Core Viewpoint - Dongguan Rural Commercial Bank (09889.HK) is facing dual pressures on performance and asset quality, with a significant decline in both revenue and net profit in the first half of 2025 compared to the previous year [1][3]. Financial Performance - In the first half of 2025, the bank reported operating income of 5.501 billion yuan, a year-on-year decrease of 14.02%, and a net profit of 2.629 billion yuan, down 17.07%, marking a continuous decline in net profit for two and a half years [1][3]. - The bank's net interest income was 4.237 billion yuan, a decrease of 9.92% year-on-year, while the net interest margin was 1.22%, down 0.18 percentage points [1][5]. Asset Quality - As of June 30, 2025, the non-performing loan (NPL) ratio stood at 1.87%, an increase of 0.03 percentage points from the end of the previous year, marking four and a half consecutive years of rising NPL ratios since the bank's listing [1][9]. - The bank's provision coverage ratio fell to 190.56%, a decrease of 17.16 percentage points, marking the first time it has dropped below 200% since its listing [11]. Loan Portfolio - The personal loan NPL ratio increased from 2.29% at the end of the previous year to 2.81% as of June 30, 2025, with significant increases in the NPL ratios for personal operating loans, credit card overdrafts, and personal consumption loans [2][10]. - The total assets of Dongguan Rural Commercial Bank exceeded 760.4 billion yuan, with total loans amounting to 394.4 billion yuan, reflecting a growth of 3.51% from the previous year [4]. Comparison with Peers - Compared to its peers, Dongguan Rural Commercial Bank's net interest margin is below average, with the average net interest margin for commercial banks in China at 1.42% and for rural commercial banks at 1.58% [7].
东莞农商行息差收窄净利连降两年半 拨备覆盖率跌至190%信用卡不良率9.24%