Bank Of Shanghai(SH:601229) ZHONGTAI SECURITIES·2025-09-03 10:55Investment Rating - The report maintains an "Accumulate" rating for Shanghai Bank [4] Core Views - Shanghai Bank shows stable performance with improving risk metrics and resilient interest margins [6][4] - The bank is well-positioned in strategic economic regions such as the Yangtze River Delta and Greater Bay Area, enhancing its growth potential [6] Financial Performance Summary - For 2023, the projected operating revenue is CNY 56,754 million, with a year-on-year growth rate of 3.38% [4] - The forecasted net profit attributable to shareholders for 2024 is CNY 23,560 million, reflecting a growth rate of 4.88% [4] - The earnings per share (EPS) is expected to be CNY 1.89 in 2024, with a projected price-to-earnings (P/E) ratio of 5.10 [4] Revenue and Profit Growth - In the first half of 2025, revenue increased by 4.18% year-on-year, while net profit grew by 2.02% [6] - The bank's net interest margin slightly decreased to 1.10% in Q2 2025, with a year-on-year asset yield decline of 15 basis points [6] Asset Quality - The non-performing loan (NPL) ratio remained stable at 1.18%, with a decrease in the proportion of loans under special attention to 2.04% [6] - The coverage ratio for provisions decreased to 243.64%, indicating a need for monitoring [6] Loan and Deposit Growth - Total loans grew by 0.9% year-on-year, with corporate loans increasing by 0.2% and retail loans declining by 6.4% [6] - Deposits rose by 1.8% year-on-year, with a notable increase in demand deposits [6] Sector Performance - The bank's credit growth is primarily driven by the manufacturing sector, which saw a 12.2% increase, while retail lending faced challenges [6] - The structure of deposits shows a strong performance in demand deposits, which accounted for 34.7% of total deposits, up 0.7 percentage points from the beginning of the year [6]