Chengdu Bank Investment Research Analysis (601838)

I. Profitability Performance
The 2025 performance flash 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%), with profitability maintaining positive growth; weighted average ROE of 15.88%, positioned at the high end among listed banks. In the first three quarters, operating revenue was 17.761 billion yuan and net profit attributable to parent company was 9.493 billion yuan, with YoY growth rates of 3.01% and 5.03% respectively, showing deceleration compared to earlier periods, mainly dragged down by net interest margin compression and non-interest income decline. Non-interest income declined 16.53% YoY with significant investment income volatility. Profit resilience stems from credit scale expansion and moderate reserve release, with earnings stability superior to industry average.

II. Asset Quality
Asset quality ranks in the first tier among A-share listed banks: non-performing loan ratio of 0.67% (YoY -0.02pct), far below industry average; provision coverage ratio of 439.21%, with substantial risk buffer "safety margin". Attention-class loan ratio maintained at low level, assets quality stable and healthy, with corporate infrastructure assets NPL ratio significantly better than retail, overall credit risk controllable.

III. Scale and Capital
Total assets surpassed 1.4 trillion yuan, with loans and total assets maintaining steady expansion, deeply serving the Chengdu-Chongqing dual-city economic circle, with government and infrastructure credit as core handles. Core tier-1 capital adequacy ratio of 8.93%, meeting regulatory requirements, but continuous business expansion consumes capital, posing certain capital replenishment pressure.

IV. 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: sustained compression of net interest margin, term deposit preference raising liability costs; low non-interest income proportion with high volatility; lagging transformation in retail and intermediate business.

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