Ping An Securities·2025-10-31 10:57Investment Rating - The investment rating for the company is "Recommended" [1] Core Views - The company achieved a year-on-year profit growth of 0.6% in the first three quarters of 2025, marking a turnaround from a decline of 1.4% in the first half of the year. Revenue also grew by 0.8% year-on-year, although the growth rate has slowed compared to the first half of the year [4][7] - The net interest margin (NIM) for the first three quarters of 2025 was 1.36%, a decrease of 16 basis points year-on-year, indicating a continued decline in interest margins [7][8] - The non-performing loan (NPL) ratio stood at 1.32% at the end of the third quarter, showing a slight decrease, which reflects stable asset quality [8] Summary by Sections Financial Performance - For the first three quarters of 2025, the company reported operating income of 573.7 billion yuan and a net profit attributable to shareholders of 257.4 billion yuan [4][9] - The annualized return on equity (ROE) was 10.3% [4] - Total assets reached 45.4 trillion yuan, a year-on-year increase of 10.9%, with loans and deposits both growing by 7.5% [4][7] Revenue Breakdown - The company's net interest income decreased by 3.0% year-on-year, but the decline has narrowed compared to the first half of the year [7] - Non-interest income grew by 14.0% year-on-year, although the growth rate has slowed from the first half of the year [7][9] Asset Quality - The company maintained a high provision coverage ratio of 235%, indicating strong risk management [8] - The loan growth rate was 7.5%, with corporate loans showing a slight increase [7][9] Future Outlook - The company is expected to maintain its earnings forecasts for 2025-2027, with projected earnings per share (EPS) of 1.30, 1.34, and 1.39 yuan respectively [8][10] - The current stock price corresponds to a price-to-book (P/B) ratio of 0.69x for 2025, indicating potential value for investors [8]