Chengdu Bank Investment Research Analysis (601838)

I. Profitability Performance
The 2025 performance quick report shows total operating income of 23.915 billion yuan (YoY +3.30%), with net profit attributable to parent company of 13.52 billion yuan (YoY +5.21%), maintaining positive profit growth. The weighted average ROE is 15.88%, ranking at the high end among listed banks. In the first three quarters, operating revenue reached 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 by net interest margin compression and non-interest income decline. Non-interest income declined 16.53% YoY with notable 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 firmly in the first tier among A-share listed banks: non-performing loan ratio of 0.67% (YoY -0.02pct), significantly below industry average; loan loss reserve coverage ratio of 439.21%, providing a robust "safety cushion" for risk mitigation. Attention loan ratio remains low, asset quality is solid, with corporate infrastructure asset NPL ratios significantly outperforming retail, overall credit risk is controllable.

III. Scale and Capital
Total assets surpass 1.4 trillion yuan, with loans and total assets maintaining steady expansion, deeply serving the Chengdu-Chongqing dual-city economic circle, with government affairs and infrastructure lending as core drivers. Core Tier 1 capital adequacy ratio stands at 8.93%, meeting regulatory requirements, but continuous business expansion consumes capital, presenting certain capital replenishment pressure.

IV. Operating Characteristics
Advantages: Strong regional barriers, stable liability base, superior asset quality, leading ROE, high proportion of corporate business, prominent customer concentration and regional synergy.
Pressures: Sustained net interest margin compression, term deposit structuring driving up liability costs; low non-interest income proportion with high volatility; lagging retail and intermediary business transformation.

V. Core Conclusions
Chengdu Bank is a representative urban commercial bank characterized by high asset quality, high profit efficiency, and strong regional barriers, with robust earnings resilience, but facing industry-wide and individual challenges including margin compression, growth deceleration, capital constraints, and non-interest income shortcomings. Operational stability is prominent, with growth momentum transitioning from high growth to a high-quality stable zone.