Investment Rating - The report maintains a rating of "Buy" for the company [4]. Core Views - The company has shown improvement in asset quality, with a significant decrease in the non-performing loan generation rate and stable non-performing loan ratio [2]. - The company's liability costs have improved, with a slight decrease in net interest margin [2]. - The company is experiencing a recovery in loan growth, particularly in corporate loans, while retail loan growth remains negative [2]. Summary by Sections Performance - For the first three quarters of 2025, the company's operating income, PPOP, and net profit attributable to shareholders decreased by 9.78%, 9.84%, and 3.50% year-on-year, respectively, but showed a recovery compared to the first half of 2025 [1][13]. - The total assets grew by 0.36% year-on-year, with corporate loans increasing by 9.9% [2][13]. Non-Interest Income - Non-interest income decreased by 12.63% year-on-year, with net fee income slightly declining by 0.14% [3][32]. - Other non-interest income saw a significant drop of 24.12%, primarily due to a substantial decrease in trading gains [3][32]. Interest Margin and Liabilities - The net interest margin for the first three quarters of 2025 was 1.79%, a slight decrease of 1 basis point compared to the first half of 2025 [2][13]. - The cost of liabilities improved, with a 6 basis point decrease in deposit costs, effectively offsetting the downward pressure on asset yields [2][13]. Asset Quality - The non-performing loan ratio remained stable at 1.05%, with a notable decrease in the non-performing loan generation rate by 90 basis points compared to the first half of 2025 [2][3]. - The company has successfully recovered a significant amount of non-performing assets, with a cash recovery rate of 97.9%, the highest in recent years [2][3]. Capital and Shareholder Returns - The company has maintained a stable dividend payout ratio, with a dynamic dividend yield of 5.1% based on the latest closing price [3][4]. - The report indicates that the company's capital consumption is slow, and the expansion of its scale has noticeably slowed down [3][4].

Core Viewpoint - Ping An Bank reported a steady business performance in its Q3 2025 results, focusing on enhancing retail, corporate, and interbank operations while strengthening risk management and digital transformation efforts [1] Business Performance Summary - For the first nine months of 2025, Ping An Bank achieved operating income of CNY 100.668 billion, a year-on-year decrease of 9.8%, primarily due to declining loan interest rates and structural adjustments [2] - The net interest margin was 1.79%, down 14 basis points from the previous year, while non-interest income from bond investments decreased due to market volatility [2] - Net profit for the period was CNY 38.339 billion, a decline of 3.5% year-on-year [2] - Total assets reached CNY 5,766.764 billion, with loans and advances totaling CNY 3,417.753 billion, reflecting a 1.3% increase from the end of the previous year [2] Retail Business - The retail strategy remains a priority, with personal loans totaling CNY 1,729.192 billion, down 2.1% from the previous year [4] - Mortgage loans increased by 8.1% to CNY 352.350 billion, while credit card receivables and consumer loans saw declines [4] - Personal deposits stood at CNY 1,279.630 billion, a slight decrease of 0.6%, but the average daily balance increased by 4.2% year-on-year [5] Corporate Business - Corporate loans reached CNY 1,688.561 billion, up 5.1% from the previous year, with corporate deposits growing by 1.3% to CNY 2,275.325 billion [6][7] - The bank focused on supporting key industries, with new loans in infrastructure, automotive, and public utilities increasing by 11.8% [7] - Strategic customer segments were developed, with the number of corporate clients rising by 9.7% to 935,700 [7] Interbank Business - The interbank business is driven by investment and trading, with a focus on enhancing investment capabilities and capturing structural trading opportunities [8][9] - The number of value clients in interbank institutions reached 1,438, with a significant increase in trading volumes [9] Sustainable Development and Social Responsibility - Ping An Bank is committed to green finance, with green loans totaling CNY 261.280 billion, a 10.0% increase from the previous year [10] - The bank supports rural revitalization with CNY 43.295 billion allocated for related initiatives, contributing to a cumulative total of CNY 195.542 billion [10] - The bank aims to enhance financial services for the real economy, focusing on consumer finance and manufacturing sectors [11]

Investment Rating - The report maintains a strong recommendation for the company, suggesting active attention due to its solid fundamentals and strong growth potential [4]. Core Views - The company has shown significant growth in total assets, with a year-on-year increase of 16.02% as of Q2 2025, driven by a 20.62% increase in corporate loans and an 18.07% increase in investment assets [2]. - The net interest margin has improved to 1.53%, which is a 2 basis points increase compared to the previous year, indicating a positive trend despite a challenging interest rate environment [2]. - The non-performing loan ratio has decreased to 1.09%, with a provision coverage ratio rising to 343.24%, reflecting improved asset quality [2]. - The company has experienced a 13.64% year-on-year increase in net fee and commission income, outperforming peers in this area [2]. Summary by Sections 1. Performance - In H1 2025, the company reported revenue growth of 5.76%, pre-provision operating profit (PPOP) growth of 6.00%, and net profit growth of 16.48% [1][4]. - The growth in net profit is supported by a decrease in provision expenses and an effective tax rate [1]. 2. Non-Interest Income - The company faced a decline in other non-interest income, with a year-on-year decrease of 24.25% in H1 2025, despite strong growth in net fees and commissions [3][30]. 3. Interest Margin and Asset-Liability Management - The net interest margin has shown resilience, increasing to 1.53% in H1 2025, while the cost of interest-bearing liabilities has improved significantly [2][12]. - The company has effectively managed its funding costs, with a notable reduction in the cost of deposits and bonds issued [2]. 4. Asset Quality - The non-performing loan ratio has decreased to 1.09%, with a significant drop in non-performing loans by 1.23 million yuan [2][12]. - The provision coverage ratio has improved to 343.24%, indicating a strong buffer against potential loan losses [2]. 5. Capital and Shareholders - The company has completed the conversion of 8 billion yuan in convertible bonds, further strengthening its capital base [4]. - The major shareholder is the Commonwealth Bank of Australia, holding a 14.66% stake [4].

Group 1: Financial Performance - In Q1 2025, the bank's revenue was CNY 33.709 billion, a year-on-year decrease of 13.1% [2] - Net profit for Q1 2025 was CNY 14.096 billion, down 5.6% year-on-year [2] - The bank's operating expenses were CNY 9.055 billion, a decrease of 13.2% year-on-year [2] Group 2: Dividend Distribution - For the year 2024, the bank plans to distribute a cash dividend of CNY 6.08 per 10 shares, totaling CNY 11.799 billion, which is 28.32% of the net profit attributable to ordinary shareholders [3] - The interim dividend for 2024 is CNY 2.46 per 10 shares, amounting to CNY 4.774 billion [3] - The final dividend for 2024 is CNY 3.62 per 10 shares, totaling CNY 7.025 billion [3] Group 3: Asset Quality - As of March 2025, the non-performing loan (NPL) ratio was 1.06%, unchanged from the end of the previous year [5] - The provision coverage ratio was 236.53%, with a provision-to-loan ratio of 2.50% [5] - In Q1 2025, the bank wrote off loans amounting to CNY 17.065 billion and recovered CNY 9.425 billion in non-performing assets [5] Group 4: Interest Margin - The net interest margin in Q1 2025 was 1.83%, a decrease of 18 basis points year-on-year [4] - The bank anticipates continued downward pressure on the net interest margin in 2025, but at a slower rate [4] Group 5: Wealth Management - Wealth management fee income in Q1 2025 was CNY 1.208 billion, a year-on-year increase of 12.5% [6] - Personal insurance income grew by 38.7% to CNY 0.344 billion, while personal fund income increased by 5.7% to CNY 0.522 billion [6] Group 6: Capital Adequacy - As of the end of 2024, the bank's capital adequacy ratios were 9.12% for core tier 1, 10.69% for tier 1, and 13.11% for total capital [8] - The bank plans to balance internal and external capital replenishment to maintain adequate capital levels [8] Group 7: Deposit Growth - As of March 2025, personal deposits totaled CNY 1,330.883 billion, a growth of 3.4% from the end of the previous year [9] - The average daily balance of personal deposits in Q1 2025 was CNY 1,316.631 billion, up 6.5% year-on-year [9] Group 8: Loan Growth - As of March 2025, personal loan balances were CNY 1,729.046 billion, a decrease of 2.2% from the end of the previous year [10] - Housing mortgage loans increased by 4.1% to CNY 339.434 billion, while credit card receivables decreased by 7.9% to CNY 400.638 billion [10]

Core Viewpoint - Ping An Bank reported a decline in both revenue and net profit for Q1 2025, while also announcing plans to issue capital bonds totaling up to RMB 100 billion to strengthen its capital structure [2][3]. Financial Performance - For Q1 2025, Ping An Bank achieved operating revenue of RMB 33.709 billion, a year-on-year decrease of 13.1%, and a net profit of RMB 14.096 billion, down 5.6% year-on-year [2]. - The net interest margin fell to 1.83%, a decrease of 18 basis points compared to the same period last year [2]. - The non-performing loan ratio remained stable at 1.06%, unchanged from the end of the previous year [2]. Retail Business Adjustments - The bank's retail loan scale continued to shrink, with personal loan balances at RMB 1,729.046 billion, down 2.2% from the end of the previous year [3]. - High-risk loans decreased, with credit card receivables down 7.9% to RMB 400.638 billion and consumer loans down 3.2% to RMB 459.315 billion [3]. - The quality of retail assets improved, with the personal loan non-performing rate at 1.32%, a decrease of 0.07 percentage points from the end of the previous year [3]. Corporate Lending Growth - Corporate loans increased to RMB 1,682.667 billion, a growth of 4.7% from the end of the previous year [4]. - The bank's focus on four major industries (infrastructure, automotive ecosystem, public utilities, and real estate) resulted in new corporate loans of RMB 123.571 billion, a year-on-year increase of 13.3% [5]. - New loans in emerging industries reached RMB 73.956 billion, growing by 32.7% year-on-year [5]. Cost Management and Efficiency - The bank's operating costs decreased, with business and management expenses at RMB 9.055 billion, down 13.2% year-on-year [5]. - Credit and other asset impairment losses were RMB 7.430 billion, a reduction of 20.9% compared to the previous year [5].