PAB(SZ:000001) Xin Lang Cai Jing·2025-08-24 08:30Core Viewpoint - Ping An Bank reported a decline in revenue and net profit for the first half of 2025, but the rate of decline has narrowed compared to the first quarter of 2025, indicating some improvement in financial performance [1][2]. Financial Performance - In 1H25, Ping An Bank achieved revenue of 69.385 billion yuan, a year-on-year decrease of 10.0%, with the decline narrowing by 3.0 percentage points compared to 1Q25 [1]. - The net profit attributable to shareholders was 24.870 billion yuan, down 3.9% year-on-year, with a decline narrowing by 1.7 percentage points compared to 1Q25 [1]. - The net interest margin stood at 1.80%, a decrease of 3 basis points from 1Q25, while the non-performing loan ratio was 1.05%, down 1 basis point from the end of 1Q25 [1]. Revenue Breakdown - The decline in performance was primarily due to pressure on interest income, which fell by 9.3% year-on-year, with a slight improvement from a 9.4% decline in 1Q25 [2]. - Non-interest income showed improvement, with fee and commission income at 12.739 billion yuan, down 2.0% year-on-year, but significantly better than the 8.2% decline in 1Q25, driven by growth in wealth management fees [2]. - Other non-interest income was 12.139 billion yuan, down 19.3% year-on-year, but improved from a 32.7% decline in 1Q25, mainly due to investment income from accounts [2]. Loan and Asset Quality - As of the end of 1H25, the loan balance was 3.4095 trillion yuan, a slight year-on-year decrease of 0.1%, but an improvement from a 1.0% decline at the end of 1Q25 [3]. - Retail loans decreased by 41.2 billion yuan, a significant reduction compared to a 156.4 billion yuan decrease in the same period last year, with a focus on reducing high-risk loans [3]. - Corporate loans increased by 9.0% year-on-year to 1.5386 trillion yuan, with a net increase of 117.4 billion yuan in the first half of the year [3]. Interest Margin and Cost Management - The net interest margin of 1.80% reflects a 16 basis point year-on-year decline, influenced by lower loan rates and a decrease in high-yield, high-risk assets [4]. - The yield on loans and advances decreased by 12 basis points to 4.03%, while the cost of deposits fell by 5 basis points to 1.76% [4]. Strategic Transformation and Risk Management - The bank's non-performing loan ratio was 1.05%, showing a decline, particularly in retail loans, which saw a decrease in the non-performing loan ratio to 1.27% [5]. - The provision coverage ratio improved to 238.48%, indicating enhanced risk mitigation capabilities [5]. - The strategic transformation in retail banking is showing positive results, with expectations for gradual recovery in retail business performance [5].