Bank of Chengdu(SH:601838) EBSCN·2025-08-27 10:02Investment Rating - The report maintains an "Accumulate" rating for Chengdu Bank (601838.SH) with a current price of 17.86 CNY [1]. Core Views - Chengdu Bank's revenue and profit growth have accelerated, with a 5.9% year-on-year increase in revenue to 12.27 billion CNY and a 7.3% increase in net profit to 6.62 billion CNY in the first half of 2025 [3][4]. - The bank's return on average equity (ROAE) stands at 15.9%, a decrease of 2.2 percentage points year-on-year [3]. - The bank's asset quality remains strong, with a non-performing loan (NPL) ratio of 0.66% and a provision coverage ratio of 452.7% as of the end of Q2 2025 [11][12]. Summary by Sections Revenue Performance - Chengdu Bank's revenue, pre-provision profit, and net profit growth rates for the first half of 2025 were 5.9%, 6.8%, and 7.3%, respectively, showing an acceleration compared to Q1 [4]. - Net interest income and non-interest income growth rates were 7.6% and -0.2%, respectively, indicating a slight recovery in net interest income [4]. Asset and Loan Growth - As of the end of Q2 2025, Chengdu Bank's interest-earning assets and loan growth rates were 12.2% and 18%, respectively, reflecting an increase in the pace of expansion [5]. - The bank's corporate loans grew by 19.1% year-on-year, while retail loans grew at a slower rate of 12.9% [6]. Deposit Growth - The bank's interest-bearing liabilities and deposit growth rates were 13.7% and 14.7%, respectively, with a continued trend towards more fixed-term deposits [7]. - The proportion of fixed-term deposits increased to 70% by the end of Q2 2025 [7]. Net Interest Margin - The net interest margin (NIM) for the first half of 2025 was 1.62%, a decrease of 4 basis points compared to 2024 [8][9]. - The bank's interest-earning asset yield and interest-bearing liability cost rates were 3.57% and 1.98%, respectively [9]. Non-Interest Income - Non-interest income for the first half of 2025 was 2.5 billion CNY, a decrease of 45% year-on-year, primarily due to reduced fees from wealth management [10]. - Other non-interest income increased by 9.7% year-on-year, supported by trading gains from bond investments [10]. Risk and Capital Adequacy - The bank's NPL ratio remained stable at 0.66%, with a slight increase in the attention ratio to 0.44% [11]. - As of the end of Q2 2025, the bank's capital adequacy ratios were 8.61% for core tier 1, 9.24% for tier 1, and 13.13% for total capital [12]. Earnings Forecast and Valuation - Chengdu Bank's earnings per share (EPS) forecasts for 2025-2027 are 3.16, 3.27, and 3.35 CNY, respectively [12]. - The current stock price corresponds to a price-to-book (PB) ratio of 0.85 for 2025 and a price-to-earnings (PE) ratio of 5.65 [12].