Zhongtai Securities(SH:600918) 智通财经网·2025-08-31 23:49Core Viewpoint - Listed banks in China have shown a positive growth trend in revenue and net profit for the first half of 2025, with stable asset quality and expenses, indicating a steady improvement in performance for the year ahead [1][2][7]. Revenue and Profit Analysis - Revenue growth turned positive in 1H25, with a year-on-year increase of 0.8%, compared to a decline of 1.8% in 1Q25, driven by low base effects and non-interest income recovery [2][3]. - Net profit also saw a year-on-year increase of 0.8% in 1H25, improving from a decline of 1.2% in 1Q25, supported by revenue growth and cost improvements [2][3]. - The overall asset quality remains stable, with a non-performing loan (NPL) generation rate of 0.75% in 2Q25, showing a slight year-on-year increase of 4 basis points [5][6]. Interest and Non-Interest Income - Net interest income for the industry decreased by 1.3% year-on-year in 1H25, but the growth rate of interest-earning assets increased by 9.7% [4]. - Non-interest income turned positive with a year-on-year growth of 6.6% in 1H25, driven by a recovery in fee income, which increased by 3.1% [4]. Asset Quality and Provisions - The industry maintained a stable asset quality, with the NPL ratio at 1.23% in 2Q25, remaining stable across various sectors [5][6]. - The provision coverage ratio increased by 59 basis points to 238.58% in 1H25, primarily driven by state-owned banks [6]. Investment Recommendations - The investment logic for bank stocks has shifted from "pro-cyclical" to "weak-cyclical," with high dividend yields becoming attractive during periods of economic stagnation [1][7]. - Two main investment themes are identified: regional banks with strong certainty and high dividend yield large banks, including major state-owned banks and selected joint-stock banks [1][7].