Investment Rating - The report maintains an "Accumulate" rating for Jiangyin Bank (002807.SZ) with a current price of 4.63 CNY [1] Core Views - Jiangyin Bank's revenue and profit have shown significant growth, with a revenue of 2.4 billion CNY for the first half of 2025, representing a year-on-year increase of 10.5%, and a net profit attributable to shareholders of 850 million CNY, up 16.6% year-on-year [4][5] - The bank's non-interest income has accelerated, contributing significantly to revenue growth, while the net interest margin (NIM) has improved against the trend, reaching 1.54% [5][8] - The bank's asset quality remains stable, with a non-performing loan (NPL) ratio of 0.86% and a robust provision coverage ratio of 381.2% [10][11] Summary by Sections Financial Performance - Jiangyin Bank achieved a year-on-year revenue growth of 10.5% and a net profit growth of 16.6% in the first half of 2025, with a return on average equity (ROAE) of 8.98%, up 0.5 percentage points year-on-year [4][5] - The bank's net interest income and non-interest income growth rates were -0.2% and 30.3%, respectively, with significant improvements from the first quarter [5] Loan and Deposit Growth - As of the end of the second quarter of 2025, the bank's interest-earning assets and loans grew by 3.2% and 7% year-on-year, with a total loan addition of 7.3 billion CNY in the first half [6] - Deposits increased by 10.4 billion CNY in the first half, with a year-on-year growth of 16% [7] Interest Margin and Non-Interest Income - The bank's NIM improved by 3 basis points to 1.54% in the first half of 2025, despite a decline in asset yields and loan pricing pressure [8] - Non-interest income reached 1 billion CNY, growing by 30% year-on-year, with investment income being the primary contributor [9] Asset Quality and Capital Adequacy - The NPL ratio remained low at 0.86%, with a provision coverage ratio of 381.2%, indicating strong risk mitigation capabilities [10][11] - The bank's capital adequacy ratios are robust, with a core Tier 1 capital ratio of 13.7% as of the end of the second quarter of 2025 [11] Earnings Forecast and Valuation - The earnings per share (EPS) forecasts for 2025-2027 have been adjusted to 0.91, 0.98, and 1.05 CNY, with corresponding price-to-book (PB) and price-to-earnings (PE) ratios indicating attractive valuations [12][24]