Changshu Bank(SH:601128) Dongxing Securities·2025-10-31 14:30Investment Rating - The report maintains a "Strong Buy" rating for Changshu Bank [6] Core Views - Changshu Bank's credit issuance has shown marginal improvement, with a narrowing decline in net interest margin. The bank's performance in the first three quarters of 2025 indicates a year-on-year revenue growth of 8.2%, and net profit growth of 12.8% [1][5] - The bank's asset quality remains strong, with a non-performing loan ratio of 0.76% as of September, unchanged from the previous quarter. The provision coverage ratio stands at 463%, despite a quarter-on-quarter decrease of 26.6 percentage points [4][5] Summary by Sections Financial Performance - For the first three quarters of 2025, Changshu Bank reported revenues of 90.5 billion, pre-provision profit of 58.9 billion, and net profit of 33.6 billion, reflecting year-on-year increases of 8.2%, 9.5%, and 12.8% respectively [1][2] - The annualized weighted average ROE is 15.02%, up by 0.06 percentage points year-on-year [1] Credit and Loan Growth - As of September, total assets and loans increased by 10.9% and 7.1% year-on-year, with credit issuance accelerating in the third quarter. Corporate loans and personal loans grew by 10.6% and 2.5% respectively [3] - Retail loan growth has shown a quarterly increase, with incremental growth of 3.3 billion, 10.3 billion, and 16.3 billion in the first three quarters of 2025 [3] Interest Margin and Asset Quality - The net interest margin for the first three quarters of 2025 is 2.57%, with a slight quarter-on-quarter decrease of 1 basis point but a narrowing year-on-year decline of 18 basis points. The third quarter saw a 7 basis point increase in net interest margin [4] - The bank's credit impairment losses increased by 4.7% year-on-year, with a decrease in credit cost contributing to net profit growth [2][4] Future Outlook - The bank is expected to maintain a robust growth trajectory, with projected net profit growth rates of 13.1%, 12.8%, and 12.3% for 2025 to 2027 [5][11] - The closing price on October 30 corresponds to a 2025 PB valuation of 0.71 times, indicating potential upside based on the bank's fundamentals [5]