Wuxi Rural Commercial Bank(SH:600908) EBSCN·2025-10-28 05:41Investment Rating - The report maintains an "Accumulate" rating for Wuxi Bank (600908.SH) with a current price of 6.18 CNY [1]. Core Insights - Wuxi Bank's revenue and profit have shown steady growth, with a 3.9% year-on-year increase in revenue to 3.77 billion CNY and a 3.8% increase in net profit to 1.83 billion CNY for the first three quarters of 2025 [3][4]. - The bank's non-interest income has accelerated, contributing positively to overall performance despite pressures from interest margin contraction and rising operating costs [4][8]. - The bank's asset quality remains strong, with a non-performing loan ratio of 0.78% and a provision coverage ratio of 427.9% as of Q3 2025, indicating robust risk mitigation capabilities [9][21]. Revenue and Profit Performance - For the first three quarters, Wuxi Bank's revenue, pre-provision profit, and net profit grew by 3.9%, 3.9%, and 3.8% respectively, with slight adjustments compared to the first half of the year [4]. - The growth in net interest income and non-interest income was recorded at 1.5% and 9.6%, respectively, with non-interest income showing significant improvement [4][8]. Loan and Deposit Growth - As of Q3 2025, the bank's total loans and deposits grew by 9.6% and 11.2% year-on-year, respectively, indicating a recovery in deposit growth and a stable loan growth rate [6][9]. - Corporate loans continued to show double-digit growth, while retail loans faced challenges due to weak consumer demand [5][6]. Interest Margin and Non-Interest Income - The bank's interest margin has continued to narrow, with a decrease of 4 basis points compared to the first half of the year, attributed to insufficient effective financing demand and intensified competition [7]. - Non-interest income reached 1.16 billion CNY, growing by 9.6% year-on-year, although its proportion of total revenue slightly decreased to 31% [8]. Asset Quality and Capital Adequacy - The bank's non-performing loan ratio remained low at 0.78%, with a stable performance in core indicators [9][20]. - Capital adequacy ratios as of Q3 2025 were reported at 11.77% for core tier one, 12.87% for tier one, and 14.03% for total capital, indicating a solid capital buffer for future growth [21][22]. Earnings Forecast and Valuation - The earnings per share (EPS) estimates for 2025-2026 have been adjusted to 1.07 CNY and 1.11 CNY, respectively, with corresponding price-to-book (PB) ratios of 0.59 and 0.54 [10][11]. - The bank's focus on retail and digital transformation, along with its strong asset quality, positions it well for future growth [10].