Core Viewpoint - Industrial Bank (601166.SH) reported a marginal recovery in key profitability indicators for Q3, with a narrowing decline in revenue and a slight increase in net profit, although the growth rate has slowed down [1] Financial Performance - For the first three quarters, the bank achieved operating income of 161.23 billion yuan, a year-on-year decline of 1.82%, but the decline narrowed by 0.47 percentage points compared to the first half of the year [1] - The net profit attributable to shareholders was 63.08 billion yuan, a year-on-year increase of 0.12%, with the growth rate slowing down from the first half of the year [1] - The net interest margin decreased by 12 basis points [1] - Interest income for the first three quarters was 110.96 billion yuan, down 0.56% year-on-year, but the decline narrowed by 0.96 percentage points compared to the first half [1] - Net fee and commission income was 20.08 billion yuan, up 3.79% year-on-year, with the growth rate expanding by 1.20 percentage points compared to the first half [1] - Other non-interest income was 30.19 billion yuan, down 9.28% year-on-year due to market interest rate fluctuations [1] Dividend Distribution - The bank initiated a mid-term dividend distribution, proposing a cash dividend of 0.565 yuan per share (before tax), totaling approximately 11.96 billion yuan based on the total share capital of 21.16 billion shares as of June 30, 2025 [1][2] Asset and Liability Overview - As of the end of Q3, total assets reached 10.67 trillion yuan, an increase of 1.57% from the end of the previous year [2] - Customer loan balance was 5.99 trillion yuan, up 4.42% year-on-year, with corporate loans contributing significantly to growth at 7.54%, while personal loans decreased by 2.49% [2] - Customer deposit balance was 5.83 trillion yuan, an increase of 5.47% year-on-year, with time deposits growing by 11.06% [2] Risk Management - The bank's non-performing loan (NPL) balance was 64.56 billion yuan, an increase of 3.08 billion yuan from the end of the previous year, with an NPL ratio of 1.08%, up 0.01 percentage points [3] - The bank reported a decrease in asset impairment losses to 42.31 billion yuan, down 11.30% year-on-year, with a provision coverage ratio of 227.81%, indicating a sufficient level [3] - The bank's management indicated that the peak period of concentrated risk exposure has passed, and there is still room for optimizing risk costs [3][4]