Investment Rating - The report maintains a "Recommend" rating for Chongqing Bank, with a target price of 13.01 CNY / 9.48 HKD [2][8]. Core Insights - Chongqing Bank reported a revenue of 15.113 billion CNY for 2025, reflecting a year-on-year growth of 10.48%. The net profit attributable to shareholders reached 5.654 billion CNY, also up by 10.49% year-on-year. The non-performing loan (NPL) ratio increased slightly by 1 basis point to 1.14%, while the provision coverage ratio decreased by 2.5 percentage points to 245.6% [2][8]. - The bank's net interest income saw a significant increase, with a year-on-year growth of 47.7% in Q4 2025, driven by strong corporate lending and stable interest margins. The overall revenue growth for the year remained above 10% despite fluctuations in non-interest income [7][8]. - The bank's credit scale maintained a robust growth of 20.7% year-on-year by the end of 2025, primarily due to strong demand for corporate loans in the Sichuan-Chongqing region, supported by national strategic initiatives [7][8]. - The net interest margin remained stable at 1.39% in Q4 2025, with a year-on-year increase of 5 basis points to 1.38%. The decline in funding costs contributed to this stability [7][8]. - Asset quality remained generally stable, with the NPL ratio slightly increasing to 1.14%. The bank has increased its provisioning efforts due to pressures on retail loan quality, but overall risk management remains under control [7][8]. Financial Summary - For 2025, the total revenue is projected at 15.113 billion CNY, with a year-on-year growth rate of 10.48%. The net profit attributable to shareholders is expected to be 5.654 billion CNY, also reflecting a growth of 10.50% [9]. - The bank's total assets are estimated to reach 1,033.726 billion CNY in 2025, with a projected increase to 1,182.807 billion CNY by 2026 [10][13]. - The NPL ratio is expected to gradually decrease to 1.09% by 2028, while the provision coverage ratio is projected to decline to 214% in the same year [11][13].