Performance Summary - Jiangsu Bank reported a revenue growth of 6.2% year-on-year for Q1 2025, compared to an annual growth of 8.7% in 2024, while net profit increased by 8.2% year-on-year, against a 10.8% annual growth in 2024 [1] - The bank maintained a high growth in operating performance, with both revenue and profit growing over 5%. The credit growth remained robust, supported by liabilities that bolstered net interest margin resilience, leading to a 21.9% year-on-year increase in net interest income for Q1 2025 [1] - Net interest income also saw a quarter-on-quarter increase of 16.3%, with an annualized net interest margin rising by 13 basis points to 1.8% [1] Asset Quality - The bank's asset quality indicators showed improvement, with a non-performing loan (NPL) ratio of 0.86%, down 3 basis points quarter-on-quarter and 5 basis points year-on-year [3] - The non-performing loan generation rate decreased to 1.03%, down 34 basis points year-on-year and 38 basis points quarter-on-quarter, while the ratio of loans under special attention fell to 1.33% [3] - The overdue loan ratio also improved, decreasing by 1 basis point to 1.11% [3] Loan Growth - In Q1 2025, the bank experienced strong growth in both corporate and retail loans, with total interest-earning assets increasing by 20.6% year-on-year [2] - Corporate loans grew by 25.9% year-on-year, while retail loans saw a 10.0% increase [2] - The bank's interest-bearing liabilities rose by 22.0% year-on-year, with deposits increasing by 16.0% [2] Fee Income - Non-interest income showed a decline of 23.0% year-on-year, primarily due to other non-interest income dragging down overall performance [2] - However, net fee income increased by 21.8% year-on-year, indicating a strong performance in fee-generating activities [2] Investment Outlook - Jiangsu Bank's core competitive advantages include its small and micro business focus, strong corporate business in manufacturing and infrastructure, and retail business scale advantages [4] - The bank's projected price-to-book ratios for 2025, 2026, and 2027 are 0.75X, 0.68X, and 0.61X respectively, with price-to-earnings ratios of 5.55X, 5.21X, and 4.94X [4] - The bank's strong net interest margin trends, quality asset performance, and capital replenishment are expected to support sustained performance [4]

Core Viewpoint - The performance of Industrial Bank in the first quarter of 2025 remains stable, but the bank faces certain operational pressures [1] Group 1: Net Interest Margin - The net interest margin for the first quarter is reported at 1.80%, a decrease of 0.07 percentage points year-on-year [2] - The management anticipates a decline of 10 basis points in the net interest margin for the year, which is expected to outperform the industry average [2] - Key strategies to stabilize the net interest margin include promoting low-cost deposits and managing bond issuance effectively [2] Group 2: Credit Structure Adjustment - The bank's loan growth rate is slightly below the industry average, with a focus on adjusting the credit structure towards green finance and technology finance [3] - Green loans and technology loans increased by 9.37% and 9.90% respectively compared to the end of the previous year, both exceeding overall loan growth [3] - The bank aims to support traditional industry upgrades and emerging industries while stabilizing mortgage loans and exploring potential in consumer loans [3] Group 3: Risk Management in Retail Loans - The new non-performing assets in the first quarter are in line with expectations, showing no significant change in risk levels compared to the previous year [4] - The bank is enhancing risk control measures for retail loans, including upgrading risk assessment models and optimizing internal rating standards [4] - A collaborative collection system is being established to improve recovery rates on small, dispersed loans, thereby reducing the pressure from new non-performing assets [4]

Investment Rating - The report maintains a "Buy" rating for Chengdu Bank, indicating an expectation that the stock will outperform the market index by more than 15% in the next six months [10]. Core Insights - Chengdu Bank reported a revenue of 22.982 billion yuan in 2024, a year-on-year increase of 5.89%, and a net profit attributable to shareholders of 12.858 billion yuan, up 10.17% year-on-year [3][6]. - In Q1 2025, the bank achieved a revenue of 5.817 billion yuan, reflecting a growth of 3.17%, and a net profit of 3.012 billion yuan, which is a 5.64% increase year-on-year [3][6]. - The bank's asset quality remains strong, with a non-performing loan ratio of 0.66% and a provision coverage ratio of 456% as of Q1 2025 [6][8]. Summary by Sections Financial Performance - Chengdu Bank's total assets, loans, total liabilities, and deposits grew by 13.25%, 17.26%, 12.87%, and 15.60% respectively in Q1 2025, compared to 14.56%, 18.99%, 14.15%, and 13.51% in 2024 [6]. - The net interest margin for 2024 was 1.66%, down 15 basis points year-on-year, while the asset yield was 3.84%, down 18 basis points [6][8]. Investment Valuation - The expected earnings per share (EPS) for 2025 is projected at 3.23 yuan, with a price-to-earnings (PE) ratio of 5.34 times [9]. - The bank's projected book value per share (BVPS) for 2025 is 21.51 yuan, leading to a price-to-book (PB) ratio of 0.80 times at the current stock price [9]. Dividend and Returns - Chengdu Bank plans to distribute a dividend of 0.89 yuan per share for 2024, resulting in a dividend yield of 5.16% based on the closing price on April 29, 2025 [6][9].

Core Viewpoint - Zhejiang Merchants Bank reported a 1Q25 performance with a year-on-year decline in operating income of 7.1% and a slight increase in net profit attributable to shareholders of 0.6%, aligning with expectations [1] Financial Performance - In 1Q25, net interest income increased by 1.4% year-on-year, primarily due to effective control of deposit costs, which supported a rebound in net interest margin [2] - The net interest margin for 1Q25 was 1.60%, with a year-on-year decrease of 8 basis points and a quarter-on-quarter increase of 29 basis points [2] - Interest-earning asset yield decreased by 50 basis points year-on-year to 3.60%, while the cost of interest-bearing liabilities fell by 42 basis points to 1.93% [2] - The bank maintained a steady expansion of interest-earning assets, which grew by 8.9% year-on-year and 3.5% quarter-on-quarter, with total loans increasing by 6.9% year-on-year [2] Non-Interest Income - Other non-interest income saw a significant decline of 24.9% year-on-year in 1Q25, attributed to a high base in 1Q24 and rising bond rates [3] - Net fee income decreased by 13.2% year-on-year, contributing to an overall decline in non-interest income of 22.2% [3] Asset Quality - The non-performing loan ratio slightly increased by 6 basis points to 1.44% in 1Q25, while the net non-performing loan generation rate decreased by 20 basis points to 1.32% [3] - The provision coverage ratio fell by 7.46 percentage points to 171.21% [3] Profit Forecast and Valuation - The profit forecast remains unchanged, with the A-shares trading at 0.4x P/B for 2025E and 2026E, maintaining a target price of 3.55 yuan, indicating a 17.5% upside [4] - The H-shares are trading at 0.4x P/B for 2025E and 0.3x for 2026E, with a target price of 3.01 HKD, reflecting a 15.3% upside [4]

Investment Rating - The investment rating for the company is "Buy" for both A and H shares, maintaining the previous rating [9]. Core Views - The company reported a year-on-year decline in net profit and operating income of 4.0% and 3.2% respectively for Q1 2025, with annualized ROE and ROA decreasing by 1.00 percentage points and 0.09 percentage points to 9.06% and 0.68% respectively. Despite short-term pricing pressure, credit issuance remains stable, and asset quality is steady, reinforcing the company's leading position [2][3]. Summary by Sections Credit and Asset Quality - As of March 2025, total assets, loans, and deposits grew by 8.3%, 8.5%, and 4.0% respectively compared to the end of 2024. The company issued new loans totaling 1.31 trillion yuan, with corporate loans accounting for 85% and retail loans for 14% [3]. - The non-performing loan (NPL) ratio and provision coverage ratio stood at 1.33% and 216% respectively, showing stability compared to the end of 2024. The retail financial NPL ratio saw a slight increase, but the pace of growth has slowed [5]. Income and Expenses - Non-interest income decreased by 4.2% year-on-year in Q1 2025, primarily due to a slowdown in other non-interest income, which fell by 10.4% due to market fluctuations. Fee income accounted for 18.3% of total revenue, with the company focusing on growth in clearing, settlement, payment, and custody services [4]. - The cost-to-income ratio increased by 1.2 percentage points to 22.0%, maintaining a favorable level [4]. Profitability and Valuation - The company forecasts EPS for 2025, 2026, and 2027 to be 1.03, 1.06, and 1.10 yuan respectively, with a target price of 8.76 yuan for A shares and 6.71 HKD for H shares, reflecting a target PB of 0.80 and 0.57 respectively [6]. - The projected PB for 2025 is 0.66 for A shares and 0.46 for H shares, with the company expected to enjoy a valuation premium due to its leading position [6].

Investment Rating - The investment rating for the company is "Outperform the Market" [6] Core Views - The company reported a slight decline in performance with a revenue of 83.75 billion yuan, down 3.1% year-on-year, and a net profit of 37.29 billion yuan, down 2.1% year-on-year. The annualized ROAA and ROAE were 1.21% and 14.13%, respectively, both showing a decline compared to the previous year [1][2] - Net interest income showed positive growth at 1.9% year-on-year, while other non-interest income decreased significantly, impacting overall revenue [1] - The net interest margin was reported at 1.91%, with a year-on-year decline of 11 basis points. The total assets reached 12.53 trillion yuan, with loans and deposits growing by 3.4% and 2.5%, respectively [2] - The wealth management segment showed strong growth, with retail AUM reaching 15.57 trillion yuan, up 4.3% year-to-date, and wealth management fee income increasing by 10.5% year-on-year [3] - Asset quality remained stable, with a non-performing loan ratio of 0.94% and a provision coverage ratio of 410% [3][4] Financial Summary - The company forecasts net profits of 150.8 billion yuan, 158.1 billion yuan, and 169.1 billion yuan for 2025, 2026, and 2027, respectively, indicating growth rates of 1.6%, 4.9%, and 7.0% [4][5] - The projected earnings per share (EPS) for 2025 is 5.76 yuan, with a price-to-book (PB) ratio of 0.92x [5][11] - The company’s total assets are expected to grow from 11.03 trillion yuan in 2023 to 15.52 trillion yuan by 2027, reflecting a compound annual growth rate [11]

Investment Rating - The report maintains a strong recommendation for Agricultural Bank of China, indicating a robust performance relative to peers and a positive outlook for future growth [4]. Core Insights - Agricultural Bank of China reported a year-on-year revenue growth of 0.4%, a slight decline in PPOP of 0.3%, and a net profit increase of 2.2% for Q1 2025, showcasing resilience in a challenging environment [1]. - The bank's other non-interest income surged by 45.3% in Q1 2025, contrasting with the broader banking sector, which faced declines in this area due to market adjustments [2]. - The bank's total assets grew at a rate of 6.3% as of Q1 2025, the lowest among the six major state-owned banks, attributed to a significant reduction in interbank assets and a slowdown in financial investment growth [3]. Summary by Sections Performance Metrics - For Q1 2025, Agricultural Bank of China achieved a total revenue of 186.67 billion, with a net profit of 72.12 billion, reflecting a year-on-year growth of 2.2% [12]. - The bank's net interest margin decreased to 1.34%, while the return on equity (ROE) was reported at 10.82% [12][29]. Non-Interest Income - The bank's non-interest income growth was primarily driven by a significant increase in other non-interest income, which rose by 45.3% compared to the previous year [2][30]. - Fee income showed a decline of 3.5% in Q1 2025, indicating challenges in this revenue stream despite overall positive performance [4]. Asset Quality - Agricultural Bank of China maintained a non-performing loan (NPL) ratio of 1.28%, with a provision coverage ratio of 297.81%, indicating strong asset quality management [12][30]. Capital and Shareholder Information - The bank's total market capitalization is approximately 1956.4 billion, with a current share price of 5.59 yuan and a price-to-earnings (PE) ratio of 7.1 for 2025 [4][12].

Investment Rating - The report maintains an "Accumulate" rating for the company [5] Core Views - The company has shown improvement in liability volume and pricing, with a positive growth rate in fee income [2] - The net interest margin decline has narrowed, primarily due to improved liability costs [2] - The company is expected to leverage its wealth management and investment banking advantages in a more active capital market [3] Performance Summary - For Q1 2025, the company's operating revenue, PPOP, and net profit attributable to shareholders decreased by 3.58%, 4.35%, and 2.22% year-on-year, respectively [1] - The net interest margin for Q1 2025 was 1.80%, down 7 basis points year-on-year, but the decline has narrowed compared to previous quarters [2] - The company experienced a recovery in fee income growth, which turned positive at 9.38% after a significant decline in the previous year [2] Non-Interest Income - The company reported a 21.5% year-on-year decline in other non-interest income for Q1 2025, impacted by market interest rate adjustments and high base effects [3] - Fee income growth rebounded significantly from a decline of 9.88% in the previous year to a growth of 9.38% in Q1 2025 [30] Asset Quality - The non-performing loan (NPL) ratio stood at 1.08% in Q1 2025, slightly up from the previous quarter [2] - The provision coverage ratio was 233.42%, down 4.36 percentage points from the previous quarter, indicating stable asset quality [2] Financial Data and Valuation - The company is projected to achieve total operating revenue of 214.974 billion in 2025, with a year-on-year growth of 1.3% [4] - The estimated net profit attributable to shareholders for 2025 is 80.092 billion, reflecting a growth of 3.7% [4] - The current stock price is 21.02 yuan, with a target valuation based on the company's financial performance [5]

Investment Rating - The investment rating for the company is "Buy-A/Buy-H" with a current price of 7.27 CNY/5.48 HKD and a reasonable value of 7.29 CNY/5.50 HKD [2]. Core Views - The report highlights that the company has shown a year-on-year increase in both loans and deposits, with a narrowing decline in net fee income. The first quarter of 2025 saw a decrease in revenue, pre-provision operating profit (PPOP), and net profit attributable to shareholders by -3.2%, -3.6%, and -4.0% respectively compared to the previous year [6][8]. Summary by Sections Financial Performance - In Q1 2025, the company's revenue, PPOP, and net profit attributable to shareholders decreased by -3.2%, -3.6%, and -4.0% respectively, with changes from the previous year being -0.69 percentage points, +0.68 percentage points, and -4.50 percentage points [6][9]. - The total assets, loans, and deposits increased by 8.5%, 8.5%, and 4.0% year-on-year respectively, with a loan increment of 1.31 trillion CNY in Q1 2025, accounting for 57.3% of the total annual credit increment for 2024 [6][9]. Asset Quality - The non-performing loan (NPL) ratio at the end of Q1 2025 was 1.33%, a slight decrease from the end of the previous year. The provision coverage ratio improved to 215.70% [6][9]. Income Structure - The net interest margin (NIM) for Q1 2025 was 1.33%, down 9 basis points from the previous year, primarily due to the impact of LPR adjustments and market interest rates [6][9]. - The net fee income decreased by 1.18% year-on-year, but the decline was less severe compared to previous periods [6][9]. Profit Forecast and Investment Recommendation - The forecast for net profit growth for 2025 and 2026 is 0.84% and 2.08% respectively, with earnings per share (EPS) projected at 0.99 CNY and 1.01 CNY. The current stock price corresponds to a price-to-earnings (PE) ratio of 7.32X and 7.16X for 2025 and 2026 [6][9].

Investment Rating - The investment rating for the company is "Buy" [7] Core Views - The company's asset quality continues to improve, with a TTM real non-performing loan generation rate of 1.24%, a decrease of 16 basis points from the previous quarter, maintaining the improvement trend since Q3 2024 [1][5] - Revenue and net profit for Q1 2025 decreased by 3.6% and 2.2% year-on-year, respectively, primarily due to slowed growth in scale and increased non-interest burdens, although interest margin pressures improved [2][3] - The average daily interest margin for Q1 2025 was 1.80%, down 7 basis points year-on-year, but rebounded by 2 basis points compared to Q4 2024, benefiting from a significant decrease in the interest rate paid on deposits [3] - The bank's financial investment balance reached 3.55 trillion, demonstrating resilience amid challenges in the bond market, with minimal losses reported [4] - The bank's non-performing loan ratio increased slightly to 1.08% at the end of Q1 2025, while the attention loan ratio remained stable at 1.71% [5] Summary by Sections Performance Overview - For Q1 2025, the company reported a revenue of 55,683 million, a decrease of 3.6% year-on-year, and a net profit of 23,796 million, down 2.2% year-on-year [12] - The return on equity (ROE) for Q1 2025 was 9.0%, reflecting a decline from previous quarters [12] Profitability and Valuation - The forecasted net profit growth rates for 2025-2027 are -1.16%, 0.41%, and 2.25%, respectively, with corresponding book values per share (BPS) of 39.20, 41.64, and 44.16 [6] - The target price is set at 25.82 CNY per share, indicating a potential upside of 23% from the current price [6] Asset Quality - The non-performing loan ratio at the end of Q1 2025 was 1.08%, with a slight increase from the previous quarter, while the attention loan ratio remained stable at 1.71% [5] - The provision coverage ratio decreased to 233% [1][5]