INDUSTRIAL BANK(SH:601166) Ping An Securities·2025-11-03 10:40Investment Rating - The investment rating for the company is "Strong Buy" (maintained) [1][9][14] Core Views - The company has shown steady profit growth with a slight increase in net profit of 0.1% year-on-year for the first three quarters of 2025, despite a 1.8% decline in operating income [4][7] - The bank's asset quality remains stable, with a non-performing loan (NPL) ratio holding steady at 1.08% as of the end of the third quarter [7][9] - The report highlights a robust growth in deposits, which increased by 7.6% year-on-year, supporting the bank's overall stability [4][7] Summary by Sections Financial Performance - For the first three quarters of 2025, the company achieved operating income of 161.2 billion yuan, a year-on-year decrease of 1.8%, and a net profit attributable to shareholders of 63.1 billion yuan, a slight increase of 0.1% [4][7] - The bank's net interest income saw a year-on-year decline of 0.6%, while non-interest income decreased by 4.5% [7][9] Asset Quality - The NPL ratio remained stable at 1.08%, with the coverage ratio at 228% and the loan-to-deposit ratio at 102.21% [7][11] - The bank's total assets grew by 3.5% year-on-year, with loans increasing by 4.3% and deposits by 7.6% [4][7] Future Projections - The report projects a modest growth in net profit for 2025-2027, with expected growth rates of 1.3%, 4.5%, and 5.3% respectively [9][12] - The price-to-book (P/B) ratios for 2025-2027 are estimated at 0.53x, 0.49x, and 0.46x, indicating a favorable valuation [9][12]