兴业银行1H25业绩点评：利润增速转正，零售资产质量改善

Core Viewpoint - Industrial Bank reported a slight decline in revenue but a modest increase in net profit for the first half of 2025, indicating a stabilization in performance despite ongoing challenges in the banking sector [1] Financial Performance - Revenue for 1H25 reached 110.46 billion yuan, a year-on-year decrease of 2.3%, with the decline narrowing by 1.3 percentage points compared to Q1 2025 [1] - Net profit attributable to shareholders was 43.14 billion yuan, reflecting a year-on-year increase of 0.2%, with growth accelerating by 2.4 percentage points from Q1 2025 [1] Non-Interest Income - Net other non-interest income decreased by 7.0% to 23.63 billion yuan, but the decline was less severe than in Q1 2025, improving by 14.5 percentage points [1] Loan Growth and Structure - As of the end of 1H25, total loan balance was 5.9034 trillion yuan, up 4.1% year-on-year, slightly down from 5.0% at the end of 2024 [1] - Corporate loans saw a net increase of 227.1 billion yuan, with stable growth focused on key industries [1] Asset Quality and Interest Margin - The net interest margin for 1H25 was 1.75%, down 11 basis points year-on-year, consistent with 2024 [1] - The non-performing loan (NPL) ratio stood at 1.08%, unchanged from Q1 2025 and up 1 basis point from the end of the previous year [1] - NPL ratios in specific sectors such as manufacturing and real estate increased by 40 basis points and 36 basis points respectively since the beginning of the year [1] Investment Recommendation - The improvement in non-interest income and provisions has led to a positive growth outlook for Industrial Bank, with strong loan growth in technology and green sectors, and continued improvement in retail asset quality [1] - The bank is expected to maintain steady growth, with a "recommended" rating for investment [1]