Ge Long Hui·2025-11-01 13:15Core Viewpoint - Minsheng Bank's Q3 2025 performance aligns with expectations, showing a revenue growth of 4.6% year-on-year, while net profit decreased by 10.6% due to proactive risk management efforts [1][2]. Financial Performance - Q3 2025 revenue increased by 4.6% year-on-year, with a cumulative revenue growth of 6.7% for the first three quarters [1]. - Q3 2025 net profit attributable to shareholders decreased by 10.6%, with a cumulative decrease of 6.4% for the first three quarters [1]. - Net interest margin (NIM) improved significantly to 1.47% in Q3 2025, up 5 basis points year-on-year, and increased from 1.39% in the first half of the year [1]. - Interest income for Q3 2025 and the first three quarters grew by 4.6% and 2.4% year-on-year, respectively [1]. Non-Interest Income - Other non-interest income rose by 8.2% year-on-year in Q3 2025, with a cumulative increase of 36.6% for the first three quarters [2]. - Retail and private banking assets under management (AUM) reached 3.2 trillion yuan, growing by 9.5% and 17.2% year-to-date, respectively [2]. - Net fee income increased by 1.3% year-on-year in Q3 2025, with a cumulative growth of 0.7% for the first three quarters [2]. Asset Quality - The non-performing loan (NPL) ratio remained stable at 1.48% at the end of Q3 2025, with a slight increase in the attention rate to 2.74% [2]. - Provision coverage ratio decreased by 2.1 percentage points to 143.0% [2]. - The bank is actively addressing risks related to related parties and the real estate sector, with improvements in risk management and compliance over the past five years [2]. Profit Forecast and Valuation - The profit forecast and outperform industry rating remain unchanged, with A and H shares trading at 0.3x 2025E/2026E P/B [2]. - Target prices for A and H shares are maintained at 6.4 yuan and 6.31 HKD, respectively, indicating a potential upside of 62% and 53.5% [2].