NJBK(SH:601009) EBSCN·2025-08-29 12:42Investment Rating - The report maintains a "Buy" rating for Nanjing Bank (601009.SH) with a current price of 11.12 CNY [1]. Core Views - Nanjing Bank's revenue and profit growth have accelerated, with a "double U" development curve solidifying [4]. - The bank achieved an operating income of 28.5 billion CNY in the first half of 2025, representing an 8.6% year-on-year increase, and a net profit attributable to shareholders of 12.6 billion CNY, up 8.8% year-on-year [3][4]. - The annualized weighted average return on equity (ROE) for the first half of the year was 15.3%, a decrease of 0.6 percentage points year-on-year [3]. Revenue and Profit Growth - Revenue and profit growth rates for the first half of 2025 were 8.6%, 9.6%, and 8.8% respectively, showing improvements compared to the first quarter [4]. - The net interest income and non-interest income growth rates were 22.1% and -4.3%, respectively, with net interest income maintaining double-digit growth [4]. Asset and Loan Growth - As of the end of Q2 2025, the growth rates for interest-earning assets and loans were 26.7% and 15%, respectively, indicating a steady increase in scale [5]. - The bank added 130.8 billion CNY in loans during the first half of the year, with significant contributions from corporate and retail loans [5]. Deposit Growth - Deposits increased steadily, with a year-on-year growth rate of 16% as of the end of Q2 2025 [6]. - The bank added 149.4 billion CNY in deposits in the first half of the year, with a notable increase in both fixed and current deposits [6]. Net Interest Margin (NIM) - The NIM for the first half of the year was 1.86%, a slight decrease of 8 basis points compared to 2024 [7][8]. - The bank's interest-earning asset yield and loan yield were 3.72% and 4.56%, respectively, both down from 2024 [7]. Non-Interest Income - Non-interest income for the first half of the year was 12.8 billion CNY, reflecting a year-on-year decline of 4.3%, but the negative growth rate narrowed compared to Q1 [9]. Asset Quality - The non-performing loan (NPL) ratio remained low at 0.82% as of the end of Q2 2025, with a coverage ratio of 312% [10]. - The bank's risk compensation ability remains strong, with a slight decrease in the provision coverage ratio [10]. Capital Adequacy - As of the end of Q2 2025, the core Tier 1 capital ratio was 9.5%, indicating an increase from the previous quarter [11]. - Major shareholders have shown confidence in the bank's future by increasing their holdings [11]. Profit Forecast and Valuation - The report forecasts net profits for 2025-2027 to be 22.15 billion, 23.58 billion, and 24.50 billion CNY, respectively [12]. - The adjusted earnings per share (EPS) estimates for 2025-2027 are 1.79, 1.91, and 1.98 CNY, with corresponding price-to-book (PB) and price-to-earnings (PE) ratios indicating attractive valuations [12][13].