Changjiang Securities·2026-03-31 11:14Investment Rating - The report maintains a "Buy" rating for the company [9][45] Core Insights - From a long-term perspective, the company remains the domestic bank with the highest customer quality, ROA, and endogenous growth capability. The stock price has adjusted since the second half of 2025, with the A-share dividend yield rising to 5.11%, and A-shares trading at a 10% discount to H-shares [2][45] - In the short term, retail market demand has not yet recovered, and the quality of retail assets remains volatile. The real estate sector is undergoing a process of clearing existing non-performing loans, which constrains valuation. The company's unique endogenous growth dividend value is expected to support the current valuation [2][45] Summary by Sections Performance Overview - The company's revenue growth for 2025 is +0.01%, marking the first positive growth since 2023, with a net profit growth of +1.2% [6][14] - The improvement in revenue growth is attributed to a narrowing decline in net interest margin and a recovery in fee income growth to 4.4%, the first positive growth since 2022 [6][14] Asset and Liability - Total assets grew by 7.6% year-on-year, reaching over 13 trillion yuan, with loans increasing by 5.4% [16] - Corporate loans saw a significant increase of 12.3%, the highest growth rate since 2013, while retail loans grew by only 2.1% [16] Profitability - The company's ROA for 2025 is 1.19%, the highest among listed banks, although ROE decreased by 1.05 percentage points to 13.44% [14][17] - Net interest income growth turned positive at 2.0% for 2025, with a net interest margin stabilizing at 1.87% [17][20] Asset Quality - The non-performing loan generation rate for 2025 is 1.03%, slightly down from the previous year, with total new non-performing loans amounting to 69.2 billion yuan [26][27] - The company maintains a high provision coverage ratio of 392%, despite a decrease from the previous year [27][44] Capital and Dividends - The core Tier 1 capital adequacy ratio is 14.16%, reflecting a decrease due to changes in asset and loan structures [44] - The dividend payout ratio for 2025 is 35.34%, consistent with previous years, indicating a stable dividend policy [44]