Investment Rating - The report maintains a "Recommended" rating for the company [1][4][8] Core Views - The company has shown a recovery in profitability driven by non-interest income, with a stable asset quality [4][7][8] - The bank's total assets reached 36.8 trillion yuan, a year-on-year increase of 8.5%, with loans and deposits growing by 9.1% and 8.4% respectively [4][7] - The bank's non-interest income grew significantly, with a year-on-year increase of 26.4% in the first half of 2025, primarily driven by agency, custody, and other entrusted business income [7][8] - The net interest margin has continued to decline, with a net interest margin of 1.26% in the first half of 2025, down 18 basis points year-on-year [7][8] - The bank's non-performing loan (NPL) ratio decreased to 1.24%, indicating a stable asset quality [8] Summary by Relevant Sections Financial Performance - In the first half of 2025, the company achieved an operating income of 329 billion yuan, a year-on-year increase of 3.8%, and a net profit attributable to shareholders of 117.6 billion yuan, a slight decline of 0.9% [4][7] - The annualized return on equity (ROE) was reported at 9.1% [4] Asset Quality - The NPL ratio decreased to 1.24%, with the annualized NPL generation rate at 0.57% [8][11] - The provision coverage ratio stood at 179%, indicating a robust risk mitigation capacity [8][11] Growth Projections - The report projects earnings per share (EPS) for 2025-2027 to be 0.74, 0.75, and 0.77 yuan respectively, with corresponding year-on-year growth rates of 0.2%, 1.4%, and 3.2% [8][12] - The bank's price-to-book (P/B) ratios for the same period are expected to be 0.69x, 0.65x, and 0.61x [8][12]