ZHONGTAI SECURITIES·2025-10-29 07:54Investment Rating - The investment rating for Qingdao Bank is "Buy (Maintain)" [4][7] Core Insights - Qingdao Bank's performance remains robust with continuous improvement in asset quality. The bank's revenue growth is supported by strong loan growth, particularly in corporate lending, while retail lending faces some pressure [6][7] - The bank's net interest margin shows resilience despite slight fluctuations, and non-interest income has seen some recovery, although it remains under pressure from market volatility [6][7] Financial Performance Summary - For 3Q25, the bank reported a year-on-year revenue growth of 5.0%, while net profit increased by 15.5%. The annualized net interest margin decreased slightly to 1.66% [6] - The bank's total assets and loans grew by 15.1% and 13.3% year-on-year, respectively, with corporate loans increasing by 19% and retail loans declining by 4.8% [6] - The bank's non-interest income showed a year-on-year decline of 10.7% in 3Q25, with fee income improving but still negative [6][7] Asset Quality - The non-performing loan (NPL) ratio slightly decreased to 1.10%, with a NPL generation rate of 0.48%, down 20 basis points year-on-year [6][7] - The provision coverage ratio improved to 269.99%, indicating a strong buffer against potential loan losses [6][7] Capital and Valuation - The bank's core Tier 1 capital adequacy ratio decreased to 8.75%. The projected price-to-earnings (P/E) ratios for 2025, 2026, and 2027 are 6.16X, 5.55X, and 5.04X, respectively, while the price-to-book (P/B) ratios are 0.77X, 0.55X, and 0.51X [4][7]