Ping An Securities·2025-09-03 06:44Investment Rating - The investment rating for the company is "Recommended" [1][3] Core Views - The report indicates that the net interest margin decline is narrowing, and the provision coverage is solid [6][10] - The bank's revenue for the first half of 2025 reached 394.3 billion yuan, a year-on-year increase of 2.2%, while the net profit attributable to shareholders was 162.1 billion yuan, a year-on-year decrease of 1.4% [5][11] - The bank's total assets reached 44.4 trillion yuan, a year-on-year growth of 10.3%, with loans and deposits growing by 7.9% and 6.1% respectively [5][10] Summary by Sections Financial Performance - The bank's net interest income decreased by 3.2% year-on-year, but the decline is less severe compared to the previous quarter [6][11] - Non-interest income saw a significant increase of 19.6% year-on-year, driven by a 35.4% growth in asset management revenue [6][11] - The annualized return on equity (ROE) for the first half of 2025 was 10.1% [5] Asset Quality - The non-performing loan (NPL) ratio remained stable at 1.33%, with a year-on-year decrease of 2 basis points [10] - The provision coverage ratio improved to 239%, indicating a solid buffer against potential loan losses [10][11] Future Outlook - The bank is expected to maintain its earnings forecasts for 2025-2027, with estimated earnings per share (EPS) of 1.30, 1.34, and 1.39 yuan respectively [10][11] - The current stock price corresponds to a price-to-book (PB) ratio of 0.72x for 2025, suggesting potential value for investors [10][11]