ZHONGTAI SECURITIES·2025-08-18 08:02Investment Rating - The industry investment rating is "Overweight (Maintain)" [2] Core Viewpoints - The report highlights a marginal improvement in net profit growth, with a year-on-year decline of 1.2% in net profit for the first half of 2025, showing a recovery from a 2.3% decline in the first quarter [25] - The overall asset quality is improving, with a decrease in non-performing loan (NPL) ratio and an increase in the provision coverage ratio [10][16] - The net interest margin remains stable, with a slight decrease of 1 basis point to 1.42% in the second quarter of 2025, but is expected to stabilize and slightly recover in the second half of the year [15][17] - Credit growth is rebounding due to a low base effect, with total credit growth year-on-year increasing to 7.5% in the second quarter of 2025 [20][22] - The capital adequacy ratio continues to improve, with the core Tier 1 capital adequacy ratio reaching 10.93% by the end of the second quarter of 2025 [27] Summary by Sections Asset Quality - The non-performing loan amount decreased, with the total NPL scale at 3.43 trillion yuan, down 2 basis points to 1.49% [13][11] - The provision coverage ratio improved to 211.97%, up 3.84 percentage points [16][14] Net Interest Margin - The net interest margin is stable, with a slight decrease of 1 basis point to 1.42% in the second quarter of 2025 [15][17] Scale - The industry asset growth rate increased to 8.9%, with credit growth rising to 7.5% in the second quarter of 2025 [20][22] Net Profit - The overall net profit growth is improving, with a year-on-year decline of 1.2% in the first half of 2025 [25] Capital - The capital adequacy ratio continues to rise, with the core Tier 1 capital adequacy ratio at 10.93% by the end of the second quarter of 2025 [27]