Beijing Bank Research and Analysis (Excluding Trading Recommendations)

I. Profitability and Scale
As of the end of September 2025, Beijing Bank's total assets amounted to 4.89 trillion yuan, making it a leading city commercial bank domestically. In the first three quarters, revenue reached 515.88 billion yuan, a decrease of 1.08% year-over-year; net profit attributable to shareholders was 210.64 billion yuan, a slight increase of 0.26% year-over-year, demonstrating strong profit resilience. The annualized weighted average return on equity was 9.86%, with a cost-to-income ratio of 28.13%, indicating stable operational efficiency.

Revenue is primarily driven by net interest income, which totaled 392.46 billion yuan in the first three quarters, with modest year-over-year growth; affected by declining interest rates, the annualized net interest margin fell to 1.26%, reaching historic lows and becoming the main pressure on revenue. Non-interest income accounts for a low proportion, with limited contributions from intermediary business and investment income, resulting in a relatively homogeneous revenue structure. The net operating cash flow was 333.319 billion yuan, reflecting ample liquidity.

II. Asset Quality
The non-performing loan (NPL) ratio stands at 1.29%, down 0.02 percentage points from the beginning of the year, indicating marginal risk improvement. The loan loss reserve coverage ratio is 195.79%, down 12.96 percentage points year-over-year and below 200%, suggesting a weakened capacity for risk mitigation. The bank actively disposes of non-performing assets related to real estate and reduces corporate risk exposure, but asset quality management pressures still exist.

III. Capital and Liabilities
The capital adequacy ratio is 12.82%, with a Tier 1 capital adequacy ratio of 11.87% and a core Tier 1 capital ratio of 8.44%, approaching regulatory thresholds and increasing pressure for capital replenishment, which constrains credit expansion and business development. Total deposits amounted to 26.35477 trillion yuan, an increase of 7.60% since the beginning of the year. The liability base is solid, with better cost control than peers, partially offsetting pressure from net interest margin compression.

IV. Core Assessment
Beijing Bank leverages its regional and scale advantages to maintain stable profitability, abundant cash flow, and controllable liability costs. The main challenges include narrowing net interest margins, weak non-interest income, declining reserve coverage, and relatively low capital adequacy ratios. The industry interest rate cycle and the progress of real estate risk resolution are key variables influencing future operations. Overall, the bank is in a transitional phase characterized by low growth, stable profits, strong risk management, and ongoing capital replenishment.