BOB(SH:601169) EBSCN·2025-08-31 07:40Investment Rating - The report maintains a "Buy" rating for Beijing Bank (601169.SH) with a current price of 6.00 CNY [1] Core Views - Beijing Bank's performance improved in the first half of 2025, with operating income reaching 36.22 billion CNY, a year-on-year increase of 1%, and net profit attributable to shareholders of 15.05 billion CNY, up 1.1% year-on-year [3][4] - The bank's return on equity (ROE) was 10.64%, a decrease of 0.61 percentage points year-on-year [3] Financial Performance Summary - Revenue and net profit growth improved compared to Q1, with revenue growth of 1% and net profit growth of 1.1%, up 4.2 and 3.6 percentage points respectively from Q1 [4] - Net interest income grew by 1.2%, with a 2.6 percentage point increase from Q1, while non-interest income increased by 0.5%, up 8.3 percentage points from Q1 [4] - Non-interest income accounted for 28.6% of total income, remaining stable compared to the same period last year [4] Asset and Loan Growth - Interest-earning assets and loans grew by 22.2% and 10.3% year-on-year respectively, with interest-earning asset growth increasing by 6.9 percentage points from Q1 [5] - The bank's loan structure showed a significant focus on corporate loans, with new corporate loans amounting to 153 billion CNY, an increase of 23.6 billion CNY year-on-year [6] Deposit and Liability Management - As of the end of Q2, interest-bearing liabilities and deposits grew by 21.6% and 13.3% year-on-year, with a notable increase in interest-bearing liabilities of 488.5 billion CNY in the first half [7] - The bank's net interest margin was reported at 1.31%, narrowing by 16 basis points compared to 2024 [8] Non-Interest Income and Fee Growth - Non-interest income increased by 0.5% to 10.37 billion CNY, with net fee and commission income rising by 20.4% to 2.51 billion CNY [8] - Investment income contributed significantly to non-interest income, amounting to 7.58 billion CNY, a year-on-year increase of 4.2% [8] Asset Quality and Risk Management - The non-performing loan (NPL) ratio remained stable at 1.3%, with a decrease of 1 basis point year-to-date [9] - The bank's provision coverage ratio was 195.7%, down 2.3 percentage points from Q1 [9] Profit Forecast and Valuation - The report forecasts earnings per share (EPS) for 2025-2027 at 1.28, 1.33, and 1.38 CNY respectively, with the current stock price corresponding to price-to-book (PB) ratios of 0.44, 0.41, and 0.38 [10][11]