Investment Rating - The report maintains an "Overweight" rating for the banking sector [2] Core Insights - The impact of "reciprocal tariffs" on China's banking industry is profound, leading to additional pressure on loan demand and net interest margins, while asset quality remains stable. The investment value of bank stocks is highlighted, particularly for large banks, China Merchants Bank, and quality city commercial banks [7][12][14] Summary by Sections 1. Impact Mechanism of "Reciprocal Tariffs" on Bank Stocks - The economic impact includes weakened external demand, pressuring the credit demand and asset quality of banks [12][14] - Policy measures may boost retail credit demand through increased monetary easing [12][14] - Investment sentiment shifts towards banks due to enhanced dividend value amidst rising risk aversion [12][14] 2. Credit Demand: Pressure Points and Support - Economic growth pressure leads to declining credit growth, with a potential credit increment shortfall of CNY 2.139 billion in 2025 [15][19] - Export-related customer demand is expected to decline, while consumption-related customers may receive support from policy measures [27][28] 3. Net Interest Margin: Pressure Points and Support - A decline in credit growth could lead to a 14 basis points drop in net interest margins [33] - Monetary policy adjustments, including potential rate cuts, may exert additional pressure on margins [33][34] - The long-term outlook suggests that net interest margins are nearing their bottom, estimated at 1.24% [39][46] 4. Asset Quality: Pressure Points and Support - The impact on asset quality is manageable, with export-related sectors facing direct effects from tariffs [48] - The real estate sector's pressure is expected to ease, while retail sector non-performing loans may improve under supportive policies [48] 5. Investment Recommendations - The report emphasizes the dividend characteristics of bank stocks, recommending a focus on large banks and quality city commercial banks [7][12][14]

Investment Rating - The investment rating for Qingdao Bank is "Buy" and is maintained [9]. Core Views - The bank's revenue growth for 2024 is expected to be 8.2% year-on-year, with a net profit growth of 20.2%, indicating a leading profit growth rate in the industry [2][6]. - Interest income is projected to grow by 6.4% for the year, with a net interest margin of 1.73%, showing a slight year-on-year decline of 10 basis points but maintaining an advantageous position in the industry [2][6]. - Asset quality indicators are improving, with a non-performing loan ratio of 1.14% at year-end, down 3 basis points from the previous quarter, and a provision coverage ratio increasing by 15 percentage points to 241% [2][6]. Summary by Sections Performance - The bank's total revenue is expected to grow by 8.2% year-on-year, with a net profit growth of 20.2%, significantly exceeding expectations. The growth in interest income is attributed to stable net interest margins and rapid scale growth. Non-interest income is projected to grow by 13.6%, driven by a 32% increase in investment income [12][6]. Scale - Total loans increased by 13.5% year-on-year, with corporate loans growing by 20.1%. The bank continues to support key sectors such as manufacturing and inclusive finance, with respective growth rates of 46% and 33% [12][6]. Interest Margin - The net interest margin is 1.73%, with a slight decline of 10 basis points year-on-year. The bank has effectively managed its interest margin, with a significant improvement in deposit costs [12][6]. Asset Quality - The non-performing loan ratio decreased by 4 basis points year-on-year, with a net generation rate of 0.52%, indicating a continued improvement in asset quality. The provision coverage ratio has increased, enhancing the bank's risk mitigation capabilities [12][6]. Investment Recommendation - The bank is expected to lead the industry in profit growth, with a continued focus on quality and efficiency improvements. The current valuation is 0.59 times the 2025 price-to-book ratio, indicating undervaluation and a low holding advantage, thus maintaining a "Buy" recommendation [12][6].