QILU BANK(SH:601665) Xinda Securities·2025-07-26 12:50Investment Rating - The investment rating for Qilu Bank is "Accumulate" [1] Core Views - Qilu Bank's performance remains strong, with a notable increase in revenue and profit in the first half of 2025, driven by a robust expansion of its balance sheet and improved asset quality [2][3][6] - The bank's total assets exceeded 750 billion yuan, growing by 16.02% year-on-year, with loans and deposits also showing significant growth [3] - The bank's net interest income and fee income both increased by over 13%, contributing to a stable revenue growth outlook [3][6] - Non-performing loan ratios have improved, indicating better asset quality and risk management [3][6] Summary by Sections Financial Performance - In the first half of 2025, Qilu Bank achieved operating revenue of 6.782 billion yuan, a year-on-year increase of 5.76%, and a net profit attributable to shareholders of 2.734 billion yuan, up 16.48% [2][3] - The bank's return on equity (ROE) was 12.80%, an increase of 0.14 percentage points compared to the same period last year [2] Asset Quality - As of the end of the first half of 2025, the non-performing loan ratio was 1.09%, down 10 basis points from the end of 2024, and the provision coverage ratio improved to 324.24% [3][6] - The bank has been actively managing its loan portfolio, leading to a decrease in non-performing loans and an overall improvement in asset quality [3] Growth Prospects - Qilu Bank is expected to maintain a strong growth trajectory, with projected net profit growth rates of 17.65%, 18.01%, and 17.99% for 2025 to 2027 [6] - The bank's earnings per share (EPS) are forecasted to be 1.21 yuan, 1.43 yuan, and 1.69 yuan for the same period [6] Capital Position - The bank's capital position is set to improve further with the potential conversion of convertible bonds, which will enhance its core tier one capital [6]