Investment Rating - The report maintains a "Buy" rating for Nanjing Bank [9]. Core Views - Nanjing Bank's revenue and asset quality continue to show a dual U-shaped improvement trend, with a year-on-year revenue growth rate of 8.8% for the first three quarters of 2025, and a quarterly growth rate of 9.1% in Q3. The net profit attributable to shareholders increased by 8.1% year-on-year, with a quarterly growth of 6.3% in Q3. The bank's corporate loans grew significantly by 14.6%, driving credit expansion, and it is expected that the annual credit growth will maintain around 15% [2][6][12]. - The bank has the highest proportion of fixed deposits among comparable peers, indicating significant room for improvement in liability costs during the current deposit rate reduction cycle. The non-performing loan ratio decreased by 1 basis point to 0.83% in Q3, while the provision coverage ratio increased by 2 percentage points to 313%, reflecting an optimization in asset quality indicators. Major shareholders, including state-owned and foreign investors, have continuously increased their holdings, highlighting the bank's long-term development value [2][12][28]. Summary by Sections Revenue and Profitability - Nanjing Bank's net interest income grew by 28.5% year-on-year, with a substantial quarterly increase of 40.5% in Q3. Non-interest income, however, declined by 11.6%, with fee income growing by 8.5% but investment income dropping by 16.2% due to market conditions [12][28]. Asset Quality - The bank's asset quality indicators have improved, with the non-performing loan ratio stable at 0.83% compared to the beginning of the year. The retail loan non-performing ratio decreased significantly by 10 basis points to 1.33% [12][28]. Loan and Deposit Growth - Total assets grew by 14.3% year-to-date, with loans increasing by 12.3%, primarily driven by a 14.6% growth in corporate loans. Retail loans saw a modest increase of 3.2%. Total liabilities also rose by 14.5%, with deposits growing by 9.7% [12][28]. Interest Margin - The bank's net interest margin improved by 9 basis points to 1.43%, supported by a reduction in liability costs. The proportion of fixed deposits is notably high at 79%, providing a buffer against interest margin pressures [12][28]. Investment Recommendations - The report suggests that the revenue growth and asset quality improvement trends will continue, with stable performance expected in the coming year. The bank's core tier one capital adequacy ratio has improved to 9.5%, and the expected dividend yield for 2025 is 4.7% [12][28].

Investment Rating - The investment rating for Ping An Bank is "Maintain Buy" [4]. Core Views - The report highlights improvements in asset quality, with a focus on retail structure optimization and support for the real economy. The bank's total assets grew by 2.10% year-on-year as of Q2 2025, driven mainly by a 9.23% increase in financial investments, while loans decreased by 0.15% [2][3]. - The bank's non-interest income has been a drag, declining by 11.30% year-on-year in H1 2025, primarily due to a drop in net fee income and other non-interest income [3]. - The bank announced a mid-term dividend of 2.36 CNY per share, totaling 4.58 billion CNY, which represents 20.05% of the net profit attributable to shareholders, indicating stable dividend sustainability [2][3]. Summary by Sections Performance - In H1 2025, the bank's operating income, PPOP, and net profit attributable to shareholders decreased by 10.0%, 10.4%, and 3.9% year-on-year, respectively. However, there was a recovery in growth rates compared to Q1 2025 [1][13]. - The bank's net interest margin was reported at 1.80%, a decrease of 3 basis points from Q1 2025, while the cost of interest-bearing liabilities decreased by 5 basis points [2][3]. Non-Interest Income - Non-interest income saw a significant decline, with net fee income down by 1.99% year-on-year, attributed to high base effects from the previous year [3][30]. Asset Quality - As of Q2 2025, the non-performing loan (NPL) ratio improved to 1.05%, a decrease of 1 basis point from the previous quarter. The bank's provision coverage ratio was reported at 238.48%, reflecting a comprehensive improvement in asset quality metrics [2][3]. Capital and Shareholder Returns - The bank's total market capitalization is approximately 234 billion CNY, with a current share price of 12.06 CNY, corresponding to a dynamic dividend yield of 4.9% [4][8].

Core Viewpoint - The insurance industry is rated as "outperforming the market" by Guolian Minsheng Securities, with expectations for positive trends in both the liability and asset sides, leading to improved investment returns and valuation recovery for insurance companies [1] Group 1: Stock and Performance Analysis - From January 2, 2025, to May 30, 2025, the insurance index increased by 0.1%, while the CSI 300 index decreased by 2.4%, indicating that the insurance index slightly outperformed the broader market [1] - Individual stock performance varied significantly, with China Pacific Insurance, China Life Insurance, New China Life Insurance, China Ping An, China Taiping, and China People’s Insurance showing price changes of +21.9%, +9.5%, +1.2%, +1.2%, +1.0%, and -8.7% respectively [1] - In Q1 2025, listed insurance companies showed strong performance on the liability side, with positive growth in life insurance NBV and improved COR for property insurance, although net profit and net asset performance on the asset side varied due to differences in investment strategies and asset classifications [1] Group 2: Life Insurance Sector Insights - The focus on the life insurance sector is primarily on NBV performance and interest spread risk, with short-term demand for insurance products slowing, leading to growth pressure on new single premiums [2] - However, measures such as the implementation of "reporting and pricing integration" in individual channels, potential further reductions in product preset interest rates, and active adjustments in product structures are expected to support a positive growth trend in NBV [2] - The liability cost is anticipated to improve significantly as the industry shifts towards dividend insurance products and adjusts preset interest rates in line with market rates [2] Group 3: Property Insurance Sector Insights - The low interest rate environment has prompted regulators to guide property insurance companies to enhance underwriting profitability, leading to noticeable improvements in COR [3] - The implementation of "reporting and pricing integration" in auto insurance is expected to extend to non-auto insurance, further improving COR in the property insurance sector [3] - The increasing share of new energy vehicle insurance is seen as a key area for future reforms, with expectations for reduced claims ratios and improved COR as policies are implemented [3] Group 4: Asset and Liability Management - The importance of matching assets and liabilities has increased due to the downward trend in long-term interest rates and the implementation of new standards, leading to greater volatility in insurance company profit statements [4] - To stabilize net profit and net assets, insurance companies are expected to increase allocations to bonds and high-dividend stocks [4] - Increasing the proportion of bonds will help extend asset duration and reduce the duration gap between assets and liabilities, while high-dividend stocks will enhance investment returns and mitigate the impact of declining investment yields [4]