Core Viewpoint - Everbright Bank reported a revenue of 33.1 billion yuan in Q1 2025, a year-on-year decline of 4.06%, while the net profit attributable to shareholders was 12.5 billion yuan, showing a slight increase of 0.31% year-on-year [1] Performance Summary - Revenue and net profit growth rates for Q1 2025 were -4.06% and 0.31%, respectively, with a reduction in revenue decline by 3 percentage points and a decrease in net profit decline by 2 percentage points compared to 2024 [2] - Net interest income decreased by 6.84% year-on-year, but the decline narrowed by 3 percentage points compared to 2024, with a net interest margin drop of 5 basis points [2] - Fee and commission income increased by 3.27% year-on-year, with a growth rate improvement of 23 percentage points compared to 2024 [2] - Other non-interest income grew by 1.52% year-on-year, with investment net income surging by 302.96%, although fair value losses amounted to 3.1 billion yuan due to increased volatility in the bond market [2] Asset Quality Summary - The non-performing loan ratio remained stable at 1.25% compared to the end of the previous year, while the provision coverage ratio decreased by 6.2 percentage points to 174.44% [3] - The credit cost for Q1 2025 was 0.86%, a year-on-year decrease of 21 basis points [3] Asset and Liability Summary - As of the end of Q1 2025, total assets and loans reached 7.23 trillion yuan and 4.11 trillion yuan, respectively, with year-on-year growth rates of 4.80% and 5.24% [4] - The net increase in loans for the quarter was 177 billion yuan, with significant growth in loans to technology, green finance, and inclusive finance sectors [4] - Total deposits amounted to 4.27 trillion yuan, reflecting a year-on-year increase of 3.49% [4] Investment Recommendation - Everbright Bank's narrowing interest margin decline and growth in fee income suggest potential for better performance in the medium to long term, supported by a recovery in retail demand and wealth management business [4]

Investment Rating - The investment rating for the company is "Buy (Maintain)" [5] Core Views - The company's revenue for 2024 is reported at 135.4 billion, a year-on-year decrease of 7.05%, while the net profit attributable to shareholders is 41.7 billion, reflecting a year-on-year increase of 2.22. The non-performing loan ratio and provision coverage ratio at the end of Q4 2024 are 1.25% and 180.59%, respectively, remaining stable and improving by 9.9 percentage points compared to the previous quarter [1][4] Summary by Sections Performance - The company's revenue growth rate for 2024 is -7.05%, with a marginal improvement compared to the previous quarters. The net profit growth rate is 2.22%, also showing a slight increase from earlier quarters. This improvement is attributed to a stabilization in interest margins, a reduced decline in middle-income, and growth in other non-interest income [2] - Net interest income for 2024 decreased by 10.06%, but the decline is less severe than in previous quarters. The net interest margin for 2024 is 1.54%, remaining stable compared to the first half of 2024. The year-on-year decline in net interest margin is 20 basis points, which is a smaller drop than the previous year [2][3] Asset Quality - The non-performing loan ratio at the end of Q4 2024 is 1.25%, unchanged from the previous quarter. Key forward-looking indicators such as the attention rate and overdue rate have improved, standing at 1.84% and 2.02%, respectively, both down from Q2 2024 [4] - The provision coverage ratio at the end of Q4 2024 is 180.59%, an increase of 9.9 percentage points from the previous quarter. The credit cost for 2024 is 1.07%, a decrease of 37 basis points year-on-year [4] Assets and Liabilities - As of the end of Q4 2024, total assets and loans amount to 6.96 trillion and 3.93 trillion, respectively, with year-on-year growth rates of 2.75% and 3.88%. The growth in total assets is primarily driven by a rapid increase in interbank assets [10] - Total deposits at the end of Q4 2024 are 3.96 trillion, reflecting a year-on-year decrease of 1.67%, mainly due to a net reduction in corporate demand deposits [10] Investment Recommendations - In the short term, the company faces pressure on revenue due to declining interest margins and poor performance in fees. However, in the medium to long term, a recovery in retail demand and growth in wealth management business are expected to provide better performance elasticity, maintaining the previous "Buy" rating [11]