Wuxi Rural Commercial Bank(SH:600908) CMS·2025-09-01 08:06Investment Rating - The report maintains a strong buy recommendation for Wuxi Bank [6]. Core Views - Wuxi Bank has shown steady growth in both loans and deposits, with a loan growth rate of 9.76% year-on-year as of Q2 2025, primarily driven by corporate loans [2][4]. - The bank's non-performing loan ratio remains low at 0.78%, with a sufficient provision coverage ratio of 424.87%, ensuring asset quality and sustainability of earnings [2][4]. - Other non-interest income has also seen positive growth, increasing by 3.79% year-on-year, despite a high base from the previous year [3][4]. Summary by Sections 1. Performance - For the first half of 2025, Wuxi Bank reported a revenue growth of 3.44%, PPOP growth of 5.59%, and a net profit growth of 3.52% compared to the same period last year [1][13]. - The bank's total assets reached 272.83 billion, with total loans at 167.54 billion and total deposits at 234.92 billion [13]. 2. Non-Interest Income - The bank's non-interest income grew by 3.79% year-on-year, mainly from investment gains [3][33]. - However, net fee income saw a significant decline of 24.45% year-on-year, attributed to a drop in agency business revenue [3][33]. 3. Interest Margin and Asset Quality - The net interest margin for the first half of 2025 was reported at 1.46%, a slight decrease of 5 basis points from the beginning of the year [2][13]. - The non-performing loan ratio has remained stable at 0.78% for four consecutive quarters, indicating effective risk management [2][4]. 4. Capital and Shareholder Information - The bank's total market capitalization is approximately 13.4 billion, with a current share price of 6.1 yuan [6]. - The return on equity (ROE) stands at 9.4%, reflecting the bank's profitability [6][13].