BANK OF CHANGSHA(SH:601577) Xin Lang Cai Jing·2025-11-03 10:28Core Viewpoint - Changsha Bank reported a steady growth in revenue and profit for the first three quarters of 2025, indicating a stable financial performance despite some challenges in net interest income [1][2]. Financial Performance - The company achieved an operating income of 19.7 billion yuan, a year-on-year increase of 1.29%, and a net profit attributable to shareholders of 6.56 billion yuan, up 6.0% year-on-year [1]. - Total assets grew by 10.7% year-on-year, with loan and deposit scales increasing by 11.7% and 8.9%, respectively [1][3]. Revenue Breakdown - Net interest income decreased by 2.9% year-on-year, attributed to base effects and interest margin performance [2]. - Non-interest income saw a significant increase of 15.0% year-on-year, with bond investment-related non-interest income rising by 16.8% [2]. - Fee and commission income grew by 9.3% year-on-year, indicating a need to monitor future demand for wealth management services [2]. Margin and Asset Quality - The annualized net interest margin for Q3 increased by 5 basis points to 1.55%, supported by cost benefits [3]. - The cost of interest-bearing liabilities decreased by 7 basis points to 1.66%, driven by lower benchmark rates and improved deposit structure [3]. - The non-performing loan ratio rose slightly by 1 basis point to 1.18%, while the coverage ratio and loan-to-deposit ratio improved, indicating stable asset quality [3]. Investment Outlook - Changsha Bank is well-positioned in the retail banking sector due to strong local consumer activity and ongoing improvements in its retail business model [4]. - The bank's earnings per share (EPS) forecasts for 2025-2027 are projected at 2.05, 2.20, and 2.38 yuan, with corresponding growth rates of 5.3%, 7.1%, and 8.5% [4]. - The current price-to-book (PB) ratios for 2025-2027 are 0.53x, 0.49x, and 0.44x, maintaining a "recommended" rating for the stock [4].