Minsheng Bank Research and Analysis Report (As of Q3 2025)

I. Profitability Performance
In the first three quarters of 2025, operating revenue reached 108.509 billion yuan, up 6.74% YoY; net profit attributable to parent company was 28.542 billion yuan, down 6.38% YoY, with profitability under pressure. Net interest income was 75.51 billion yuan, up 2.40% YoY, with net interest margin at 1.42%, up 2BP YoY; non-interest net income rose 18.2% YoY, with trading and bond businesses contributing improved results. The main reason for net profit decline is increased credit impairment provisions and retail asset quality pressure.

II. Asset Quality
As of end of Q3, the non-performing loan ratio was 1.48%, up 0.01 percentage points from year-end; loan loss reserves coverage ratio was 143.00%, with modest improvement and slightly enhanced risk buffering capacity. The proportion of special mention loans remained stable, real estate NPLs showed some improvement, but retail credit NPLs in segments like credit cards showed rising generation trends, with asset disposal costs remaining elevated.

III. Scale and Structure
Total assets: 7.87 trillion yuan, up 0.74% from year-end; total loans: 4.44 trillion yuan, slightly down YoY, with cautious credit deployment. Liability costs declined somewhat, supporting net interest margin stabilization; operating cash flow returned to positive, with overall liquidity remaining stable.

IV. Operations and Industry Positioning
Systemically important domestic bank with leading scale among joint-stock banks, focusing on SME financing and corporate finance. Advancing digital transformation and inclusive green finance transition, with faster mid-to-back office business growth; however, intensifying industry competition is weakening client base and pricing advantages.

V. Core Risks and Highlights
Highlights: stable net interest margin, strong mid-to-back office growth, modest reserve recovery, AAA credit rating for the bank.
Risks: continued profit decline, retail NPL pressure, relatively low reserve levels, historical fluctuations in equity structure and governance.

VI. Overall Assessment
The bank is in an asset quality clean-up and strategic transformation period, with improvement in revenue, but profit recovery constrained by credit costs. Looking ahead, SME financing and digital transformation are expected to provide support, while in the near term attention needs to be paid to NPL convergence and net interest margin sustainability.

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