Core Viewpoint - Pacific Securities reports that Chongqing Bank is experiencing steady growth in corporate business driven by regional strategic initiatives, effective management of liability costs supporting margin performance, and continuous improvement in asset quality. The bank's projected operating revenue for 2025-2027 is 14.516 billion, 15.515 billion, and 16.677 billion yuan, with net profit attributable to shareholders of 5.363 billion, 5.747 billion, and 6.214 billion yuan, respectively, leading to a PB valuation of 0.40, 0.37, and 0.34 times based on the closing price on October 10. The initial coverage rating is "Buy" [1]. Financial Performance - In the first half of 2025, the company achieved revenue of 7.527 billion yuan, a year-on-year increase of 8.24%, and a net profit attributable to shareholders of 3.190 billion yuan, up 5.39% year-on-year. The annualized weighted average ROE was 11.52%, a decrease of 0.25 percentage points year-on-year [2]. Loan Growth and Corporate Business - The company benefits significantly from regional strategies such as the "Chengdu-Chongqing Economic Circle," with strong loan growth. Total loans increased by 13.63% from the beginning of the year, with corporate loans rising by 20.65% to 377.638 billion yuan, becoming the main driver of scale expansion. Retail loan growth was more moderate, increasing by 2.03% [3]. Liability Cost Management - The company effectively managed liability costs, resulting in a net interest margin increase of 8 basis points to 1.35%. This was driven by a significant reduction in the average cost of interest-bearing liabilities, which fell by 36 basis points to 2.29%, exceeding the decline in the average yield on interest-earning assets by 28 basis points. The net interest spread for the first half of 2025 was 1.39%, down 3 basis points, with a notable decrease in customer deposit costs [4]. Non-Interest Income Challenges - Non-interest income has become a drag on performance, with net fee and commission income declining by 28.62% to 365 million yuan, primarily due to a 59.77% drop in income from agency wealth management services. The company faced challenges in its wealth management business amid the transition to net value-based products. However, it achieved 1.255 billion yuan in net trading and securities investment income, an increase of 7.63%, partially offsetting the decline in non-interest income [5]. Asset Quality Improvement - As of the end of the reporting period, the company's non-performing loan ratio decreased by 8 basis points to 1.17%, with both the proportion of special mention and overdue loans declining. The special mention ratio and overdue ratio were 2.05% and 1.58%, down 59 basis points and 15 basis points, respectively. The non-performing loan ratio for corporate loans decreased by 15 basis points to 0.75%, while the retail loan non-performing ratio increased by 30 basis points to 3.01%, mainly due to personal operating loans and credit cards. The provision coverage ratio increased by 3.19 percentage points to 248.27%, further strengthening the safety cushion [6].