QILU BANK(SH:601665) Dongxing Securities·2025-09-08 10:46Investment Rating - The report maintains a "Recommended" rating for Qilu Bank, with a target price corresponding to a 0.73 times PB valuation for 2025 [5]. Core Views - Qilu Bank's revenue growth has improved quarter-on-quarter, with a 5.8% year-on-year increase in revenue to 6.78 billion yuan and a 16.5% increase in net profit to 2.73 billion yuan in the first half of 2025 [1][2]. - The bank's asset quality continues to improve, with a non-performing loan ratio of 1.09% and a provision coverage ratio of 343.2% as of June 2025 [4]. - The bank's net interest margin has stabilized and increased slightly to 1.53%, supported by improved loan growth and reduced funding costs [3][4]. Summary by Sections Financial Performance - In the first half of 2025, Qilu Bank achieved a revenue of 67.8 billion yuan, up 5.8% year-on-year, and a net profit of 27.3 billion yuan, up 16.5% year-on-year [1][2]. - The annualized weighted average ROE was 12.8%, an increase of 0.22 percentage points year-on-year [1]. - The bank's net interest income grew by 13.3% year-on-year, with a significant quarter-on-quarter increase of 5.4 percentage points [2]. Asset Quality - As of June 2025, the non-performing loan balance was 4.05 billion yuan, with a non-performing loan ratio of 1.09%, down 8 basis points from the previous quarter [4]. - The provision coverage ratio improved by 19.2 percentage points to 343.2% [4]. Loan and Deposit Growth - Total assets and loans grew by 16.0% and 13.7% year-on-year, respectively, with loan growth outpacing the average growth rate of financial institutions in Shandong province [3]. - Corporate loans increased by 15.7%, while retail loans decreased by 4.4% [3]. Future Outlook - The report forecasts net profit growth rates of 16.9%, 15.2%, and 14.9% for 2025, 2026, and 2027, respectively, with corresponding BVPS of 7.64, 8.70, and 9.93 yuan per share [5].