] - The bank has conducted extensive outreach to businesses and communities, forming a rapid service loop from policy interpretation to quick loan disbursement, resulting in over 20 billion yuan in loans issued [2] Group 2: Digital Empowerment - The bank has expanded data integration and collaboration, creating a dedicated scoring card for technology enterprises based on various metrics, allowing for precise financial services [3] - New loan products tailored for specialized and innovative enterprises have been launched, demonstrating the successful integration of digital technology and finance [3] Group 3: Service Process Innovation - Qingdao Bank is promoting service transformation through the "One Optimization and Three Reductions" initiative, launching the online product "Inclusive e-loan" to streamline the financing process [4] - The online approval process has improved efficiency by 50%, significantly reducing the time required for loan approvals from one week to 2-3 days [4] Group 4: Industry Development Support - The bank has integrated deeply into local industrial layouts, providing supply chain financial services to over 2,800 small enterprises, with a total financing of 4.525 billion yuan since 2025 [5] - Qingdao Bank aims to enhance its financing coordination mechanisms and optimize its product system to provide more precise and efficient financial support for small enterprises [5]

Group 1 - The banking sector has seen 9 stocks reach historical highs this month, including major state-owned banks like ICBC, ABC, and CCB, with significant year-to-date gains [2][4] - The banking sector index rose by 1.16% on April 24, outperforming the market, with notable increases in stock prices for major banks [2][3] - The overall performance of the banking sector improved significantly in Q4 of the previous year, with 33 out of 36 banks reporting year-on-year profit growth [4][5] Group 2 - The total cash dividends announced by banks for 2024 have reached a record high of 6,161.26 billion yuan, surpassing the previous year's total [6][7] - Major banks like ICBC, CCB, and ABC have declared dividends exceeding 500 billion yuan, contributing to the sector's reputation for high dividends [6][7] - Ningbo Bank reported the highest year-on-year increase in dividends at 50%, indicating a strong commitment to shareholder returns [7]

随着国内经济转型，银行机构普遍处于息差收窄、营收放缓的境地。然而，券商中国记者梳理上市银行 2024年年报发现，不少上市银行的国际结算量猛增，带来的收益呈现可观的正增长。 随着我国外贸"朋友圈"越来越大，服务企业出海需求以及跨境电商等中小微企业，成为商业银行拓展营收的重 要途径。 近期有国有大行的银行高管在业绩说明会上表示要提高境外机构的协同，也有股份行在其年报中直接表示 要"力争用三年时间走进同类型银行第一梯队"，此外还有一些中小银行高管表态要拓展客户国际化，拓展跨境 金融方面的收入。 不可忽视的是，不同于去年，2025年美国推出所谓的"对等关税"，中小企业出海尤其对口美国相关业务出现 了不确定性，国际金融市场的波动又将对企业出海和银行国际化转型带来哪些复杂的影响？ 国际业务对营收贡献增大 我国进出口规模于2024年再创历史新高，并实现了同比增长5%，这给国内商业银行的营收带来了提升效应。 以中国银行为例，该行跨境业务是其传统优势业务，并领先同业。2024年在境内资产总额增速放缓、盈利指 标增速和贡献度下降的情况下，中国银行在"中国香港澳门台湾地区"，以及"其他国家和地区"实现了经营规模 和业绩较快增长，且 ...