PAB(SZ:000001) Xin Lang Cai Jing·2025-08-24 12:31Core Viewpoint - Ping An Bank reported a year-on-year revenue decline of 10.0% for the first half of 2025, with a net profit decrease of 3.9%, indicating a narrowing of revenue decline primarily due to reduced pressure from non-interest income and continued optimization of liability costs [1] Financial Performance - Revenue decline has improved from 13.1% in Q1 2025 to 10.0% in H1 2025, while net profit decline has also lessened from 5.6% in Q1 2025 to 3.9% in H1 2025 [1] - Net interest income decreased by 9.3% year-on-year, with a quarterly decline of 4.7% in Q2 2025, and the annualized net interest margin fell by 7 basis points to 1.76% [1][2] - Non-interest income showed a year-on-year decline of 11.3%, with net fee income down 2.0% and other non-interest income down 19.3% [2] Asset Quality - The non-performing loan (NPL) ratio improved to 1.05% in Q2 2025, with a net NPL generation rate of 0.98% [3] - Retail loan NPL ratio decreased to 1.27%, with mortgage NPL at 0.28% and credit card NPL at 2.30% [3] - Provision coverage ratio increased to 238.48%, enhancing risk resilience [3] Dividend and Investment Outlook - The mid-year dividend for 2025 is set at 2.36 yuan per 10 shares, totaling 4.58 billion yuan, which represents 20.05% of the net profit attributable to ordinary shareholders [4] - The company is projected to have price-to-book ratios of 0.51X, 0.48X, and 0.45X for 2025E, 2026E, and 2027E respectively, with expectations of performance stabilization driven by liability cost optimization and improvement in retail asset quality [4]