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.

Group 1: Ningbo Bank - Ningbo Bank reported impressive results for the first three quarters of 2025, with operating income of 54.976 billion yuan, a year-on-year increase of 8.32% [1] - The net profit reached 22.445 billion yuan, reflecting a growth of 8.39% year-on-year [1] - The bank's asset scale exceeded 3.57 trillion yuan, with a low non-performing loan ratio of 0.76% and a high provision coverage ratio of 375.92% [1] - Capital adequacy ratio has steadily improved, showcasing balanced development in scale, efficiency, and quality [1] Group 2: Industrial and Commercial Bank of China (ICBC) - ICBC is recognized as the largest bank globally by asset size, known for its extensive business network and comprehensive service capabilities [2] - The bank is actively promoting digital transformation, creating smart outlets and enhancing online platforms for customer convenience [2] - ICBC is increasing support for renewable energy and low-carbon projects, contributing to national carbon neutrality goals [2] - Its cross-border financial services provide comprehensive support for international trade and investment, demonstrating strong international competitiveness [2] Group 3: China Construction Bank (CCB) - CCB has traditional advantages in infrastructure financing and housing finance, continuously optimizing its business structure and improving service efficiency [2] - The bank focuses on inclusive finance, simplifying loan processes through technology to support the growth of small and micro enterprises [2] - CCB is expanding green credit and sustainable development projects, reflecting its commitment as a responsible financial institution [2] Group 4: China Merchants Bank (CMB) - CMB excels in retail banking, emphasizing customer experience and personalized services [3] - The bank utilizes advanced financial technology to create efficient mobile banking and wealth management platforms [3] - CMB has launched innovative products in credit cards and consumer finance, enhancing user engagement [3] Group 5: Bank of Communications (BoCom) - BoCom adheres to a comprehensive and international development strategy, strengthening group collaboration to provide one-stop financial solutions [3] - The bank leverages its global network to assist enterprises in international expansion [3] - BoCom emphasizes social responsibility by promoting inclusive finance and green credit initiatives [3] Group 6: Overall Industry Outlook - The five banks, including Ningbo Bank, ICBC, CCB, CMB, and BoCom, each have unique characteristics that contribute to the prosperity of the Chinese banking industry [3] - These banks are expected to continue optimizing services and supporting the real economy, injecting more vitality into the market [3]

Core Viewpoint - Ningbo Bank, once a leader among city commercial banks, faces significant challenges due to the prolonged tenure of Chairman Lu Huayu, which has led to governance issues and raised concerns about the bank's future development [1][3]. Governance Issues - Lu Huayu has served as Chairman for over 20 years, exceeding regulatory limits on tenure for key positions, which is set at a maximum of 6 years [3][4]. - The board structure has become imbalanced, with a majority of external directors having potential conflicts of interest, and independent directors serving beyond the allowed tenure, leading to a lack of necessary oversight [4]. Financial Performance - Despite maintaining double-digit growth in revenue and net profit in the first three quarters of 2025, this growth is attributed to scale expansion and low base effects rather than improvements in business quality [4]. - Non-interest income growth is weak, with a mere 1.34% increase year-on-year in the first half of 2025, indicating a reliance on asset scale expansion to sustain revenue growth [4]. Risk Management - The rapid expansion of asset scale has led to significant risk exposure, particularly with 68% of new loans concentrated in the Yangtze River Delta region, and a high non-performing loan rate among small and micro enterprises [5]. - The bank has employed aggressive write-off strategies to mask the true level of risk, with 86.09 billion yuan in bad loans written off in the first three quarters of 2025, representing 38.36% of net profit [5]. Compliance and Regulatory Issues - Ningbo Bank has faced frequent regulatory penalties for various compliance failures, indicating a breakdown in internal controls and governance structures [6]. - The bank's compliance spending as a percentage of revenue is higher than its peers, yet compliance risks continue to be prevalent, reflecting inefficiencies in its compliance management system [7]. Future Outlook - As Ningbo Bank approaches its 30th anniversary, it must address governance stagnation and risk accumulation to avoid potential stagnation and risk crises [7]. - Without restructuring its governance and establishing effective risk management mechanisms, the bank's seemingly strong financial data may not be sustainable in the face of underlying risks [7].

Core Viewpoint - Ningbo Bank plans to fully redeem its preferred shares "Ningxing You 02" on November 7, 2025, at a price of 104.5 RMB per share, which includes the principal and unpaid dividends [1][2]. Redemption Schedule - The last trading day for Ningxing You 02 is November 6, 2025 [4][5]. - The redemption registration date is also November 6, 2025 [4][5]. - The shares will stop trading on November 7, 2025 [4][5]. - The redemption payment will be credited to shareholders' accounts on November 7, 2025 [2][4]. - The shares will be delisted from the Shenzhen Stock Exchange on November 10, 2025 [6]. Financial Impact - The total redemption amount for 100 million shares will be 10.45 billion RMB [2]. - The company has sufficient cash flow, and the redemption will not significantly impact its financial status or operating results [3]. - After the redemption, the total number of preferred shares will decrease from 148.5 million to 48.5 million [3].

Core Viewpoint - Ningbo Bank will fully redeem its preferred shares "Ningxing You 02" on November 7, 2025, at a total redemption price of 104.5 RMB per share, which includes the principal and unpaid dividends [2][3]. Redemption Details - The company issued 100 million preferred shares "Ningxing You 02" on November 7, 2018, with a redemption option after five years [1]. - The total redemption amount for 100 million shares will be 10.45 billion RMB [3]. - The last trading day for "Ningxing You 02" will be November 6, 2025, with the shares ceasing to trade on November 7, 2025 [4][5]. Financial Impact - The company has sufficient cash flow, and the redemption of "Ningxing You 02" will not significantly impact its financial status or operating results [6]. - After the redemption, the total number of preferred shares will decrease from 14.85 million to 4.85 million [6]. Delisting Information - "Ningxing You 02" will be delisted from the Shenzhen Stock Exchange on November 10, 2025 [6].

Core Viewpoint - The announcement from Ningbo Bank regarding the redemption of its preferred stock "Ningxing You 02" reflects a broader trend among banks to optimize financing costs and adapt to changing market conditions [1][2]. Group 1: Redemption of Preferred Stocks - Ningbo Bank's preferred stock "Ningxing You 02," issued in November 2018 with a total scale of 10 billion yuan (1 billion shares at 100 yuan each), will cease trading on November 7 and has been fully redeemed at a price of 104.5 yuan per share [1]. - Many banks have initiated redemption plans for preferred stocks this year, characterized by a "concentrated and large-scale" approach, including major banks like Bank of China and Industrial and Commercial Bank of China [2]. - The redemption of preferred stocks is driven by high coupon rates at issuance compared to current lower market rates, allowing banks to reduce capital costs by replacing them with cheaper capital instruments [2]. Group 2: Impact on Capital Management - The redemption of preferred stocks may create short-term liquidity pressures due to the large cash outflows required, but it is expected to enhance long-term capital efficiency by reducing interest expenses [3]. - Different types of banks are adopting varied strategies for redeeming preferred stocks, with large state-owned banks favoring simultaneous redemption and issuance to maintain capital adequacy, while regional banks often rely on internal profit accumulation post-redemption [3]. - The trend of banks redeeming high-interest preferred stocks to replace them with lower-cost capital tools is seen as a response to narrowing net interest margins and increasing profitability pressures [3]. Group 3: Future Trends in Capital Tools - The development of capital tools in the banking sector is expected to follow three trends: continuous optimization of tool structures, acceleration of innovative products, and more refined capital management practices [4]. - Market-based capital supplement tools are anticipated to diversify, supporting high-credit-quality banks in optimizing capital management through market issuance [4]. - Policies involving local government special bonds are expected to play a larger role in supplementing the capital of small and medium-sized banks [4].

Core Points - Ningbo Bank announced the redemption of its second tranche of preferred shares, "Ningxing You 02," on November 7, 2025, at a total price of RMB 104.5 per share, which includes the face value and unpaid dividends [2] Group 1 - The board of directors approved the redemption of the preferred shares during the 11th meeting of the 8th board session [2] - The redemption price consists of the face value of RMB 100 per share plus an unpaid dividend of RMB 4.5 per share [2] - Trading of "Ningxing You 02" will cease on the redemption date, November 7, 2025, and the shares will be delisted after the redemption is completed [2]

证券代码：002142 证券简称：宁波银行 公告编号：2025-041 优先股代码：140001、140007 优先股简称：宁行优01、宁行优02 宁波银行股份有限公司 关于优先股赎回结果暨摘牌的公告 本公司及董事会全体成员保证信息披露内容的真实、准确和完整， 没有虚假记载、误导性陈述或者重大遗漏。 重要内容提示： 1、宁行优02最后交易日：2025年11月6日 2、宁行优02赎回登记日：2025年11月6日 3、宁行优02停止交易日：2025年11月7日 4、宁行优 02 赎回款到账日：2025 年 11 月 7 日 5、宁行优 02 赎回价格：104.5 元/股（含税） 6、宁行优 02 摘牌日：2025 年 11 月 10 日 一、优先股赎回基本情况 宁波银行股份有限公司（以下简称"公司"）于2018年11月7 日非公开发行优先股1亿股（以下简称"宁行优02"），优先股代码： 140007。根据宁行优02募集说明书约定，经相关监管部门批准， 公司有权自发行结束日期满5年之日起，于每年的优先股股息支付 日全部或部分赎回本次发行的优先股。 1 2025年8月27日，公司第八届董事会第十一次会议审议通过了 《 ...

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]