Ge Long Hui·2025-10-30 20:24Core Insights - Qingdao Bank reported a revenue growth of 5.0% year-on-year in Q3 2025, compared to 8.8% in the first half of 2025, while net profit increased by 15.5% year-on-year, slightly down from 16.1% in 1H 2025 [1] - The bank's net interest margin showed resilience, with a slight decrease of 2 basis points to 1.66% in Q3 2025, while the annualized asset yield decreased by 4 basis points to 3.52% [1] - The bank's loan growth remained robust, with total loans increasing by 13.3% year-on-year, driven primarily by corporate loans, which grew by 19%, while retail loans faced a decline of 4.8% [1] Revenue and Profitability - Q3 2025 revenue growth was impacted by fluctuations in the bond market, leading to pressure on other non-interest income, which declined by 10.7% year-on-year [2] - The bank's fee income showed signs of recovery, with a year-on-year decline of only 3.5% in Q3 2025, compared to a 13.4% decline in 1H 2025 [3] Asset Quality - The non-performing loan (NPL) ratio slightly decreased to 1.10% in Q3 2025, with a year-on-year decline in the NPL generation rate by 20 basis points [3] - The provision coverage ratio improved, rising by 17.2 percentage points to 269.99% in Q3 2025, indicating a strengthening of the bank's asset quality [3] Capital and Valuation - The core Tier 1 capital adequacy ratio decreased by 30 basis points to 8.75% [4] - The bank's projected price-to-book (PB) ratios for 2025, 2026, and 2027 are 0.77X, 0.55X, and 0.51X, respectively, while the price-to-earnings (PE) ratios are projected at 6.16X, 5.55X, and 5.04X [4] - The bank is expected to maintain favorable growth in credit and performance, leveraging its roots in Qingdao and the economic dynamics of Shandong [4]