东兴证券：给予常熟银行买入评级

Core Viewpoint - Changshu Bank reported a strong performance in the first half of 2025, with double-digit growth in profits and an increase in the mid-term dividend payout ratio, reflecting confidence in future earnings growth and capital adequacy [1][2][7]. Financial Performance - In 1H25, Changshu Bank achieved revenue of 6.06 billion, pre-provision profit of 3.93 billion, and net profit of 1.97 billion, representing year-on-year growth of 10.1%, 11.3%, and 13.5% respectively [2][3]. - The annualized weighted average ROE was 13.34%, an increase of 0.06 percentage points year-on-year [2]. - Non-interest income grew significantly by 57.3%, with fee income increasing by 41.9% due to strong performance in self-operated wealth management and agency services [3]. Asset Quality and Loan Growth - As of June, the total assets of Changshu Bank increased by 9.2% year-on-year, with loans and financial investments growing by 5.2% and 12.7% respectively [4]. - The non-performing loan (NPL) ratio was 0.76%, stable compared to the previous quarter and down 1 basis point year-on-year [6]. - The bank's focus on small and scattered loans has led to positive growth in personal operating loans, with a significant reduction in loan loss [4]. Cost of Liabilities and Interest Margin - The cost of liabilities improved significantly, with deposits growing by 9.9% year-on-year and a reduction in interest rates on deposits [5]. - The net interest margin decreased by 21 basis points to 2.58%, but remains at an industry-leading level [5]. Dividend Policy - Changshu Bank announced an increase in the mid-term dividend payout ratio to 25.3%, up 5.5 percentage points from 2024, reflecting confidence in future profitability [7]. Investment Outlook - The bank is expected to see net profit growth of 13.1%, 12.8%, and 12.3% for 2025-2027, with corresponding BVPS of 9.85, 11.37, and 13.08 [8]. - The current closing price corresponds to a 2025 PB valuation of 0.8 times, indicating a favorable investment opportunity [8].