常熟银行（601128）：营收盈利韧性高，风险抵补能力强

Investment Rating - The report maintains a "Buy" rating for the company [1] Core Insights - The company demonstrated strong revenue and profit resilience, with a year-on-year revenue increase of 10.1% to 6.06 billion yuan and a net profit increase of 13.5% to 1.97 billion yuan in the first half of 2025 [3][4] - The return on average equity (ROAE) improved to 13.3%, up by 0.05 percentage points year-on-year [3][4] - The bank's asset quality remains stable, with a non-performing loan (NPL) ratio of 0.76% and a provision coverage ratio of 489.5% [7][9] Revenue and Profitability - The company's revenue and net profit growth rates for the first half of 2025 were 10.1% and 13.5%, respectively, showing resilience in performance [4] - The second quarter of 2025 saw a revenue growth of 10.2% and a net profit growth of 13.2% compared to the same period last year [4] - The bank's total assets and loans grew by 9.2% and 5.2% year-on-year, respectively, indicating a steady expansion [4][5] Asset and Liability Management - The bank's total liabilities and deposits grew by 9% and 9.9% year-on-year, respectively, with a notable increase in deposit growth in the second quarter [5] - The loan-to-deposit growth rate difference widened to 4.7 percentage points, indicating a good match in growth between loans and deposits [5] Interest Margin and Cost Control - The report anticipates a narrowing of the interest margin decline due to effective cost control on liabilities and adjustments in deposit rates [6] - The bank has adjusted its deposit rates multiple times this year, which is expected to gradually alleviate the trend towards longer-term deposits [5][6] Capital Adequacy and Future Growth - The company has a strong capital replenishment capability, supported by a 6 billion yuan convertible bond that is expected to convert favorably [8] - The bank's earnings growth forecast for 2025-2027 is maintained at 11.4%, 10.7%, and 6%, respectively, with adjusted EPS estimates of 1.28, 1.42, and 1.50 yuan [9][10]