Core Viewpoint - Shanghai Bank reported a stable performance in the first half of 2025, with a slight increase in revenue and net profit, indicating a recovery in revenue growth and strong non-interest income [1][2] Revenue and Profitability - In the first half of 2025, Shanghai Bank achieved an operating income of 27.3 billion RMB, with a year-on-year growth rate of 4.2% [1] - The net profit attributable to shareholders was 13.2 billion RMB, reflecting a year-on-year increase of 2.0% [1] - The annualized weighted average ROE for the first half of 2025 was 11.0%, up by 0.36 percentage points from the first quarter [1] Non-Interest Income - Non-interest income grew by 8.1% year-on-year, significantly improving from a decline of 6.0% in the previous quarter [2] - Investment income surged by 34.4%, benefiting from fluctuations in bond market interest rates [2] Cost of Liabilities and Asset Growth - The net interest margin at the end of the first half of 2025 was 1.15%, continuing a downward trend [3] - The loan interest rate decreased by 47 basis points to 3.29% compared to the end of 2024 [3] - Total assets reached 3.29 trillion RMB, with a year-on-year growth rate of 2.2% [1][3] Asset Quality - The non-performing loan ratio remained stable at 1.18% as of the end of the first half of 2025 [4] - The annualized non-performing loan generation rate was estimated at 1.45%, slightly up from the end of 2024 [4] - The provision coverage ratio was 244%, indicating a strong ability to cover potential losses [4] Investment Outlook - Shanghai Bank is focusing on key regions and sectors, including consumer finance and wealth management, to enhance its competitive advantage [5] - The estimated EPS for 2025-2027 is projected to be 1.72, 1.82, and 1.92 RMB, with corresponding growth rates of 3.6%, 5.7%, and 6.0% [5]