Changshu Bank(SH:601128) Donghai Securities·2025-05-28 12:23Investment Rating - The investment rating for the company is "Buy" (maintained) [1][8]. Core Views - The company reported a strong performance in non-interest income and maintained prudent asset quality management [1]. - In Q1 2025, the company achieved operating revenue of 2.971 billion yuan, a year-on-year increase of 10.04%, and a net profit attributable to shareholders of 1.084 billion yuan, up 13.81% year-on-year [4][5]. - The total asset scale at the end of Q1 was 389.015 billion yuan, reflecting a year-on-year growth of 6.67%, with a non-performing loan ratio of 0.76%, down 1 basis point quarter-on-quarter [4][5]. - The net interest margin for the quarter was 2.61%, a decrease of 22 basis points year-on-year [4][5]. Summary by Sections Financial Performance - The company’s Q1 investment income and fair value changes amounted to 471 million yuan, a year-on-year increase of 9.06%, outperforming industry levels [5]. - The net commission income reached 71 million yuan, showing a significant year-on-year growth of 495.23% [5]. Asset Quality - The company maintained a stable overall asset quality, with a non-performing loan ratio of 0.76% at the end of Q1, down 1 basis point from the previous quarter [5]. - The company continues to adopt a cautious approach, increasing provisions, with asset impairment losses rising by 13% year-on-year [5]. Future Outlook - The company expects further downward pressure on interest margins due to a new round of interest rate cuts, which will benefit its deposit structure primarily composed of personal deposits [8]. - The updated profit forecast for 2025-2027 anticipates operating revenues of 11.712 billion, 12.225 billion, and 13.570 billion yuan, respectively, with net profits of 4.238 billion, 4.687 billion, and 5.214 billion yuan [8][29].