BOB(SH:601169) Yin He Zheng Quan·2025-11-03 06:11Investment Rating - The report maintains a "Recommended" rating for Beijing Bank [1] Core Views - Beijing Bank's performance shows a short-term decline in revenue growth, with a year-on-year decrease of 1.08% for Q1-Q3 2025, while net profit attributable to shareholders increased by 0.26% [5] - The bank's interest income grew by 1.79% year-on-year, driven by scale expansion, although the annualized net interest margin decreased by 2 basis points to 1.26% [5] - The bank's total loans increased by 7.38% year-to-date, with corporate loans growing by 11.98%, particularly in technology finance and green finance [5] - Non-interest income decreased by 9.22% year-on-year, primarily due to fluctuations in investment income, while fee income from wealth management grew by over 10% [5] - The asset quality remains stable, with a non-performing loan ratio of 1.29% and a provision coverage ratio of 195.79% [5] - The bank's digital transformation strategy is expected to enhance its retail financial services and maintain strong deposit acquisition capabilities [5] Summary by Sections Financial Performance - Revenue for Q1-Q3 2025 decreased by 1.08% year-on-year, while net profit increased by 0.26% [5] - The annualized return on equity (ROE) was 9.86%, down by 0.79 percentage points [5] - Q3 revenue and net profit saw declines of 5.71% and 1.85% year-on-year, respectively [5] Loan and Deposit Growth - Total loans increased by 7.38% year-to-date, with corporate loans up by 11.98% [5] - Retail loans grew by 1.99%, with a focus on high-quality residential mortgage projects [5] - Deposits increased by 7.60% year-to-date, with personal deposits showing strong growth of 12.53% [5] Non-Interest Income and Wealth Management - Non-interest income fell by 9.22% year-on-year, while fee income from wealth management grew by 16.91% [5] - The bank's assets under management (AUM) increased by 9.44% year-to-date, with significant contributions from high-net-worth clients [5] Asset Quality and Capital Adequacy - The non-performing loan ratio stood at 1.29%, with a provision coverage ratio of 195.79% [5] - The core Tier 1 capital adequacy ratio was 8.44%, reflecting a slight decrease [5] Investment Outlook - The bank's focus on digital transformation and retail banking is expected to drive future growth [5] - The projected book value per share (BVPS) for 2025 is 13.30 yuan, with corresponding price-to-book (PB) ratios of 0.42X [5]