Changshu Bank(SH:601128) Xin Lang Cai Jing·2025-08-08 12:30Core Viewpoint - Changshu Bank reported a resilient performance in the first half of 2025, with revenue and net profit growth supported by scale expansion and investment income, despite challenges in loan demand and interest margin compression [1][5]. Financial Performance - In 1H25, Changshu Bank achieved revenue of 6.062 billion yuan, a year-on-year increase of 10.1%, with net profit attributable to shareholders reaching 1.969 billion yuan, up 13.51% year-on-year [1]. - Net interest income increased by 0.7% year-on-year, while non-interest income saw significant growth, particularly from investment gains of 1.201 billion yuan, which rose by 30.9% [1][2]. Loan and Asset Quality - As of the end of 1H25, the loan balance was 251.5 billion yuan, reflecting a year-on-year growth of 5.2%, with corporate loans focusing on key local industries [2]. - The non-performing loan (NPL) ratio remained stable at 0.76%, with improvements in asset quality across major sectors [4][5]. Cost of Liabilities - The net interest margin was 2.58%, a slight decrease of 3 basis points from 1Q25, while the cost of interest-bearing liabilities improved significantly to 1.98%, down 25 basis points from 2024 [3]. - The deposit cost rate decreased to 1.96%, benefiting from lower deposit rates and an increase in the proportion of demand deposits [3]. Future Outlook - The bank's provision coverage ratio stood at 489.53%, maintaining a leading position in the industry, indicating strong risk mitigation capabilities [5]. - The bank is expected to continue its steady performance, with projected net profits of 4.25 billion, 4.77 billion, and 5.39 billion yuan for 2025-2027, reflecting growth rates of 11.5%, 12.1%, and 13.0% respectively [5].