Chengdu Bank Investment Research Analysis (601838)

1. Profitability Performance
The 2025 earnings report shows total operating revenue of 23.915 billion yuan (YoY +3.30%), net profit attributable to parent company of 13.52 billion yuan (YoY +5.21%), maintaining positive profit growth; weighted average ROE of 15.88%, ranking at the top tier among listed banks. In the first three quarters, operating revenue was 17.761 billion yuan and net profit attributable to parent was 9.493 billion yuan, with YoY growth of 3.01% and 5.03% respectively, showing deceleration compared to previous periods, mainly dragged by net interest margin compression and non-interest income decline. Non-interest income declined 16.53% YoY with notable fluctuations in investment income. Profit resilience stems from credit scale expansion and moderate reserve release, with earnings stability superior to industry average.

2. Asset Quality
Asset quality consistently ranks in the first tier of A-share listed banks: non-performing loan ratio of 0.67% (YoY -0.02pct), far below industry average; loan loss reserve ratio of 439.21%, with substantial "safety cushion" for risk coverage. Attention-needed loans maintained at low levels, assets quality is robust, with corporate infrastructure assets showing significantly lower NPL rates than retail segment, overall credit risk is controllable.

3. Scale and Capital
Total assets exceeded 1.4 trillion yuan, with loans and total assets maintaining steady expansion, deepening service to the Chengdu-Chongqing dual-city economic circle, with government affairs and infrastructure credit as core drivers. Core tier-1 capital adequacy ratio of 8.93%, meeting regulatory requirements, but continuous business expansion consumes capital, creating certain capital replenishment pressure.

4. Operating Characteristics
Strengths: strong regional barriers, stable liability base, superior asset quality, leading ROE, high corporate business proportion, prominent customer concentration and regional synergy.
Pressures: persistent net interest margin compression, deposit term structuring raising liability costs; low non-interest income proportion with high volatility; lagging retail and intermediary business transformation.

5. Core Conclusion
Chengdu Bank is a representative city commercial bank with high asset quality, high profitability efficiency, and high regional barriers, demonstrating strong earnings resilience, yet facing industry-wide and individual challenges including margin compression, growth deceleration, capital constraints, and non-interest income shortcomings. Operating stability stands out prominently, with growth momentum transitioning from high-speed growth to high-quality stable range.