Beijing Bank Research and Analysis (Excluding Trading Advice)

I. Profitability and Scale
As of the end of September 2025, Beijing Bank's total assets reached 4.89 trillion yuan, making it a leading city commercial bank domestically. In the first three quarters, operating revenue was 515.88 billion yuan, down 1.08% year-over-year; net profit attributable to parent company was 210.64 billion yuan, up 0.26% year-over-year, demonstrating strong earnings 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 reached 392.46 billion yuan in the first three quarters with slight year-over-year growth; however, impacted by rate declines, the annualized net interest margin declined to 1.26%, hitting historical lows and representing the main headwind to revenue. Non-interest income proportion remains low, with limited contribution to profits from intermediate business and investment income, resulting in a single revenue structure. Operating cash flow net amount was 333.319 billion yuan, with ample liquidity.
II. Asset Quality
The non-performing loan ratio stands at 1.29%, down 0.02 percentage points from year-end, showing marginal risk improvement. Loan loss reserve coverage ratio was 195.79%, down 12.96 percentage points year-over-year and below 200%, indicating a slight weakening in risk cushioning capacity. The company proactively disposed of real estate-related NPLs and reduced corporate risk exposure, though asset quality management pressures persist.
III. Capital and Liabilities
Capital adequacy ratio was 12.82%, Tier 1 capital adequacy ratio 11.87%, core Tier 1 capital adequacy ratio 8.44%, approaching regulatory thresholds with increasing capital supplementation pressures, constraining credit expansion and business layout. Total deposits reached 2,635.477 billion yuan, up 7.60% from year-end, with a solid liability base and liability cost management superior to peers, partially offsetting net interest margin pressures.
IV. Key Conclusions
Beijing Bank, leveraging regional and scale advantages, maintains stable profitability, abundant cash flow, and controllable liability costs; main pressures stem from narrowing net interest margin, weak non-interest income, declining reserve thickness, and low capital adequacy ratio. Industry rate cycles and real estate risk clearance progress are key variables affecting future operations. Overall, the bank is in a transition phase of low growth, stable profitability, strong risk controls, and capital supplementation.
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