XIANMEN BANK(SH:601187) Zhong Jin Zai Xian·2025-12-04 02:24Core Viewpoint - Xiamen Bank has achieved significant asset growth and a turnaround in revenue and net profit, but underlying issues such as declining capital adequacy, low net interest margin, and reliance on non-recurring investment income indicate deeper structural problems in its growth strategy [1][8]. Financial Performance - As of September 2025, Xiamen Bank's total assets reached 442.56 billion yuan, an increase of 8.52% from the beginning of the year, driven primarily by a 14.15% growth in customer loans and advances [2]. - The bank's core Tier 1 capital adequacy ratio fell to 8.52%, down 1.39 percentage points from the start of the year, indicating increasing capital consumption [2]. - For the first three quarters of 2025, the bank reported operating income of 4.287 billion yuan, a year-on-year increase of 3.02%, and net profit of 2.026 billion yuan, a slight increase of 0.73% [3]. Loan Structure and Risk - The bank's loan structure has shifted dramatically towards corporate loans, which surged by 28.76% to 157.2 billion yuan, now accounting for 67% of total loans, while personal loans decreased by approximately 6% [2]. - The bank's non-performing loan ratio remains low at 0.8%, but there are significant concerns regarding the quality of assets, with a notable increase in restructured loans and overdue loans [5]. Profitability Concerns - The net interest margin is only 0.99%, significantly below the industry average of 1.42%, indicating a weak pricing power and reliance on volume to compensate for lower margins [3]. - Non-interest income has shown volatility, with a 21.72% year-on-year decline in the first half of 2025, primarily due to losses in fair value changes in the bond market [4]. Capital and Risk Management - The bank issued 1.9 billion yuan in perpetual bonds to bolster its capital base, but this does not address the fundamental issues of declining core Tier 1 capital [6][7]. - The bank faces significant litigation risks, with 101 unresolved lawsuits totaling 3.856 billion yuan, raising concerns about the effectiveness of its risk management systems [5][6]. Strategic Direction - Despite the challenges, the bank is attempting to focus on local manufacturing and green industries for corporate loan growth and has implemented measures to improve compliance and internal controls [6][7]. - However, the reliance on aggressive expansion and investment income rather than sustainable growth strategies raises questions about the long-term viability of its current business model [8].