EBSCN·2025-08-28 12:21Investment Rating - The report maintains an "Accumulate" rating for the company [1] Core Insights - The company reported a revenue of 105.76 billion, a year-on-year decrease of 3%, while the net profit attributable to shareholders was 36.48 billion, reflecting a year-on-year growth of 2.8% [4] - The annualized weighted average return on equity (ROE) was 9.77%, down by 0.92 percentage points year-on-year [4] - Revenue and profit growth rates improved sequentially compared to the first quarter, with revenue and profit growth rates narrowing their declines [5] - The bank's interest income decreased by 1.9% year-on-year, while non-interest income fell by 5.1%, with the decline in non-interest income significantly narrowing compared to the first quarter [5] - The bank's asset structure has been optimized, with interest-earning assets and loans growing by 7.8% and 3.7% year-on-year, respectively [6] Summary by Sections Financial Performance - The company achieved a revenue of 1057.6 billion, down 3% year-on-year, and a net profit of 364.8 billion, up 2.8% year-on-year [4] - The profit growth rate improved by 1.1 percentage points compared to the first quarter [5] - The bank's net interest income decreased by 1.9%, while non-interest income fell by 5.1%, with the latter's decline narrowing significantly [9] Asset Quality - The non-performing loan (NPL) ratio remained stable at 1.16% as of the end of the second quarter [10] - The provision coverage ratio was 207.5%, slightly up from the previous quarter [10] Capital Adequacy - As of the end of the second quarter, the core Tier 1 capital adequacy ratio was 9.49%, showing a slight increase [11] - The bank announced a mid-year dividend payout ratio of 30.7%, up from 30.5% in the previous year [11] Earnings Forecast and Valuation - The report forecasts earnings per share (EPS) for 2025-2027 at 1.25, 1.29, and 1.33 respectively, with the current stock price corresponding to price-to-book (PB) ratios of 0.6, 0.56, and 0.52 [11][12]