BANK OF QINGDAO(002948) 长江证券·2025-05-05 02:41Investment Rating - The investment rating for Qingdao Bank is "Buy" and is maintained [9]. Core Views - The report indicates that Qingdao Bank's Q1 2025 revenue growth was 9.7%, with a net profit growth of 16.4%. The net interest income grew by 12.0%, driven by a strong rebound in interest margins. Non-interest income also saw a year-on-year increase of 5.6% despite adverse effects from the bond market adjustment [2][6]. - The bank's asset quality is on a continuous improvement trajectory, with a non-performing loan ratio decreasing to 1.13% and a provision coverage ratio rising to 251% by the end of Q1 [2][6]. Summary by Sections Performance - In Q1 2025, Qingdao Bank achieved a revenue growth of 9.7% and a net profit growth of 16.4%. The net interest income increased by 12.0%, primarily due to a strong recovery in interest margins. Non-interest income grew by 5.6% year-on-year, with investment income and fair value changes rising by 19.3% [2][11]. Scale - By the end of Q1, total assets grew by 3.4%, loans by 5.4%, and deposits by 3.9% compared to the beginning of the year. The bank focused on optimizing the structure of assets and liabilities, increasing the proportion of high-yield assets and low-cost liabilities [11][12]. Interest Margin - The net interest margin exceeded expectations, rising by 4 basis points to 1.77% compared to the full year of 2024. The cost of interest-bearing liabilities decreased significantly, contributing to the acceleration of net interest income growth [11][12]. Asset Quality - The bank's asset quality indicators are improving, with the non-performing loan ratio declining and the provision coverage ratio reaching a new high since its listing. The net generation rate of non-performing loans has decreased to 0.52%, indicating strong performance relative to the industry [11][12]. Investment Recommendation - The report suggests that the market has not fully recognized the ongoing improvement in Qingdao Bank's quality and efficiency. The bank is expected to maintain a high growth rate in earnings, supported by optimized asset-liability structures and continuous risk improvement. The current A-share PB valuation is only 0.64x, indicating it is undervalued compared to other quality city commercial banks [11][12].