Investment Rating - The report maintains a "Buy" rating for the company, Nanjing Bank, with an expected price-to-book (PB) ratio of 0.77 times for 2025 and a dividend yield of approximately 4.6% [11]. Core Insights - Nanjing Bank's revenue continues to show a "U-shaped" improvement, with a 8.8% year-on-year growth in revenue for the first nine months of 2025, and an 8.1% increase in net profit attributable to shareholders [5][11]. - The bank's non-performing loan (NPL) ratio decreased to 0.83% in the third quarter of 2025, reflecting stable asset quality and proactive write-offs [11]. - Major shareholders have actively increased their holdings, indicating confidence in the bank's long-term value, with nearly 12 billion yuan of shares bought back in the first three quarters [7][11]. Financial Performance Summary - **Revenue and Profitability**: - Total revenue for 9M25 reached 419 billion yuan, up 8.8% year-on-year, while net profit attributable to shareholders was 180 billion yuan, reflecting an 8.1% increase [5][11]. - Net interest income grew by 28.5% year-on-year, contributing significantly to revenue growth [7][11]. - **Cost and Efficiency**: - The cost-to-income ratio improved, contributing to profit growth, with a decrease in operating expenses [7][11]. - The bank's return on equity (ROE) for 2025 is projected at 12.13%, with a gradual decline expected in subsequent years [6][11]. - **Asset Quality**: - The provision coverage ratio improved to 313% in Q3 2025, indicating strong risk mitigation capabilities [11]. - The bank's total assets grew by 16.3% year-on-year, with loans increasing by 14.1% [11]. - **Future Outlook**: - The bank's net profit growth is forecasted at 8.1% for 2025, with slight adjustments to future growth expectations due to base effects [11].

Investment Rating - The report maintains a "Buy" rating for Qilu Bank [1][8][20] Core Views - Qilu Bank's revenue increased by 5.76% year-on-year in H1 2025, while net profit attributable to shareholders grew by 16.48%, indicating improved growth rates for both revenue and net profit [6][8] - The bank's total assets reached 7.513 trillion yuan by the end of June 2025, reflecting a year-on-year growth of 16.02% [6] - The non-performing loan (NPL) ratio for corporate loans decreased by 18 basis points to 0.77% compared to the end of 2024, showing significant improvement in asset quality [6][8] - The net interest margin (NIM) increased to 1.53%, up by 2 basis points from the end of 2024, indicating a recovery in profitability [6][8] Summary by Sections Recent Performance - Qilu Bank's stock performance over the past year shows a 25.8% increase, while the Shanghai and Shenzhen 300 Index rose by 37.2% [3] - As of August 29, 2025, the stock price is 5.57 yuan, with a market capitalization of approximately 34.28 billion yuan [3] Financial Highlights - In H1 2025, net interest income rose by 13.29% year-on-year, driven by a significant increase in credit issuance and a recovery in net interest margin [6] - The bank's loan balance increased by 13.77% and total deposits grew by 12.54% year-on-year [6] Future Projections - Revenue forecasts for 2025-2027 are 133.77 billion yuan, 146.11 billion yuan, and 162.54 billion yuan, with year-on-year growth rates of 7.05%, 9.23%, and 11.25% respectively [7][8] - Net profit projections for the same period are 58.76 billion yuan, 69.79 billion yuan, and 78.95 billion yuan, with growth rates of 17.83%, 18.78%, and 13.12% respectively [7][8]

Core Viewpoint - Qilu Bank's 2025 H1 financial results show significant growth in revenue, pre-provision operating profit (PPOP), and net profit attributable to shareholders, with year-on-year increases of 5.76%, 6.00%, and 16.48% respectively, indicating strong market expectations for double-digit growth [1] Group 1: Asset and Liability Growth - Total assets as of Q2 2025 increased by 16.02% year-on-year, with loans growing by 13.71%, and corporate loans showing a notable increase of 20.62% [2] - Total liabilities grew by 16.17% year-on-year, with deposits increasing by 12.54%, and bond issuance rising by 48.42% [2] Group 2: Net Interest Margin and Asset Quality - The net interest margin for H1 2025 was reported at 1.53%, a 2 basis point increase from 2024, outperforming the industry average [3] - The non-performing loan (NPL) ratio decreased to 1.09%, with a significant improvement in the provision coverage ratio to 343.24% [3] Group 3: Non-Interest Income and Future Outlook - Non-interest income from fees and commissions grew by 13.64% year-on-year, indicating better performance compared to peers [3] - Other non-interest income saw a decline of 24.25%, but the overall financial health remains strong, allowing for future asset allocation flexibility [4] - The company is well-positioned for growth due to favorable policies and a strong capital base, with recent convertible bond issuance further solidifying its financial standing [4]