QILU BANK(SH:601665) CMS·2025-11-02 11:43Investment Rating - The report maintains a strong recommendation for Qilu Bank, indicating a positive outlook for the company's performance [6]. Core Insights - Qilu Bank's total assets grew by 16.55% year-on-year as of Q3 2025, with loans increasing by 15.20%. Corporate loans showed strong growth, accelerating to 23.09% [2][3]. - The net interest margin (NIM) for Q3 2025 was estimated at 1.53%, reflecting a 4 basis points increase from the previous quarter, driven by improved funding costs [3]. - Non-interest income saw a significant decline, with a year-on-year decrease of 24.66% in the first three quarters of 2025, primarily due to a drop in net fee income [4][35]. Summary by Sections Performance Metrics - For the first three quarters of 2025, Qilu Bank reported a revenue growth of 4.63%, a pre-provision operating profit (PPOP) growth of 4.01%, and a net profit growth of 15.14% [1][19]. - The bank's cumulative performance metrics indicate a robust growth trajectory compared to industry peers [5]. Non-Interest Income - Non-interest income decreased by 24.66% year-on-year, with net fee income turning negative at -1.41% and other non-interest income declining by 38.13% [4][35]. Interest Margin and Asset Quality - The bank's NIM showed resilience, with a quarter-on-quarter improvement attributed to a reduction in funding costs [3]. - As of Q3 2025, the non-performing loan (NPL) ratio remained stable at 1.09%, with a provision coverage ratio of 351.43%, indicating a solid buffer against potential loan losses [3]. Capital and Shareholder Information - Qilu Bank's total market capitalization is approximately 37.2 billion yuan, with a current share price of 6.05 yuan and a return on equity (ROE) of 10.5% [6].