Core Viewpoint - China Bank reported a slight year-on-year increase in revenue for Q1 2025, driven primarily by non-interest income, despite a decline in net interest income and net profit [1][2][3]. Revenue and Profitability - In Q1 2025, China Bank achieved revenue of 164.9 billion yuan, a year-on-year increase of 2.56% [1][2]. - Net interest income was 107.7 billion yuan, down 4.42% year-on-year, accounting for 65.32% of total revenue [2]. - Non-interest income reached 57.2 billion yuan, showing a significant year-on-year growth of 18.91%, becoming the main driver for revenue improvement [2][3]. - The bank's net profit attributable to shareholders was 54.4 billion yuan, reflecting a year-on-year decrease of 2.90% [1][2]. Asset and Liability Management - As of Q1 2025, the total interest-earning assets amounted to 34.92 trillion yuan, representing a year-on-year growth of 7.2% [3]. - The loan and financial investment segments were key growth drivers, with year-on-year increases of 8.3% and 20.0%, respectively [3]. - The total interest-bearing liabilities stood at 31.59 trillion yuan, up 6.8% year-on-year, with deposits growing by 6.2% [4]. Asset Quality - The non-performing loan (NPL) ratio remained stable at 1.25%, unchanged from 2024 [5]. - The provision coverage ratio was 198%, a decrease of 2.63 percentage points compared to the end of 2024 [6]. Shareholder Structure - Changes in the top ten shareholders included a slight increase in the stake of the second-largest shareholder, Hong Kong Central Clearing Limited, and minor decreases for others [6]. Profit Forecast and Valuation - The bank is expected to see marginal improvements in revenue and profit for 2024, with projected year-on-year growth in net profit attributable to shareholders of 0.03%, 2.37%, and 3.41% for 2025-2027 [7].

Investment Rating - The investment rating for the company is "Accumulate" with a 6-month outlook [7] Core Views - The company's revenue improved due to non-interest income, with Q1 2025 revenue reaching 164.9 billion yuan, a year-on-year increase of 2.56%. Net interest income was 107.7 billion yuan, down 4.42% year-on-year, while non-interest income grew by 18.91% to 57.2 billion yuan, becoming the main driver of revenue growth [2][3] - The bank's asset quality remains stable, with a non-performing loan ratio of 1.25% and a provision coverage ratio of 198% [3] - The bank's net interest margin recorded 1.29%, down 11 basis points quarter-on-quarter and 15 basis points year-on-year, primarily due to adjustments in the Loan Prime Rate (LPR) [3] Financial Performance Summary - In Q1 2025, the bank's total interest-earning assets amounted to 34.92 trillion yuan, a year-on-year increase of 7.2%. Loan and financial investment growth was 8.3% and 20.0%, respectively [3] - The bank's interest-bearing liabilities reached 31.59 trillion yuan, up 6.8% year-on-year, with deposits growing by 6.2% [3] - The bank's forecasted net profit for 2025 is expected to be 245.8 billion yuan, with a slight growth of 0.03% year-on-year, and projected growth rates for 2026 and 2027 are 2.37% and 3.41%, respectively [5][12]

Investment Rating - The report maintains an "Accumulate" rating for the company [1] Core Insights - The company reported a revenue of 164.9 billion, a year-on-year increase of 2.6%, while the net profit attributable to shareholders was 54.4 billion, a decrease of 2.9% [4] - The weighted average return on equity (ROE) was 9.09%, down 0.77 percentage points year-on-year [4] - Non-interest income accounted for 34.7% of total revenue, an increase of 5.9 percentage points compared to the previous year [5] Revenue Performance - In Q1 2025, the revenue growth rate improved by 1.4 percentage points compared to the previous year, with non-interest income contributing positively [5] - The year-on-year growth rates for net interest income and non-interest income were -4.4% and 18.9%, respectively [5] - The main contributors to revenue growth were scale expansion and non-interest income, contributing 13.8 and 14.6 percentage points to performance growth [5] Asset and Loan Growth - As of the end of Q1 2025, interest-earning assets and loans grew by 7.3% and 8.3% year-on-year, respectively [6] - The loan-to-interest-earning asset ratio increased by 1.1 percentage points to 65% [6] - The company focused on key areas for credit support, with significant growth in loans for technology finance, small and micro enterprises, and green credit [6] Liability and Deposit Growth - Interest-bearing liabilities and deposits grew by 6.9% and 6.1% year-on-year, respectively [7] - The proportion of deposits in interest-bearing liabilities increased by 1.9 percentage points to 79.9% [7] Net Interest Margin - The net interest margin for Q1 2025 was 1.29%, down 11 basis points from 2024, but the decline was less than the previous year [8] - The yield on interest-earning assets decreased to 2.96%, primarily due to LPR adjustments and the rolling repricing of existing loans [8] Non-Interest Income - Non-interest income grew by 18.9% year-on-year, with net fee and commission income increasing by 2.1% to 25.65 billion [9] - The significant growth in foreign exchange net income and other business income contributed to the overall increase in non-interest income [9] Asset Quality - The non-performing loan (NPL) ratio remained stable at 1.25% as of the end of Q1 2025 [10] - The provision coverage ratio was 198%, indicating a reasonable and sufficient risk buffer [10] Capital Adequacy - The capital adequacy ratio decreased to 17.98% as of the end of Q1 2025, with core tier 1 capital ratio at 11.82% [10] - The company is expected to enhance its capital base following a planned 165 billion capital increase [10] Earnings Forecast and Valuation - The earnings per share (EPS) forecast for 2025-2027 has been adjusted to 0.76, 0.79, and 0.81 yuan, respectively [11] - The current stock price corresponds to a price-to-book (PB) ratio of 0.68, 0.63, and 0.59 for the respective years [11]

Investment Rating - The investment rating for Postal Savings Bank is "Buy" with a target price not specified [6] Core Views - The bank's non-interest income has shown significant improvement, contributing to revenue growth despite a slight decline in net interest income [1][2] - The bank's asset quality remains stable with a non-performing loan ratio of 0.91% and a provision coverage ratio of 266% [2][3] - The bank's core tier one capital adequacy ratio is at 9.21%, reflecting a decrease due to increased loan disbursements [3] Financial Performance Summary - In Q1 2025, Postal Savings Bank reported revenue of 89.4 billion yuan, a year-on-year decrease of 0.07%, with net profit at 25.4 billion yuan, down 2.62% year-on-year [1] - Non-interest income reached 20.5 billion yuan, a year-on-year increase of 14.83%, driven mainly by a 104.58% increase in investment net income [1] - The bank's net interest margin recorded at 1.70%, down 15 basis points quarter-on-quarter and 20 basis points year-on-year [2] Asset and Liability Management - Total interest-earning assets amounted to 17.45 trillion yuan, growing 8.1% year-on-year, with loans and financial investments increasing by 10.1% and 9.5% respectively [2] - The bank's interest-bearing liabilities reached 16.70 trillion yuan, up 8.6% year-on-year, with deposits growing by 9.2% [2] Profitability Forecast - The bank's projected net profit growth for 2025-2027 is estimated at 1.23%, 3.98%, and 4.42% respectively, with corresponding book value per share (BPS) of 8.82, 9.25, and 9.64 yuan [4][11]

Core Viewpoint - The banking sector experienced a sudden decline in stock prices after reaching new highs, attributed to disappointing Q1 earnings reports from major banks [1][2]. Group 1: Stock Performance - After a period of growth, bank stocks fell sharply on April 30, 2025, with major banks like China Construction Bank and Industrial and Commercial Bank of China seeing declines of over 3% [1]. - By the end of the trading day, Industrial and Commercial Bank of China dropped 3.58% to 7.01 CNY per share, while China Construction Bank fell 3.21% to 9.06 CNY per share [1]. Group 2: Q1 Earnings Reports - Q1 earnings reports from several banks were below expectations, contributing to the decline in stock prices [2]. - Agricultural Bank of China was the only major bank to report growth in both revenue and net profit, with revenue of 186.67 billion CNY (up 0.35%) and net profit of 71.93 billion CNY (up 2.20%) [2]. - Other major banks, including Industrial and Commercial Bank of China, China Construction Bank, and Postal Savings Bank, reported declines in both revenue and net profit [2]. Group 3: Revenue and Profit Trends - Industrial and Commercial Bank of China reported Q1 revenue of 212.77 billion CNY, down 3.22%, and net profit of 84.16 billion CNY, down 3.99% [2]. - China Bank achieved revenue of 164.93 billion CNY (up 2.56%) but saw net profit decline by 2.90% to 54.36 billion CNY [3]. - Traffic Bank's revenue decreased by 1.02% to 66.37 billion CNY, while net profit increased by 1.54% to 25.37 billion CNY [3]. Group 4: Interest and Non-Interest Income - Interest income was a significant drag on performance, with most banks reporting declines in net interest income compared to the previous year [3][4]. - Agricultural Bank of China reported a net interest income of 140.58 billion CNY, down 2.74% [4]. - China Bank's net interest income fell by 4.42% to 107.73 billion CNY, while its non-interest income increased by 18.91% to 57.20 billion CNY [4]. Group 5: Agricultural Bank's Performance - Agricultural Bank of China's positive performance was attributed to strong growth in non-interest income, which increased by 45.3% in Q1 2025 [6]. - The bank's fee and commission income decreased by 3.54% to 28.01 billion CNY [5].

Investment Rating - The report maintains a buy rating for the company’s A/H shares [5][8]. Core Views - The company reported a year-on-year decline in net profit and operating income for Q1 2025, with net profit down by 2.6% and operating income down by 0.1% [1]. - The company is experiencing pressure on its net interest margin, which decreased to 1.71%, while non-interest income showed strong growth of 14.8% year-on-year [2][3]. - The company is focusing on cost optimization, which is reflected in the reduction of its cost-to-income ratio to 56.7% [3]. Summary by Sections Financial Performance - For Q1 2025, the company’s annualized ROE and ROA were 11.33% and 0.58%, respectively, both showing a decline compared to the previous year [1]. - The company’s total assets, loans, and deposits grew by 8.3%, 9.8%, and 9.2% year-on-year, respectively [2]. Credit and Asset Quality - The non-performing loan (NPL) ratio was reported at 0.91%, with a provision coverage ratio of 266% [4]. - The company’s NPL generation rate increased to 0.88%, indicating a rise in asset quality concerns [4]. Capital and Valuation - The report estimates the company’s EPS for 2025 at 0.88 RMB, with a projected PB ratio of 0.70 for A shares and 0.64 for H shares [5]. - The target prices are set at 6.29 RMB for A shares and 6.17 HKD for H shares [8][9].

Investment Rating - The report maintains a "Buy" rating for China Merchants Bank [1] Core Views - The report highlights that non-interest income pressure has negatively impacted revenue, while interest income continues to show positive growth. The bank's provisioning advantage remains solid, helping to mitigate profit declines [6][8] - In Q1 2025, China Merchants Bank reported revenue of 83.8 billion yuan, a year-on-year decline of 3.1%, and a net profit attributable to shareholders of 37.3 billion yuan, down 2.1% year-on-year [4][6] - The report emphasizes the bank's ability to manage credit risk effectively, with a non-performing loan (NPL) ratio of 0.94% and a provisioning coverage ratio of 410% [4][9] Financial Data and Earnings Forecast - Total revenue forecast for 2025 is 338.02 billion yuan, with a year-on-year growth rate of 0.16% [5] - Net profit attributable to shareholders is projected to be 149.69 billion yuan in 2025, reflecting a year-on-year growth rate of 0.88% [5] - The report anticipates a gradual recovery in performance, with net profit growth rates of 0.9%, 3%, and 5.4% for 2025-2027 [9] Revenue Composition - Non-interest income decreased by 10.6% in Q1 2025, significantly impacting overall revenue growth [6][8] - Interest income showed a positive growth of 1.9% in Q1 2025, contributing positively to revenue despite the decline in non-interest income [6][8] Loan Growth and Credit Quality - Total loans increased by 5.2% year-on-year in Q1 2025, with corporate loans remaining stable while retail loan growth slowed [6][10] - The report notes a shift in retail lending focus towards lower-risk products, with a significant reduction in credit card lending [6][10] Cost of Deposits and Interest Margin - The bank's net interest margin was reported at 1.91% in Q1 2025, with a slight quarter-on-quarter decline of 3 basis points [9][11] - Deposit costs decreased significantly, supporting the bank's interest margin stability [9][11]

Investment Rating - The report maintains a "Buy" rating for both A-shares and H-shares of Postal Savings Bank, with current prices at 5.35 CNY and 4.85 HKD respectively [1][10]. Core Insights - Postal Savings Bank's Q1 2025 report shows stable revenue at 893.6 billion CNY, with a slight year-over-year decline of 0.1%. The net profit attributable to shareholders is 252.5 billion CNY, down 2.6% year-over-year [2][3]. - The bank's non-interest income has increased its contribution to total revenue, rising to 22.9%, up 4.9 percentage points from the previous year [3][4]. - The bank's loan and interest income growth rates are 9.8% and -3.8% respectively, indicating a shift towards non-interest income sources [3][4]. Financial Performance - For Q1 2025, the bank's net interest margin decreased to 1.71%, down 16 basis points from 2024, primarily due to lower asset yields [6][10]. - Non-interest income grew by 14.8% year-over-year, reaching 205.1 billion CNY, with significant contributions from fees and commissions [7][10]. - The bank's non-performing loan ratio remains low at 0.91%, with a slight increase from the previous year [8][10]. Asset and Liability Management - As of Q1 2025, the bank's interest-earning assets and loans grew by 8% and 9.8% year-over-year, respectively, with loans making up 56.5% of interest-earning assets [4][5]. - The bank's deposit growth was robust, with total deposits increasing by 9.2% year-over-year, reflecting strong core funding capabilities [5][10]. Capital Adequacy - The risk-weighted assets (RWA) increased by 6.9% year-over-year, with a decline in capital adequacy ratios, indicating higher capital consumption due to increased lending [9][10]. - The bank's core tier 1 capital ratio stood at 9.21%, down from the previous year, but is expected to improve following a planned capital increase of 130 billion CNY [9][10]. Earnings Forecast and Valuation - The report projects a slight decline in earnings per share (EPS) for 2025-2027, adjusting the forecast to 0.74, 0.75, and 0.78 CNY respectively [10][11]. - The current price-to-book (P/B) ratios for A-shares and H-shares are estimated at 0.7 and 0.55 respectively for 2025 [10][11].

Investment Rating - The report maintains a "Buy" rating for Suzhou Bank [1] Core Views - Suzhou Bank achieved a revenue of 12.2 billion in 2024, a year-on-year increase of 3%, and a net profit attributable to shareholders of 5.1 billion, up 10.2% year-on-year [3] - The bank's credit maintains double-digit growth, with loans increasing by 12.7% year-on-year as of Q1 2025, and a steady expansion of its asset scale [5] - The bank's non-interest income growth has slowed but remains stable at around 35% of total revenue [9] - The bank's asset quality remains strong, with a non-performing loan ratio of 0.83% at the end of 2024 [10] Summary by Sections Financial Performance - In 2024, Suzhou Bank's operating income was 12.2 billion, with a net profit of 5.1 billion, reflecting a 3% and 10.2% increase year-on-year respectively [3] - For Q1 2025, the bank reported operating income of 3.25 billion, a 0.8% increase year-on-year, and a net profit of 1.55 billion, up 6.8% year-on-year [3] Revenue and Profitability - The bank's net interest income decreased by 6.8% in 2024, while non-interest income grew by 27.6% [4] - The bank's cost-to-income ratio was 36.4% in 2024, with credit impairment losses at 9.2% of revenue [4] Asset Quality - The non-performing loan ratio was 0.83% at the end of 2024, with a coverage ratio of 447% [10][11] - The bank's credit risk management remains robust, with a significant reduction in new non-performing loans [10] Capital Adequacy - As of Q1 2025, the bank's core tier 1 capital ratio was 9.8%, indicating a solid capital base for future growth [11] - The bank's capital adequacy ratios are well above regulatory requirements, providing a strong buffer for potential risks [11] Future Outlook - The bank is expected to continue its expansion in both corporate and retail lending, with a focus on manufacturing and small micro-enterprises [5] - The report anticipates stable growth in non-interest income and improvements in asset quality, supporting sustainable development [12][13]

Investment Rating - The investment rating for Ningbo Bank is "Buy-A" with a 6-month target price of 28.09 CNY, compared to the current stock price of 24.96 CNY [4]. Core Views - The report highlights that Ningbo Bank's performance in Q1 2025 was primarily driven by scale expansion, cost reduction, and tax benefits, despite a slight slowdown in various performance metrics compared to 2024 [1][10]. - The bank's non-performing loan generation rate has begun to decline, indicating improved asset quality, while the bank has increased its provisioning efforts [9][10]. Summary by Sections Financial Performance - In Q1 2025, Ningbo Bank's revenue grew by 5.63% year-on-year, with pre-provision profit increasing by 10% and net profit attributable to shareholders rising by 5.76% [1]. - The average daily balance of interest-earning assets increased by 17.79% year-on-year, with new asset scale reaching 270.8 billion CNY, a year-on-year increase of 94.3 billion CNY [1][17]. - New loans amounted to 162 billion CNY, up 53 billion CNY year-on-year, primarily driven by corporate loans and bill discounting [1][18]. Capital and Asset Quality - As of the end of Q1 2025, the core Tier 1 capital adequacy ratio was 9.32%, down 0.52 percentage points from the end of the previous year, indicating challenges in balancing capital consumption with asset expansion [2]. - The bank's non-performing loan balance increased by 20.61% year-on-year, while the total loan amount grew by 20.41% [10]. - The non-performing loan generation rate (annualized) was 1.08%, down 12 basis points year-on-year, reflecting a slowdown in the generation of new non-performing loans [9][10]. Income and Cost Management - The net interest margin decreased by 7 basis points quarter-on-quarter to 1.8%, with a year-on-year decline of 10 basis points, slightly impacting net interest income growth [2][3]. - Non-interest income fell by 5.78% year-on-year, with net fee and commission income down by 1.32% [3][9]. - The cost-to-income ratio improved to 29.07%, a decrease of 2.46 percentage points year-on-year, indicating effective cost control measures [9]. Future Outlook - For the full year of 2025, revenue growth is expected to be 6.50%, with net profit growth projected at 5.48% [10][12].