Bank of Chengdu Q3 2025 Review: Steady Expansion in Scale with Robust Revenue and Profit

Deep News10-29

1. **Revenue and Profit Maintain Stability** Bank of Chengdu (601838.SH) reported revenue of 17.761 billion yuan and net profit attributable to shareholders of 9.493 billion yuan for the first three quarters of 2025, representing year-on-year growth of 3.01% and 5.03%, respectively. However, growth rates slowed by 2.90 and 2.26 percentage points compared to the first half. In Q3 alone, revenue declined 2.92% to 5.491 billion yuan, while net profit edged up 0.17% to 2.876 billion yuan. The annualized ROE stood at 15.20%, down 2.35 percentage points year-on-year but still above industry peers. The drag on revenue growth stemmed from narrowing net interest margins and weaker non-interest income, though the bank maintained higher-than-average asset expansion, with provisions marginally supporting profits.

2. **Rapid Scale Expansion Driven by Corporate Loans, While Bill Financing Declines** Total assets grew 13.4% year-on-year by the end of Q3 2025, exceeding 1.38 trillion yuan. Loans (excluding accrued interest) surged 17.4% to 846.2 billion yuan, with corporate loans contributing 98.9 billion yuan of the 104.9 billion yuan in new credit. Q3 saw a net increase of 12.8 billion yuan in loans, down 1.8 billion yuan year-on-year, as corporate lending rose by 21.5 billion yuan while bill financing dropped by 22 billion yuan. Deposits grew 11.4% from the start of the year. The core Tier-1 capital adequacy ratio dipped to 8.77% but improved slightly from June.

3. **NIM Declines QoQ, but Net Interest Income Growth Recovers** The Q3 net interest margin (NIM) fell 3 bps to 1.45% quarter-on-quarter. Net interest income rose 8.2% to 14.725 billion yuan in the first nine months, offsetting margin pressures. Non-interest income, however, dropped 16.5% to 3.036 billion yuan, with fee income down 35.2%.

4. **Asset Quality Remains Strong** The non-performing loan (NPL) ratio inched up to 0.68% by September, while the provision coverage ratio stayed high at 433.08%, albeit down 19.57 percentage points. The special-mention loan ratio improved to 0.37%, reflecting sustained asset quality.

5. **Investment Recommendation (Omitted)** 6. **Risk Warning** A weaker macroeconomic environment could negatively impact asset quality.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment