业绩略有波动，区域行韧性强

Investment Rating - The report maintains an "Overweight" rating for the banking sector [7] Core Insights - The banking sector experienced a slight decline in revenue and profit in Q1 2025, with year-on-year changes of -1.7% in revenue, -2.0% in PPOP, and -1.2% in net profit attributable to shareholders, primarily due to declining interest margins and bond market volatility [12][23] - Despite the overall decline, certain regional banks showed resilience, with a focus on narrowing interest margin declines and improving deposit growth [12][3] - The report highlights potential investment opportunities in high-quality stocks such as Chongqing Rural Commercial Bank and China Merchants Bank, as well as Hong Kong-listed banks with attractive dividend yields [5][10] Summary by Sections Operating Overview - The banking sector's revenue and profit growth have declined, with major banks experiencing negative growth rates in net profit [12] - Interest margin performance varied, with a narrowing decline and ongoing optimization of funding costs [12][23] Profitability Breakdown - The cumulative net interest margin for listed banks was 1.43%, a decrease of 10 basis points from 2024, but the decline was less severe compared to the previous year [2][12] - Non-interest income saw a decline of 3.2% year-on-year, influenced by high base effects from 2024 [2][13] Asset and Liability Insights - Total assets and liabilities of listed banks grew by 7.5% and 7.7% year-on-year, respectively, indicating stable growth [3][14] - Loan growth remained steady at 8.0%, with new loans amounting to 7.5 trillion yuan, slightly higher than the previous year [3][14] Risk Perspective - The overall non-performing loan (NPL) ratio improved slightly to 1.23%, while the provision coverage ratio decreased to 238% [4][15] - The annualized NPL generation rate was 0.64%, indicating some hidden risk indicators [4][15] Market Outlook - The report anticipates that Q1 2025 may represent the low point for the year, with expectations for recovery in the latter part of the year [5][19] - The banking sector's price-to-book (PB) ratio is currently at 0.65, indicating a low valuation compared to historical levels [5][19]