Ge Long Hui·2025-11-04 21:18Core Viewpoint - Zhejiang Zheshang Bank reported a decline in both revenue and net profit for the first three quarters of 2025, with revenue down 6.8% year-on-year and net profit down 9.6% year-on-year, indicating pressure on profitability and a need to monitor changes in wealth management demand [1][2]. Financial Performance - The bank achieved operating income of 48.9 billion yuan and a net profit attributable to shareholders of 11.7 billion yuan for the first three quarters of 2025 [1]. - The annualized net interest margin for the first three quarters was 1.67%, with a slight increase in the third quarter compared to the second quarter [2]. - Net interest income decreased by 3.2% year-on-year, while non-interest income fell by 14.3% year-on-year, primarily due to fluctuations in the bond market [1][2]. Asset Quality and Growth - Total assets grew by 3.4% year-on-year, with loans increasing by 3.8% and deposits by 7.6% [1][2]. - The non-performing loan ratio remained stable at 1.36%, indicating steady asset quality [2]. - The bank's provisioning coverage ratio decreased to 160%, but the risk compensation ability remains robust [2]. Investment Outlook - The bank is expected to enter an asset quality improvement cycle, with a new strategy aimed at enhancing profitability [3]. - Earnings per share (EPS) forecasts for 2025-2027 are projected at 0.57, 0.61, and 0.66 yuan, with corresponding profit growth rates of 3.7%, 5.9%, and 8.4% [3]. - The current stock price corresponds to a price-to-book (PB) ratio of 0.46x, 0.43x, and 0.40x for 2025-2027, suggesting a favorable investment opportunity [3].