NJBK(SH:601009) Changjiang Securities·2025-09-05 10:43Investment Rating - The investment rating for the company is "Buy" and is maintained [9]. Core Views - The company's mid-year performance in 2025 continues to show a double U-shaped high-quality development, with a year-on-year revenue growth of 8.6% and a net profit growth of 8.8% in the first half of the year. The second quarter saw revenue and net profit growth both exceeding 10% [2][6]. - Total assets and loan growth have improved compared to the same period last year, with loans increasing by 10.4%, driven by a significant 12.7% growth in corporate loans. The net interest margin stands at 1.86%, down 8 basis points from the full year of 2024, with an accelerating improvement in funding costs expected to stabilize the margin [2][6]. - Asset quality remains robust, with a non-performing loan ratio of 0.84% at the end of the first half, and a provision coverage ratio of 312%, indicating a strong absolute level [2][6]. - The company's current price-to-book (PB) ratio is 0.76x, with an expected dividend yield of 4.8%, highlighting its attractive valuation [2][6]. Summary by Sections Financial Performance - In the first half of 2025, the company's revenue grew by 8.6% year-on-year, with Q1 growth at 6.5% and Q2 at 10.8%. Net profit increased by 8.8%, with Q1 at 7.1% and Q2 at 10.6% [6]. - The net interest income growth was 22.1%, with significant contributions from strong credit expansion in Q2. Non-interest income saw a decline of 4.3% [13]. - The cost-to-income ratio improved, decreasing by 0.6 percentage points to 25.1% [13]. Loan and Deposit Growth - Total assets increased by 12.0% compared to the beginning of the year, with loans growing by 10.4%. Corporate loans saw a notable increase of 12.7% [13]. - Retail loans grew by 3.7%, with housing loans increasing by 8.6% due to a recovery in the Nanjing real estate market [13]. Interest Margin and Cost - The net interest margin is reported at 1.86%, with a projected stabilization due to improving funding costs. The loan yield has decreased by 24 basis points to 4.56% [13]. - The cost of deposits has decreased by 23 basis points to 2.11%, contributing to the overall improvement in the interest margin [13]. Asset Quality - The non-performing loan generation rate has decreased, reflecting an increase in low-risk loans. The corporate loan non-performing rate is at 0.65%, while retail loans are at 1.43% [13]. - The company maintains a strong asset quality profile, with a provision coverage ratio of 312% [2][6].