# Chengdu Bank Investment Research Analysis (601838)
## I. Profitability Performance The 2025 earnings report shows total operating revenue 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. For 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 slower growth than prior periods, primarily dragged down 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 appropriate 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 lower than industry average; loan loss reserve coverage ratio of 439.21%, providing substantial risk protection "safety buffer." Attention-list loan ratio remains low, assets are sound, and corporate infrastructure-related asset NPL ratios significantly outperform retail segment, with overall credit risk manageable.
## 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 drivers. Core tier-1 capital adequacy ratio of 8.93% meets regulatory requirements, but ongoing business expansion continuously consumes capital, creating certain capital replenishment pressure.
## IV. Operating Characteristics **Strengths:** Strong regional moat, stable liability base, superior asset quality, leading ROE, high proportion of corporate business, prominent customer concentration and regional synergy. **Pressures:** Persistent net interest margin compression, rising liability costs from deposit term deposits; low proportion and high volatility of non-interest income; lagging retail and intermediary business transformation.
## V. Core Conclusions Chengdu Bank exemplifies the urban commercial bank with high asset quality, high profitability efficiency, and high regional barriers. Earnings resilience is strong, but faces industry-wide and individual challenges including interest margin compression, slowing growth, capital constraints, and non-interest income shortcomings. Operational stability stands out, with growth momentum transitioning from high-speed to high-quality stable trajectory.
# Chengdu Bank Investment Research Analysis (601838)
## I. Profitability Performance
The 2025 earnings report shows total operating revenue 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. For 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 slower growth than prior periods, primarily dragged down 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 appropriate 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 lower than industry average; loan loss reserve coverage ratio of 439.21%, providing substantial risk protection "safety buffer." Attention-list loan ratio remains low, assets are sound, and corporate infrastructure-related asset NPL ratios significantly outperform retail segment, with overall credit risk manageable.
## 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 drivers. Core tier-1 capital adequacy ratio of 8.93% meets regulatory requirements, but ongoing business expansion continuously consumes capital, creating certain capital replenishment pressure.
## IV. Operating Characteristics
**Strengths:** Strong regional moat, stable liability base, superior asset quality, leading ROE, high proportion of corporate business, prominent customer concentration and regional synergy.
**Pressures:** Persistent net interest margin compression, rising liability costs from deposit term deposits; low proportion and high volatility of non-interest income; lagging retail and intermediary business transformation.
## V. Core Conclusions
Chengdu Bank exemplifies the urban commercial bank with high asset quality, high profitability efficiency, and high regional barriers. Earnings resilience is strong, but faces industry-wide and individual challenges including interest margin compression, slowing growth, capital constraints, and non-interest income shortcomings. Operational stability stands out, with growth momentum transitioning from high-speed to high-quality stable trajectory.