PAB(SZ:000001) Guoxin Securities·2026-03-22 08:23Investment Rating - The investment rating for Ping An Bank is maintained at "Neutral" [6] Core Views - The report indicates that both revenue and profit have declined, with 2025 revenue at 131.4 billion yuan, a year-on-year decrease of 10.4%, and net profit attributable to shareholders at 42.6 billion yuan, down 4.2% year-on-year [1][2] - The asset quality pressure has eased, with a non-performing loan ratio of 1.05% at the end of 2025, a slight decrease from the beginning of the year [3] - The average return on equity (ROE) for 2025 is reported at 9.2%, down 0.9 percentage points year-on-year [1][3] Financial Performance Summary - Total assets at the end of 2025 grew by 2.7% year-on-year to 5.93 trillion yuan, with deposits increasing by 1.4% to 3.58 trillion yuan and loans rising by 0.5% to 3.39 trillion yuan [1] - The average net interest margin for 2025 was 1.78%, a decrease of 9 basis points year-on-year, primarily due to falling market interest rates [2] - Non-interest income decreased, with net fee income down by 0.9% and other non-interest income down by 33% due to market fluctuations [2] Asset Quality Indicators - The non-performing loan generation rate for 2025 is estimated at 2.19%, a decrease of 0.18 percentage points year-on-year, indicating a continuous decline for two years [3] - The provision coverage ratio at the end of 2025 was 221%, down 30 percentage points from the beginning of the year [3] Earnings Forecast - The report slightly adjusts the earnings forecast, projecting net profits of 42.9 billion yuan for 2026 and 43.1 billion yuan for 2027, with a diluted EPS of 2.08 yuan for 2026 and 2.09 yuan for 2027 [3][7] - The current price-to-earnings (PE) ratio is 5.2 for 2026 and 5.1 for 2027, while the price-to-book (PB) ratio is 0.44 for 2026 and 0.41 for 2027 [3][7]