Core Viewpoint - Su Nong Bank reported stable revenue and resilient profit growth in the first three quarters of 2025, with a slight increase in net profit and a decrease in return on equity [1][2]. Revenue and Profitability - The bank achieved operating income of 3.22 billion, a year-on-year increase of 0.1%, and a net profit attributable to shareholders of 1.71 billion, up 5% year-on-year [1]. - The annualized weighted average return on equity was 12.03%, down 0.88 percentage points year-on-year [1]. - Revenue growth rates for net interest income and non-interest income were -3.8% and 7.9%, respectively, with changes of -0.9 and +2.4 percentage points compared to the first half of the year [2]. Asset and Loan Growth - As of the end of Q3 2025, the growth rates for interest-earning assets and loans were 9.7% and 8.7%, respectively, showing improvements of 3.5 and 4.5 percentage points from the end of Q2 2025 [3]. - New loans in Q3 amounted to 1.6 billion, with significant increases in corporate loans, while retail and bill loans showed minor changes [3]. Deposit Growth and Structure - The growth rates for interest-bearing liabilities and deposits were 8.7% and 7.1%, respectively, with increases of 6.4 and 2.9 percentage points from mid-year [4]. - In Q3, deposits increased by 4 billion, with a notable rise in time deposits, indicating a continued trend towards more stable funding sources [4]. Net Interest Margin (NIM) and Cost Management - The bank's net interest margin faced pressure, with a decrease of 3 basis points compared to the first half of the year and 12 basis points year-on-year [5]. - The cost of interest-bearing liabilities decreased by 3 basis points, suggesting potential for further reduction in funding costs [5]. Non-Interest Income and Asset Quality - Non-interest income reached 1.16 billion, growing by 7.9% year-on-year, with a significant increase in fee and commission income [6]. - The bank maintained a low non-performing loan ratio of 0.9% and a high provision coverage ratio of 355.9%, indicating stable asset quality [6]. Capital Adequacy - As of the end of Q3 2025, the bank's core tier 1, tier 1, and total capital adequacy ratios were 10.76%, 10.76%, and 12.88%, respectively, with a slight decline from mid-year [7]. - The bank's capital adequacy provides a solid foundation for future growth and expansion [7]. Earnings Forecast and Valuation - The bank benefits from its local market position and is expected to continue growing, although challenges remain due to subdued financing demand and pressure on net interest margins [8]. - Adjusted earnings per share forecasts for 2025-2027 are 1.00, 1.05, and 1.11, with corresponding price-to-book and price-to-earnings ratios indicating potential for investment [8].

Investment Rating - The investment rating for the company is "Accumulate" (maintained) with a target price not specified [6]. Core Views - The company's profitability is gradually improving, with a reported revenue of approximately 491.20 billion yuan for the first three quarters of 2025, representing a year-on-year growth of 2.69% [2]. - The net profit attributable to the parent company for the same period is 177.66 billion yuan, showing a year-on-year increase of 1.08% [2]. - The net interest margin has stabilized at 1.26%, unchanged from the first half of 2025 [2]. - Non-interest income has shown significant growth, with a year-on-year increase of 16.20%, contributing to the overall revenue structure [2]. Financial Performance Summary - For the first three quarters of 2025, the company achieved a net interest income of 325.79 billion yuan, which accounts for 66.33% of total revenue, but decreased by 3.04% year-on-year [2]. - Non-interest income reached 165.41 billion yuan, with a year-on-year growth of 16.20% [2]. - The company’s total interest-earning assets amounted to 36.40 trillion yuan, reflecting a year-on-year growth of 10.38% [3]. - The non-performing loan ratio stood at 1.24%, remaining stable compared to the previous quarter [3]. Asset and Liability Structure - As of the third quarter of 2025, the company's interest-bearing liabilities totaled 32.73 trillion yuan, marking a year-on-year increase of 9.87% [3]. - The structure of interest-bearing liabilities includes deposits, bond issuance, interbank liabilities, and borrowings from the central bank, with respective year-on-year growth rates of 8.30%, 12.58%, -2.32%, and 86.67% [3]. - The loan-to-asset ratio has slightly decreased by 0.4 percentage points compared to mid-2025, indicating a shift in asset allocation [3]. Profitability Forecast and Valuation - The company is projected to see a net profit growth of 1.35%, 3.29%, and 4.10% for the years 2025, 2026, and 2027 respectively [4]. - The book value per share (BPS) is expected to be 8.11, 8.79, and 9.57 yuan for the years 2025, 2026, and 2027 respectively [4].

Financial Data and Key Metrics Changes - Tangible book value per share plus dividends increased by 17% year over year and 4.5% quarter over quarter [2] - Net attributable profit exceeded €2.5 billion, although it decreased compared to the previous quarter due to higher inflation in Turkey and one-off positive impacts in the second quarter [3] - CET1 capital ratio improved by 8 basis points to 13.42%, providing capacity for increased shareholder remuneration [4] - Cumulative profits for the first nine months reached almost €8 billion, a 4.7% increase year over year [4] Business Line Data and Key Metrics Changes - Core revenues showed strong growth with net interest income and fees increasing by 18% and 15% year over year, respectively [5] - Net interest income grew by 3.2% quarter on quarter in Spain, driven by strong loan growth in profitable segments [19] - In Mexico, net interest income grew by 3.3% quarter on quarter, supported by robust lending activity [21] - Turkey's net attributable profit increased by nearly 50% year over year, driven by higher core revenues [24] Market Data and Key Metrics Changes - Loan growth in Spain accelerated to 7.8% year over year, while Mexico's loan growth was 9.8% year over year [9] - The Mexican peso's appreciation negatively impacted FX hedges this quarter but is expected to benefit in the coming quarters [3] - The cost of risk in Mexico improved, with guidance now expecting it to remain below 340 basis points [24] Company Strategy and Development Direction - The company aims to focus on organic growth and has closed the chapter on the Sabadell transaction, emphasizing future operational focus [45] - A significant share buyback program of nearly €1 billion will commence, alongside a record interim dividend [16] - The company is committed to achieving a cost-to-income ratio of 35% by 2028, with a focus on maintaining operational leverage [68] Management Comments on Operating Environment and Future Outlook - Management expressed optimism about future revenue and profit growth, citing stability in customer spreads and strong loan growth [12] - The company expects interest rates to stabilize, with limited room for further cuts, which will support core revenue growth [11] - The competitive landscape in Mexico is acknowledged, with a focus on leveraging existing strengths to maintain market position [76] Other Important Information - The company acquired a record 8.7 million new customers in the first nine months of 2025, with 66% through digital channels [17] - A record €97 billion was channeled into sustainable business, reflecting the company's commitment to sustainability [17] Q&A Session Summary Question: Loan book growth in Spain and cost of risk in Mexico - Management noted that corporate loan growth in Spain is strong, driven by various sectors, while mortgage growth is limited due to pricing concerns [34][37] - The cost of risk in Mexico is expected to improve, with positive macro adjustments influencing guidance [38][39] Question: Insights on the Sabadell transaction and capital distribution outlook - Management considers the Sabadell transaction a missed opportunity but emphasizes a focus on future growth and shareholder value [45][46] - The company plans to distribute excess capital back to shareholders, targeting a capital level of 11.5% to 12% [46][50] Question: Margins in Spain and Mexico - Management indicated that customer spreads in Spain are stabilizing, with expectations of limited further declines [55][58] - In Mexico, margins are resilient despite falling interest rates, with expectations of stabilization in customer spreads [61][62] Question: Group costs and ambitions for Corporate & Investment Banking (CIB) - Management highlighted a focus on containing costs and achieving a cost-to-income ratio of 35% by 2028 [68] - The CIB business aims for 20% revenue growth, with aspirations to double the business over four years [70][72]

Investment Rating - The report maintains a "Recommendation" rating for Changshu Bank with a target price of 10.14 CNY [2] Core Views - Changshu Bank's revenue and profit growth remain robust, with a year-on-year revenue increase of 8.15% and a net profit growth of 12.82% for the first three quarters of 2025 [2] - The bank's asset quality shows marginal improvement, with a non-performing loan ratio stable at 0.76% and a provision coverage ratio of 463%, despite a quarter-on-quarter decline of 26.6 percentage points [2] - The bank's credit demand is recovering, with significant growth in both corporate and retail loans, indicating a positive trend in lending activities [2] Financial Performance Summary - For the first three quarters of 2025, Changshu Bank achieved an operating income of 90.52 billion CNY and a net profit attributable to shareholders of 33.57 billion CNY [2] - The average net interest margin for the first three quarters was 2.57%, with a slight decline of 1 basis point from the previous quarter, indicating stability in interest income [2] - Non-interest income has been a drag on revenue growth, with a 22.2% year-on-year decline in other non-interest income in the third quarter due to fluctuations in interest and exchange rates [2] Loan and Asset Quality Summary - As of September 2025, the bank's interest-earning assets grew by 10.4% year-on-year, driven by a 7.1% increase in loan volume [2] - The bank's non-performing loan generation rate improved, with a quarterly annualized rate of 1.0%, down 34 basis points from the previous quarter [2] - The bank's provision for credit losses decreased by 23.8% year-on-year, reflecting improved asset quality and reduced provisioning pressure [2] Future Outlook - The report forecasts net profit growth rates of 13.3%, 11.2%, and 10.4% for 2025, 2026, and 2027, respectively, indicating a stable growth trajectory [2] - The bank's dividend payout ratio has increased to 25.3%, with an expected dividend yield of 4.8% for 2025 [2] - The target price of 10.14 CNY corresponds to a price-to-book ratio of 0.95X for 2026, suggesting potential upside based on historical averages [2]

Investment Rating - The report maintains a "Strong Buy" rating for Ningbo Bank [4][9]. Core Views - Ningbo Bank's revenue and profit growth have shown slight improvement, with a year-on-year increase of 8.3% in revenue and 8.4% in net profit for the first three quarters of 2025 [1][2]. - The bank's asset quality remains stable, with a non-performing loan ratio of 0.76% as of September, unchanged from the previous quarter [4][3]. - The bank's net interest margin has stabilized, with a slight increase in the third quarter, reflecting improved liability costs and a slowdown in asset yield decline [3][4]. Summary by Sections Financial Performance - For the first three quarters of 2025, Ningbo Bank achieved a revenue of 54.98 billion and a net profit of 22.45 billion, marking a year-on-year growth of 8.3% and 8.4% respectively [1][2]. - The annualized weighted average ROE stands at 13.81%, a decrease of 0.7 percentage points year-on-year [1]. Revenue Breakdown - Net interest income grew by 11.8% year-on-year, an increase of 0.7 percentage points compared to the first half of 2025, primarily due to a narrowing decline in net interest margin [2]. - Non-interest income saw a significant increase of 29.3% year-on-year, benefiting from a low base and a recovery in capital markets [2]. - Other non-interest income decreased by 9% year-on-year, mainly due to adjustments in the bond market [2]. Loan and Asset Quality - As of September, total assets increased by 16.6% year-on-year, with loans and bond investments both growing by 17.9% [3]. - Corporate loans surged by 32.1% year-on-year, indicating strong credit organization and client management capabilities [3]. - The bank's non-performing loan generation rate has shown a steady decline, with a net generation rate of 0.99%, down 6 basis points from the previous quarter [4]. Future Outlook - The report forecasts continued growth in revenue and profit for the bank, with expected net profit growth rates of 8.6%, 9.5%, and 10.0% for 2025 to 2027 [9][10]. - The closing price on October 29 was 27.75 yuan per share, corresponding to a 0.79 times PB valuation for 2025 [9].

Core Viewpoint - Chengdu Bank reported a revenue of 17.76 billion yuan for the first nine months of 2025, reflecting a year-on-year growth of 3.0%, with a net profit attributable to shareholders of 9.49 billion yuan, up 5.0% year-on-year, although growth rates have slowed compared to the first half of 2025 [1][2] Group 1: Financial Performance - The bank's net interest income increased by 8.2% year-on-year to 14.72 billion yuan, with the growth rate improving by 0.6 percentage points compared to the first half of 2025 [1] - The bank's interest margin pressure has eased, contributing to the acceleration of net interest income growth, with the performance drag from interest margin at 5.6 percentage points, down from 6.4 percentage points in the first half of 2025 [1] - Non-interest income faced challenges, with net fee and commission income declining by 35.2% year-on-year to 380 million yuan, although the decline rate narrowed by 10.0 percentage points compared to the first half of 2025 [1] Group 2: Loan Growth and Asset Quality - The loan balance at the end of September 2025 reached 846.2 billion yuan, showing a year-on-year increase of 17.4%, consistent with the 18.0% growth rate at the end of the first half of 2025 [2] - Corporate loans and bill discounts saw a net increase of 10.4 billion yuan in the third quarter of 2025, driven by the construction of the Chengdu-Chongqing economic circle [2] - The non-performing loan ratio was 0.68% at the end of September 2025, slightly up by 2 basis points from the end of the first half of 2025, indicating stable asset quality [2] Group 3: Investment Outlook - The demand for infrastructure projects in the Chengdu-Chongqing region is strong, and Chengdu Bank is well-positioned to benefit from this, with expectations for continued high loan growth [2] - The bank's net profit attributable to shareholders is projected to reach 13.66 billion yuan, 14.72 billion yuan, and 16.05 billion yuan for 2025-2027, representing year-on-year growth rates of 6.2%, 7.8%, and 9.0% respectively [2]

Core Insights - Both Ningbo Bank and Nanjing Bank reported over 8% growth in revenue and net profit for the first three quarters of 2025, despite ongoing pressure in the banking sector [1] - Ningbo Bank outperformed Nanjing Bank in key metrics, including total assets, net interest margin, and asset quality [1][5] Financial Performance - Ningbo Bank achieved operating income of 54.976 billion yuan, a year-on-year increase of 8.32%, and a net profit of 22.445 billion yuan, up 8.39% [1] - Nanjing Bank reported operating income of 41.949 billion yuan, a growth of 8.79%, and a net profit of 18.005 billion yuan, an increase of 8.06% [1] - Nanjing Bank's net interest income surged by 40.53% year-on-year, driven by an expansion in interest-earning assets [2] - Ningbo Bank's net interest income grew by 13.21% year-on-year, indicating stable performance [2] Cost Management - Nanjing Bank's cost-to-income ratio improved to 23.27%, a decrease of 4.81 percentage points year-on-year [3] - Ningbo Bank maintained a cost-to-income ratio of 30.68%, stable compared to the previous quarter [3] Asset Quality - Both banks maintained low non-performing loan (NPL) ratios, with Nanjing Bank at 0.83% and Ningbo Bank at 0.76% [4] - Nanjing Bank's provision coverage ratio stood at 313.22%, while Ningbo Bank's was at 375.92%, indicating strong risk mitigation capabilities [4] Business Structure - Nanjing Bank's corporate loans accounted for 76% of total loans, while retail loans made up 24% [5] - Ningbo Bank's corporate loans represented 69% of total loans, with personal loans decreasing to 31% due to a strategic reduction in high-risk retail credit [6] Investment and Wealth Management - Both banks experienced a decline in investment income due to market volatility, but saw significant growth in wealth management and commission income [7][8] - Nanjing Bank's retail segment revenue grew by 22.10%, with a notable increase in commission income from wealth management products [7] - Ningbo Bank reported a 94.02% year-on-year increase in net fee income, reflecting strong performance in wealth management [8]

Core Viewpoint - Qingdao Bank reported a revenue of 11 billion and a net profit of 4 billion for the first three quarters of 2025, showing a year-on-year growth of 5% and 15.5% respectively, indicating stable profitability despite challenges in non-interest income growth [6][7]. Revenue and Profitability - The company's revenue, pre-provision profit, and net profit growth rates for the first three quarters of 2025 were 5%, 7.6%, and 15.5%, respectively, showing a decline compared to the first half of 2025 [7]. - Net interest income grew by 12%, while non-interest income saw a decline of 10.7%, with the negative growth rate for non-interest income widening [7]. - The growth in profitability was primarily driven by scale expansion, contributing 30.6 percentage points to the performance growth [7]. Asset and Loan Growth - As of the end of Q3 2025, the growth rates for interest-earning assets and loans were 15.9% and 13.3%, respectively, indicating steady credit growth and an increase in asset expansion intensity [8]. - Financial investments and interbank assets showed growth rates of 34% and a decline of 11.7%, respectively, with bond investment intensity further increasing [8]. Deposit and Liability Management - By the end of Q3 2025, the growth rates for interest-bearing liabilities and deposits were 15.3% and 12.5%, respectively, reflecting stable deposit growth [9]. - The growth rates for bonds payable and interbank liabilities were 23.7% and 20.2%, indicating an effective supplement to funding sources [9]. Interest Margin Trends - The net interest margin for the first three quarters was 1.68%, showing a narrowing of 4 basis points compared to the first half of the year and 5 basis points year-on-year, indicating relative stability in interest margin [10]. - The decline in interest margin is expected to stabilize in the short term due to lower costs of interest-bearing liabilities and the impact of previous deposit rate cuts [11]. Non-Interest Income Performance - Non-interest income for the first three quarters was 2.87 billion, reflecting a year-on-year decline of 10.7%, with its contribution to total revenue decreasing [12]. Asset Quality and Capital Adequacy - As of the end of Q3 2025, the non-performing loan ratio and attention ratio were 1.1% and 0.55%, respectively, indicating a decrease in non-performing loans [13]. - The capital adequacy ratios as of Q3 2025 were stable, with core Tier 1, Tier 1, and total capital adequacy ratios at 8.75%, 10.18%, and 13.14%, respectively [14].

Financial Data and Key Metrics Changes - The company reported a net income of $22.5 million, with a net interest margin (NIM) of 4.59%, return on equity (ROE) of 17.64%, and return on assets (ROA) of 2.13% [3][13] - Diluted earnings per share (EPS) stood at $2.67, with tangible book value just under $60 at $59.98 [3][4] - Total assets decreased slightly to $4.17 billion from $4.28 billion at the end of the previous quarter [13] Business Line Data and Key Metrics Changes - Loan purchases amounted to $145 million, while originations were $134 million, with the loan book remaining flat overall [13][14] - The company funded $42 million in SBA loans and sold $58 million, resulting in gains of $4.2 million, down from $8.2 million in the previous quarter [15][16] - The average loan balances decreased by $92 million compared to the previous quarter due to timing of transactions [7] Market Data and Key Metrics Changes - The company noted a robust purchase pipeline driven by M&A activity and repositioning of commercial real estate loans [4][10] - The SBA activity was impacted by a government shutdown, which halted new originations since October 1 [8][9] Company Strategy and Development Direction - The company is optimistic about its new insured small business loan product with NUITY, which has seen about $10 million closed since its launch [9] - The management emphasized a disciplined approach to credit while expecting strong growth in both purchased and originated loans [10][53] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the future loan growth despite challenges posed by the government shutdown affecting SBA loans [25][52] - The company anticipates a ramp-up in SBA activity once the government reopens, with continued strong demand expected [25][26] Other Important Information - The company is experiencing a change in its cost structure with NUITY, moving from a gain-sharing model to a flat fee per loan submitted [21][22] - The effective tax rate for the quarter was lower due to state law changes, with expectations for the rest of the year to be around 31% to 32% [55] Q&A Session Summary Question: Change in cost structure with NUITY - The cost structure changed to a flat fee per loan submitted instead of a split in the gain on sale [21] Question: Expectations for SBA loan gains in the fourth quarter - Management indicated uncertainty due to variables like the duration of the government shutdown but expressed optimism for a return to previous volume levels once reopened [25] Question: Increase in professional fees - The increase was attributed to temporary employees and heightened legal fees related to new products [26] Question: Quality of lender finance portfolio amid industry concerns - Management reassured that they have robust monitoring and verification processes in place to mitigate fraud risks [44] Question: Visibility on loan payoffs this quarter - There were larger payoffs than typical, with expectations that this could continue in a declining interest rate environment [51] Question: Lower tax rate explanation - The lower tax rate was due to state law changes and stock vesting impacts, with expectations for a higher effective tax rate moving forward [55]

Core Viewpoint - China Merchants Bank (招商银行) reported a steady improvement in operational performance for the first three quarters of 2023, with net profit slightly increasing year-on-year despite challenges in the banking sector [1][4]. Revenue Trends - For the first three quarters, the bank achieved operating income of 251.42 billion yuan, a year-on-year decrease of 0.51%, but the decline narrowed by approximately 1.2 percentage points compared to the first half of the year [2]. - Net interest income for the same period was 160.04 billion yuan, up 1.74% year-on-year, while non-interest income was 91.38 billion yuan, down 4.23%, indicating a slight recovery in fee and commission income [2]. Operational Advantages - The bank maintained a significant net interest margin of 1.87%, which, although down 12 basis points year-on-year, showed a smaller decline compared to the previous year [4]. - Retail loans reached 3.70 trillion yuan, growing 1.43% year-on-year, demonstrating resilience in a challenging economic environment [5]. Development Trends - As of the end of September, total assets reached 12.64 trillion yuan, a 4.05% increase from the end of the previous year, with total loans and advances at 7.14 trillion yuan, up 3.60% [6]. - Customer deposits totaled 9.52 trillion yuan, reflecting a 4.64% increase year-on-year [6]. Asset Quality - The bank's non-performing loan (NPL) ratio stood at 0.94%, a slight decrease from the previous year, with a provision coverage ratio of 405.93%, indicating strong asset quality management [7]. - The bank's management emphasized a focus on high-quality clients and collateral, with 90% of loans classified as "three high" (high quality, high area, high collateral) [7]. Income Structure - Non-interest income accounted for 36.34% of total revenue, with significant growth in wealth management services, including a year-on-year increase of 18.76% in fee and commission income [8].