Core Points - Changshu Rural Commercial Bank announced the approval of changes to its registered capital and corresponding amendments to its Articles of Association during its second extraordinary shareholders' meeting in 2025 [1] - The bank's registered capital increased from approximately 3.015 billion yuan to about 3.316 billion yuan due to capital reserve conversion and convertible bond conversion [1] - The bank has completed the business registration change procedures and obtained a new business license from the Suzhou Data Bureau [1] Summary by Sections Registered Capital Change - The registered capital of Changshu Rural Commercial Bank has been increased to approximately 3.316 billion yuan from about 3.015 billion yuan [1] - This change was approved during the second extraordinary shareholders' meeting in 2025 [1] Articles of Association Amendment - The third extraordinary shareholders' meeting in 2025 approved the amendment of the Articles of Association [1] - The bank has completed the necessary business registration and filing procedures for the amended Articles of Association [1] Regulatory Approval - The bank submitted its application for the changes to the National Financial Supervision Administration's Suzhou Regulatory Bureau and received approval [1]

本行 2025 年第二次临时股东大会审议通过了关于《变更注册资本并相应修 改<公司章程>有关条款》的议案，因资本公积转增及可转债转股，本行注册资 本相应增加；2025 年第三次临时股东大会审议通过了关于《修订<公司章程>》 的议案。本行就变更注册资本及修订《公司章程》事项向国家金融监督管理总局 苏州监管分局提出申请并获得核准。 证券代码：601128 证券简称：常熟银行 公告编号：2025-050 江苏常熟农村商业银行股份有限公司 关于完成注册资本工商变更登记及《公司章程》备案的公告 江苏常熟农村商业银行股份有限公司（以下简称"本行"）董事会及全体董 事保证本公告内容不存在任何虚假记载、误导性陈述或者重大遗漏，并对其内容 的真实性、准确性和完整性承担个别及连带责任。 近日，本行完成注册资本的工商变更登记手续并取得苏州市数据局换发的 《营业执照》，本行注册资本由人民币 301,497.8914 万元变更为人民币 331,648.5099 万元，其他登记事项不变。同时，本行完成修订后《公司章程》 的工商备案手续。 特此公告。 江苏常熟农村商业银行股份有限公司董事会 2025 年 11 月 11 日 ...

Core Insights - The rural commercial bank sector experienced a slight increase of 0.01% on November 11, with Zhangjiagang Bank leading the gains [1] - The Shanghai Composite Index closed at 4002.76, down 0.39%, while the Shenzhen Component Index closed at 13289.0, down 1.03% [1] Stock Performance - Zhangjiagang Bank (002839) closed at 4.66, up 1.08% with a trading volume of 305,100 shares and a transaction value of 1.42 billion [1] - Su Nong Bank (603323) closed at 5.36, up 0.94% with a trading volume of 200,500 shares and a transaction value of 107 million [1] - Jiangyin Bank (002807) closed at 5.05, up 0.80% with a trading volume of 394,000 shares and a transaction value of 1.98 billion [1] - Wuxi Bank (600908) closed at 6.25, up 0.64% with a trading volume of 137,500 shares and a transaction value of 85.68 million [1] - Qingnong Commercial Bank (002958) and Changshu Bank (601128) remained unchanged at 3.27 and 7.25 respectively [1] Fund Flow Analysis - The rural commercial bank sector saw a net outflow of 140 million from institutional investors, while retail investors contributed a net inflow of 79.48 million [1] - Zhangjiagang Bank had a net inflow of 6.31 million from institutional investors, but a net outflow of 4.63 million from retail investors [2] - Wuxi Bank experienced a net inflow of 2.46 million from institutional investors, with retail investors contributing a net inflow of 3.07 million [2] - Qingnong Commercial Bank faced a significant net outflow of 23.40 million from institutional investors, while retail investors contributed a net inflow of 20.09 million [2] - Yunnan Agricultural Bank (601077) had the highest net outflow of 87.93 million from institutional investors, with retail investors contributing a net inflow of 47.76 million [2]

Core Viewpoint - The recent surge in share buybacks by various banks, including Qilu Bank and Qingdao Bank, reflects strong confidence in the long-term value of the banking sector, with over 10 listed banks participating in this trend [1][9][10]. Group 1: Share Buybacks - Qilu Bank announced that its directors, supervisors, and senior executives have collectively increased their holdings by 3.15 million yuan, accounting for 90% of the planned buyback amount [1]. - Qingdao Bank's major shareholder, Qingdao Guoxin Financial Holdings, increased its holdings by 957 million yuan, raising its stake to 15.42%, making it the largest shareholder [4]. - Xiamen Bank's executives completed a buyback plan exceeding the minimum target, with total contributions reaching 1.6857 million yuan [5]. Group 2: Market Sentiment - The buyback activities are interpreted as a recognition of the banking sector's valuation, with a current price-to-book ratio of 0.72 and a dividend yield of 3.99%, attracting long-term capital [10][12]. - The banking sector has seen a collective "self-purchase" phenomenon, with various regional banks also engaging in buybacks, indicating a broader trend across the industry [6][8]. Group 3: Performance and Valuation - Despite a slight decline in revenue and net profit for 42 A-share listed banks in the first quarter, 24 banks reported growth in both metrics, particularly city and rural commercial banks [10]. - The net interest margin for listed banks is projected to stabilize, with a simulated net interest margin of 1.32% for Q3 2025, marking a potential turning point after four years of decline [12]. - Long-term capital, particularly from insurance funds, has been increasingly allocated to the banking sector, with a reported increase of 8.36 billion shares held by insurance funds in Q3 2025 [12][13].

Core Insights - The agricultural commercial bank sector experienced a rise of 0.92% on November 10, with Shanghai Agricultural Commercial Bank leading the gains [1] - The Shanghai Composite Index closed at 4018.6, up 0.53%, while the Shenzhen Component Index closed at 13427.61, up 0.18% [1] Sector Performance - Shanghai Agricultural Commercial Bank (601825) closed at 60.6, with a gain of 2.48% and a trading volume of 291,000 shares, amounting to a transaction value of 263 million yuan [1] - Changshu Bank (601128) closed at 7.25, up 0.97%, with a trading volume of 290,900 shares and a transaction value of 210 million yuan [1] - Ruifeng Bank (601528) closed at 5.67, up 0.53%, with a trading volume of 144,300 shares and a transaction value of 81.76 million yuan [1] - Zhangjiagang Bank (002839) closed at 4.61, up 0.44%, with a trading volume of 129,300 shares and a transaction value of 135 million yuan [1] - Yuanxi Bank (600908) closed at 6.21, up 0.32%, with a trading volume of 117,800 shares and a transaction value of 72.99 million yuan [1] - Shinan Bank (603323) closed at 5.31, up 0.19%, with a trading volume of 165,600 shares and a transaction value of 87.91 million yuan [1] - Zijin Bank (601860) closed at 2.88, unchanged, with a trading volume of 366,300 shares and a transaction value of 105 million yuan [1] - Qingnong Commercial Bank (002958) closed at 3.27, unchanged, with a trading volume of 557,400 shares and a transaction value of 182 million yuan [1] - Yunnan Agricultural Commercial Bank (601077) closed at 7.00, down 0.14%, with a trading volume of 633,700 shares and a transaction value of 444 million yuan [1] - Jiangyin Bank (002807) closed at 5.01, down 0.20%, with a trading volume of 391,700 shares and a transaction value of 196 million yuan [1] Fund Flow Analysis - The agricultural commercial bank sector saw a net outflow of 210 million yuan from main funds, while retail funds experienced a net inflow of 118 million yuan [1] - The main fund flow for Shanghai Agricultural Commercial Bank was a net inflow of 9.12 million yuan, while retail funds saw a net outflow of 197,440 yuan [2] - Ruifeng Bank had a main fund net inflow of 4.43 million yuan, but retail funds experienced a net outflow of 763.71 million yuan [2] - Zhangjiagang Bank had a significant main fund net outflow of 16.33 million yuan, while retail funds saw a net inflow of 1.77 million yuan [2] - Changshu Bank experienced a main fund net outflow of 21.87 million yuan, with retail funds seeing a net inflow of 26.42 million yuan [2] - Qingnong Commercial Bank had a main fund net outflow of 32.17 million yuan, while retail funds had a net inflow of 20.39 million yuan [2] - Yunnan Agricultural Commercial Bank faced a substantial main fund net outflow of 143 million yuan, but retail funds had a net inflow of 59.38 million yuan [2]

Core Insights - The report highlights the significant growth and development of inclusive finance in China, particularly focusing on small and micro enterprises and rural areas, with a notable annual growth rate of over 20% in inclusive micro loans during the 14th Five-Year Plan period [1][2] - As of June 2025, the balance of inclusive micro loans reached 36 trillion yuan, which is 2.3 times that of the end of the 13th Five-Year Plan, with a decrease in interest rates by 2 percentage points [1][2] - The average interest rate for newly issued inclusive micro loans was 3.48% as of June 2025, reflecting a decrease of 66 basis points year-on-year [1][2] Group 1: Digital Empowerment - Digital technology has been a key driver for the development of inclusive finance, with banks utilizing big data and AI to enhance loan approval efficiency and reduce financing costs [2][7] - The market structure among banks is changing, with large commercial banks holding a 45.11% share of inclusive micro loans, while rural financial institutions have seen a decline in their market share [2][3] - The average growth rate of inclusive micro loans has been slowing down, with a decrease from 30.9% in 2020 to 12.3% by mid-2025 [2][3] Group 2: Performance of Listed Banks - Among listed banks, Agricultural Bank of China, Industrial and Commercial Bank of China, and Beijing Bank reported the highest growth rates in inclusive micro loans at 18.50%, 17.30%, and 17.27% respectively [3][4] - In contrast, some banks, including Shanghai Bank and Zhengzhou Bank, experienced negative growth rates of -3.97% and -2.06% [3][4] - The performance of different banks varies significantly, with state-owned banks generally showing stronger growth in inclusive micro loans compared to smaller banks [3][4] Group 3: Interest Rates and Risk Management - The interest rates for newly issued inclusive micro loans have decreased across various banks, with the highest rate at 4.20% and the lowest at 2.94% [7][8] - The gap in interest rates between large and small banks is narrowing, with some large banks' rates aligning closely with those of smaller banks [8][9] - The report emphasizes the importance of risk management in the inclusive finance sector, with several banks focusing on improving asset quality and managing non-performing loans [9][10]

Summary of China Regional Banks 3Q25 Review Industry Overview - The report focuses on the performance of China Regional Banks (CRBs) in the third quarter of 2025 (3Q25) - Overall profits for CRBs grew by 6% year-over-year (y/y), a decrease from 9% y/y in 2Q25, primarily due to a decline in non-fee income [1][3] Core Earnings and Profitability - CRBs demonstrated a core earnings recovery of 12% y/y, outperforming large banks which only saw a 1% y/y increase in core earnings [1][3] - Net Interest Income (NII) for CRBs grew by an average of 7% y/y, improving from 5% y/y in 2Q25, while large banks averaged only 0.4% growth [3][7] - Fee income increased by 16% y/y, reversing a contraction trend, supported by agency fee growth as market sentiment improved [3][7] - Non-fee income saw a significant decline of 32% y/y, primarily due to fair value losses in bond investments [3][7] Asset Quality - Asset quality remained stable, with the average Non-Performing Loan (NPL) ratio declining by 1 basis point (bps) q/q to 0.96% in 3Q25 [1][21] - The Special Mention Loan (SML) ratio increased by 3 bps q/q, indicating some pressure on asset quality compared to large banks [21] - The NPL coverage ratio decreased slightly by 1 bps q/q, suggesting a cautious approach to provision releases [21] Capital and Growth Constraints - The Common Equity Tier 1 (CET1) ratio for CRBs decreased by 11 bps q/q, raising concerns about growth constraints due to lower capital levels [3][21] - CRBs reported a 2% q/q loan growth, consistent with industry trends, but with significant variations among banks [20] - Deposit growth was flat on average, with BoNB experiencing the highest contraction at -1.4% q/q [20] Investment Recommendations - Top picks among regional banks include BoNB and BoNJ, both showing double-digit growth in core earnings and stable asset quality [1][3] - BoBJ's performance was the weakest, with a profit contraction of 2% y/y and a low CET1 ratio, although its high dividend yield of 5.8% provides some downside protection [1][3] - Caution is advised regarding CSRCB until clearer signs of improvement in SME asset quality are observed [1][3] Valuation Insights - The report includes a valuation comparison of various regional banks, highlighting differences in price-to-earnings (P/E) ratios, price-to-book (P/B) ratios, and return on equity (ROE) [5] - The average P/E for CRBs is projected at 6.1 for FY25E and 5.7 for FY26E, with an average dividend yield of 5.0% for FY25E [5] Conclusion - The overall performance of China Regional Banks in 3Q25 indicates a steady recovery in core earnings, although challenges remain in non-fee income and capital levels. The investment outlook is cautiously optimistic for select banks, particularly BoNB and BoNJ, while caution is warranted for others like CSRCB and BoBJ.

Investment Ratings - Banking: Overweight (Maintain) [1] - Securities: Market Weight (Maintain) [1] - Insurance: Overweight (Maintain) [1] Core Insights - The central bank's resumption of bond purchases aims to alleviate liquidity pressure on banks and enhance their lending capacity [1][4] - The securities industry has shown strong performance in the first three quarters of 2025, with a net profit of CNY 1,837.82 billion, a year-on-year increase of 61.25% [3][50] - The insurance sector is experiencing a strategic adjustment period due to changes in interest rates, with significant profit growth reported by major insurers [4] Summary by Sections Market Review - As of November 6, 2025, the banking, securities, and insurance indices have changed by +0.25%, +0.62%, and -0.67% respectively, while the CSI 300 index increased by +1.89% [12][19] - Among the sub-sectors, Chongqing Bank (+8.44%), Northeast Securities (+10.09%), and China Ping An (+1.90%) performed the best [12][19] Valuation Situation - As of November 6, 2025, the banking sector's price-to-book (PB) ratio is 0.78, with state-owned banks at 0.84 and joint-stock banks at 0.62 [21][22] - The securities sector's PB ratio is 1.54, indicating potential for valuation recovery [25] Recent Market Indicators - The one-year Medium-term Lending Facility (MLF) rate is 2.0%, with the one-year and five-year Loan Prime Rates (LPR) at 3.0% and 3.50% respectively [32][33] - The average daily trading volume of A-shares is CNY 19,673.61 billion, reflecting a decrease of 14.41% [38][40] Industry News - The insurance industry is adapting to new regulatory frameworks and interest rate changes, with a focus on optimizing product structures and enhancing profitability [43][44] - The central bank's actions are expected to provide a more stable liquidity environment for banks, especially as year-end liquidity fluctuations increase [48] Company Announcements - Major banks and insurers have reported varying earnings growth, with significant increases in net profits for companies like China Life and Xinhua Insurance [46][47]

Market Overview - On November 7, the rural commercial bank sector declined by 0.26% compared to the previous trading day, with Yunnan Rural Commercial Bank leading the decline [1] - The Shanghai Composite Index closed at 3997.56, down 0.25%, while the Shenzhen Component Index closed at 13404.06, down 0.36% [1] Individual Stock Performance - Key stock performances in the rural commercial bank sector included: - Zijin Bank: Closed at 2.88, up 0.35% with a trading volume of 311,000 shares and a turnover of 89.53 million yuan - Hu'nong Commercial Bank: Closed at 8.87, up 0.34% with a trading volume of 203,200 shares and a turnover of 181 million yuan - Jiangyin Bank: Closed at 5.02, up 0.20% with a trading volume of 414,100 shares and a turnover of 208 million yuan - Yunnan Rural Commercial Bank: Closed at 7.01, down 1.13% with a trading volume of 566,000 shares and a turnover of 397 million yuan [1] Fund Flow Analysis - The rural commercial bank sector experienced a net outflow of 59.90 million yuan from institutional investors and 50.91 million yuan from retail investors, while there was a net inflow of 111 million yuan from individual investors [1] - Detailed fund flow for individual stocks showed: - Yunnan Rural Commercial Bank: Net outflow of 10.11 million yuan from retail investors, with a net inflow of 777.16 thousand yuan from institutional investors [2] - Jiangyin Bank: Net outflow of 560.48 thousand yuan from institutional investors, with a net inflow of 1.24 million yuan from retail investors [2] - Common trends included significant net outflows from institutional and speculative investors across various banks, while retail investors showed some net inflows in several cases [2]

Core Insights - The overall performance of A-share listed banks in the first three quarters of 2025 reflects a stable total, improved structure, and significant differentiation amid a gradually recovering macroeconomic environment [2] - Revenue growth remains robust, with over 60% of listed banks achieving year-on-year revenue increases, driven by optimized asset structures and a focus on non-interest income [3] - The net interest margin (NIM), a key driver of profitability, is under pressure, posing challenges to the banking industry's profit model [2][9] Revenue Growth Resilience - More than 60% of A-share listed banks reported positive year-on-year revenue growth in the first three quarters of 2025, indicating effective support for the real economy [3] - The growth dynamics vary significantly among banks of different sizes, highlighting structural differentiation in revenue generation [3] Financial Performance of Major Banks - Major state-owned banks maintain a leading position in revenue, with Industrial and Commercial Bank of China (ICBC) reporting revenue of 640 billion yuan, a 2.17% increase, and net profit of 271.88 billion yuan, a 0.52% increase [5] - Agricultural Bank of China and China Bank also showed revenue growth above 1.5%, contributing to the stability of industry income [7] - Some joint-stock banks and regional banks, such as Minsheng Bank and Jiangsu Bank, demonstrated stronger growth, with revenue increases of 6.74% and 7.83%, respectively, indicating successful differentiation strategies [7] Profitability and Net Interest Margin - Despite revenue growth, some banks experienced lower net profit growth compared to revenue, indicating challenges in converting revenue growth into profit due to narrowing net interest margins [8] - State-owned banks showed stable net profit growth, reflecting strong risk resilience, with net profit growth rates remaining relatively close to revenue growth [8] - Smaller banks like Hangzhou Bank and Jiangsu Bank exhibited significant net profit growth, attributed to effective management and targeted customer strategies [8] Challenges in Net Interest Margin - The net interest margin for listed banks has generally declined, primarily due to factors such as lower loan market quotation rates and adjustments in existing mortgage rates [9] - State-owned banks experienced a decline of approximately 15 basis points in net interest margins, while Postal Savings Bank faced a larger drop of 21 basis points [12] - Some banks, like Minsheng Bank, managed to slightly increase their net interest margin, showcasing resilience in their business structure [12] Industry Outlook - The financial reports of listed banks in the first three quarters of 2025 depict an industry navigating pressures while growing through differentiation [13] - The stable revenue growth validates the banking sector's resilience in supporting the real economy, while the overall narrowing of net interest margins is a challenge that banks must address [13] - The ongoing macroeconomic policy effects are expected to gradually improve the banking environment, but differentiation among institutions is likely to persist [13]