Bank of Chengdu(SH:601838) Sou Hu Cai Jing·2025-10-30 21:13Core Viewpoint - Chengdu Bank is facing significant financial challenges, highlighted by a dramatic decline in non-interest income and an over-reliance on local government financing platforms, which poses risks amid economic downturns and real estate issues [3][5][10]. Financial Performance - Non-interest income for Chengdu Bank fell by 52.88% year-on-year in Q3, with total non-interest income for the first three quarters at 3.036 billion, down 16.52% year-on-year [3][4]. - In Q3 alone, non-interest income dropped to 532 million from 1.129 billion in the same period last year, indicating a severe decline [3][4]. - The bank's operating income for Q3 was 5.491 billion, a decrease of 2.92% year-on-year, while net profit showed a slight increase of 0.16% to 2.876 billion [4]. Business Structure and Risks - Chengdu Bank's loan portfolio is heavily concentrated, with 78.55% of loans directed towards corporate clients, particularly local government financing platforms [7][8]. - The bank's reliance on local government financing is risky, especially if local fiscal conditions deteriorate, as evidenced by a 2.44% non-performing loan rate in the real estate sector, the highest among all industries [9][10]. - The bank's asset yield has decreased, with a significant increase in loan balances but a decline in profitability, indicating a classic case of "increasing revenue without increasing profit" [14][16]. Market Perception - Despite a year-on-year increase in net profit, the bank's stock price has plummeted, reflecting market concerns about future sustainability rather than current performance [17]. - The overall situation of Chengdu Bank mirrors the challenges faced by regional banks, which struggle with limited customer resources and increased risks due to reliance on local government and economic policies [9][17].