PAB(SZ:000001) Dongxing Securities·2025-10-28 03:13Investment Rating - The report maintains a "Strong Buy" rating for Ping An Bank [5] Core Views - The bank's net interest income shows marginal improvement, with a narrowing decline in revenue. For the first three quarters of 2025, Ping An Bank achieved revenue of 100.67 billion, a year-on-year decrease of 9.8%, with the decline slightly narrowing by 0.2 percentage points compared to the previous quarter [2] - The bank's asset quality remains stable, with a non-performing loan ratio of 1.05% as of the end of September, unchanged from the previous quarter [4] - The bank is undergoing a business transformation, focusing on retail banking, which is expected to enhance its competitive edge in the long term [6] Summary by Sections Financial Performance - For the first three quarters of 2025, Ping An Bank reported a net profit of 38.34 billion, down 3.5% year-on-year, with the decline narrowing by 0.4 percentage points compared to the previous quarter [2] - The annualized weighted average ROE stands at 11.09%, a decrease of 1.11 percentage points year-on-year [1] Asset Quality - The bank's non-performing loan ratio is stable at 1.05%, with a provision coverage ratio of 229.6%, down 8.9 percentage points from the previous quarter [4] - Retail loan balances have shown a slight increase, ending a trend of eight consecutive quarters of decline [3] Loan and Deposit Structure - As of the end of September, total assets increased by 0.4% year-on-year, with loans and bond investments growing by 1.0% and 2.6%, respectively [3] - The bank has optimized its asset structure, with a decrease in low-yield interbank assets and an increase in the proportion of loans [3] Interest Margin - The net interest margin for the first three quarters of 2025 is 1.79%, a year-on-year decrease of 14 basis points, but the decline is significantly less than the previous year's 40 basis points [4] - The cost of liabilities has improved, contributing to the stabilization of the net interest margin [4] Future Outlook - The report forecasts a net profit growth rate of -3.3%, +0.9%, and +3.7% for the years 2025, 2026, and 2027, respectively [9] - The closing price on October 24, 2025, was 11.56 yuan per share, corresponding to 0.48 times the 2025 PB [9]