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]

Investment Rating - The report assigns a "Buy" rating for Jiangyin Bank (002807) [2][5] Core Views - Jiangyin Bank's H1 2025 revenue increased by 10.45% year-on-year, and net profit attributable to shareholders rose by 16.63%. Non-interest income grew by over 30%, primarily driven by an 81.44% increase in investment income to 0.881 billion yuan [5] - The net interest margin (NIM) has rebounded, with a decrease in the deposit interest rate, which fell by 23 basis points to 1.62% compared to the end of 2024. The NIM for H1 2025 was 1.54%, up 3 basis points from Q1 2025 [5] - The non-performing loan (NPL) ratio remained stable at 0.86%, with overdue loans as a percentage of total loans decreasing by 29 basis points from the end of 2024. The provision coverage ratio increased to 381.22%, up 31.22 percentage points from Q1 2025 [5] Summary by Sections Financial Performance - Jiangyin Bank's H1 2025 revenue was 4.962 billion yuan, with a year-on-year growth rate of 10.45%. The net profit attributable to shareholders was 2.203 billion yuan, reflecting a 16.63% increase. In Q2 2025, revenue grew by 14.67% year-on-year, an increase of 8.65 percentage points from Q1 2025 [5][7] - Non-interest income for H1 2025 reached 1.026 billion yuan, with a year-on-year growth of 30.26%, mainly due to significant investment income [5] Profitability Metrics - The NIM for H1 2025 was reported at 1.54%, showing a slight increase from the previous quarter. The net interest spread was 1.37%, also up by 3 basis points [5] - The bank's deposit interest rate decreased significantly, contributing to improved profitability [5] Asset Quality - The NPL ratio was stable at 0.86%, with a provision coverage ratio of 381.22%, indicating strong asset quality management [5] - The overdue loan ratio decreased to 1.06%, down 29 basis points from the end of 2024 [5] Future Projections - Revenue projections for Jiangyin Bank are estimated at 4.4 billion yuan for 2025, 4.8 billion yuan for 2026, and 5.2 billion yuan for 2027, with respective growth rates of 10.72%, 10.11%, and 7.93% [5][7] - Net profit forecasts are 2.22 billion yuan for 2025, 2.36 billion yuan for 2026, and 2.59 billion yuan for 2027, with growth rates of 8.94%, 6.16%, and 9.74% [5][7]

Core Viewpoint - Jiangyin Bank's H1 2025 report shows strong financial performance with significant growth in revenue and net profit, alongside a stable non-performing loan ratio and improved net interest margin, leading to a "buy" rating for the company [2][3]. Financial Performance - Jiangyin Bank's H1 2025 revenue increased by 10.45% year-on-year, while net profit attributable to shareholders rose by 16.63% [2]. - In Q2 2025, the bank's revenue grew by 14.67% year-on-year, an increase of 8.65 percentage points compared to Q1 2025 [2]. - Non-interest income surged by 30.26% year-on-year, primarily driven by investment income of 881 million yuan, which saw an impressive growth of 81.44% [2]. Interest Margin and Deposit Rates - The net interest margin for H1 2025 was 1.54%, up by 3 basis points from Q1 2025, while the net interest spread also increased by 3 basis points to 1.37% [2]. - The deposit interest rate for H1 2025 was 1.62%, down by 23 basis points from the end of 2024 [3]. Asset Quality - The non-performing loan ratio remained stable at 0.86% as of H1 2025, unchanged from Q1 2025 [3]. - The overdue loan ratio decreased to 1.06%, down by 29 basis points from the end of 2024, indicating improved asset quality [3]. - As of June 30, 2025, the provision coverage ratio was 381.22%, an increase of 31.22 percentage points from Q1 2025 [3]. Profit Forecast and Investment Rating - The company forecasts revenues of 4.4 billion yuan, 4.8 billion yuan, and 5.2 billion yuan for 2025-2027, with year-on-year growth rates of 10.72%, 10.11%, and 7.93% respectively [3]. - Projected net profits for the same period are 2.2 billion yuan, 2.4 billion yuan, and 2.6 billion yuan, with growth rates of 8.94%, 6.16%, and 9.74% respectively [3]. - Earnings per share (EPS) are expected to be 0.90, 0.96, and 1.05 yuan, with price-to-earnings (P/E) ratios of 4.50, 4.24, and 3.86, and price-to-book (P/B) ratios of 0.49, 0.45, and 0.40 for the same years [3].

Core Viewpoint - Zhejiang Commercial Bank reported a decline in key financial metrics for Q1 2025, with year-on-year growth rates for operating income, PPOP, and net profit attributable to shareholders at -7.07%, -5.32%, and 0.61% respectively, indicating a slowdown compared to 2024 [1] Group 1: Financial Performance - The total asset size of the company grew by 8.90% year-on-year in Q1 2025, an increase of 3.12 percentage points compared to 2024 [2] - Loan size increased by 6.85% year-on-year, but the growth rate decreased by 1.35 percentage points compared to 2024 [2] - Deposit size saw a year-on-year growth of 6.03%, with an increase of 3.16 percentage points compared to 2024 [2] - The company reported a net interest margin of 1.76% in Q1 2025, up by 5 basis points from 2024 [3] - Non-interest income decreased by 22.23% year-on-year in Q1 2025, with a significant drop in intermediary income and other non-interest income due to market adjustments [4] Group 2: Asset Quality and Efficiency - The non-performing loan ratio remained stable at 1.38% as of the end of Q1 2025, unchanged from 2024 [3] - The provision coverage ratio was 171.21%, showing a slight decrease of 7.46 percentage points compared to 2024 [3] - The cost-to-income ratio improved to 25.49%, down by 2.03 percentage points year-on-year, reflecting effective cost management [3] Group 3: Investment Outlook - The bank is well-positioned in Zhejiang Province, benefiting from a strong economic foundation and market-oriented mechanisms, with continuous credit expansion and stable asset quality [4]

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]