Core Viewpoint - The company's performance in the first three quarters of 2025 aligns with expectations, showing modest growth in net profit, pre-provision profit, and operating income compared to the previous year [1][2]. Performance Summary - Net profit, pre-provision profit, and operating income for the first three quarters of 2025 increased by 2.2%, 0.7%, and 1.8% year-on-year, respectively, indicating a positive trend in profitability [1]. - The growth rates for net profit, pre-provision profit, and operating income improved by 0.8 percentage points, 1.8 percentage points, and 1.0 percentage points compared to the first half of the year, driven by an increase in non-interest income and provisioning savings [1]. - Non-interest income, including net fee income, grew by 0.2% and 4.1% year-on-year, with growth rates improving by 2.4 percentage points and 2.7 percentage points, respectively, compared to the first half of the year [1]. - Asset impairment losses decreased by 3% year-on-year, with a decline of 4.8 percentage points compared to the first half of the year [1]. Asset Quality - As of the end of the third quarter, the company's non-performing loan ratio was 1.26%, down 2 basis points from the end of the first half [2]. - The proportion of special mention loans decreased to 1.57%, a decline of 2 basis points, while overdue loans decreased to 1.40%, down 1 basis point [2]. - The provision coverage ratio increased by 0.4 percentage points to 210.0%, while the loan-to-deposit ratio decreased by 3 basis points to 2.65% [2]. Profit Forecast and Valuation - The company maintains its profit forecast, with the current A-share price corresponding to 0.5 times the estimated price-to-book ratio for 2025 and 2026 [2]. - The target price for A-shares remains at 9.72 yuan, reflecting a potential upside of 37.0% from the current price [2]. - The current H-share price corresponds to 0.5 times the estimated price-to-book ratio for 2025 and 0.4 times for 2026, with a target price of 7.93 HKD, indicating a potential upside of 15.4% [2].

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]

Investment Rating - The investment rating for the company is "Buy" (maintained) [8] Core Views - The company has shown improvement in both revenue and profit, with a year-on-year revenue increase of 1.57% to approximately 427.09 billion yuan in the first half of 2025, and a net profit of 168.10 billion yuan, down 1.39% year-on-year [2][3] - The asset quality remains stable, with a non-performing loan ratio of 1.33% and a provision coverage ratio of 217.71% [4][25] - The bank's net interest margin recorded at 1.3%, with a significant reduction in the decline of net interest income due to easing interest margin pressure [2][16] Financial Performance Summary - Revenue for 2025 is projected to be approximately 816.9 billion yuan, with a growth rate of -0.59% [6] - The net profit attributable to shareholders is expected to be around 364.6 billion yuan for 2025, reflecting a slight decrease of 0.34% [6] - The bank's total assets grew by 11.0% year-on-year, with loans and financial investments increasing by 8.5% and 19.9% respectively [22] Non-Interest Income - Non-interest income has turned positive, with net fee and commission income of 67.02 billion yuan, a decrease of 0.57% year-on-year, while net other non-interest income reached 46.496 billion yuan, with investment net income increasing by 52.00% [3][21] Asset Quality - The non-performing loan ratio remains stable at 1.33%, with a slight improvement from the end of 2024 [25][27] - The provision coverage ratio has increased to 217.7%, providing a solid safety net for asset quality [4][25] Growth and Expansion - The bank continues to expand its scale, with both assets and liabilities achieving double-digit growth [22] - Total liabilities increased by 11.4% year-on-year, with deposits growing by 8.2% [24]

Investment Rating - The report maintains a rating of "Buy" for CITIC Bank (601998.SH) [1] Core Views - CITIC Bank's Q1 2025 report shows a revenue of 51.77 billion, a year-on-year decrease of 3.7%, and a net profit attributable to shareholders of 19.51 billion, a year-on-year increase of 1.7% [3][4] - The bank's annualized weighted average return on equity (ROE) for Q1 2025 is 11.42%, down 1.15 percentage points year-on-year [3] Summary by Sections Financial Performance - Revenue, PPOP, and net profit growth rates for Q1 2025 are -3.7%, -3.9%, and 1.7% respectively, showing a decline compared to 2024 [4] - Net interest income and non-interest income growth rates are 2.1% and -14.4% respectively, with significant declines from 2024 [4] Asset Quality - The non-performing loan (NPL) ratio remains stable at 1.16%, with a provision coverage ratio of 207.1% [9][10] - The bank's NPL balance is 67.85 billion, an increase of 1.36 billion from the beginning of the year [9] Capital Adequacy - As of Q1 2025, the core tier 1 capital ratio, tier 1 capital ratio, and total capital ratio are 9.45%, 10.9%, and 12.9% respectively, all showing a decline from the end of the previous year [10][30] Earnings Forecast and Valuation - The report forecasts EPS for 2025-2027 to be 1.25, 1.29, and 1.33 respectively, with current stock price corresponding to PB valuations of 0.54, 0.51, and 0.47 times [10][11]