Ping An Securities: Changshu Bank's interim dividend increases, pay attention to the convertible bond process, maintaining a "strong buy" rating

Ping An Securities research report points out that Changshu Bank achieved a net profit attributable to shareholders of 1.97 billion yuan in the first half of 2025, a year-on-year increase of 13.5%. As of the end of June 2025, Changshu Bank's total assets reached 401.2 billion yuan, an increase of 9.45% compared to the beginning of the year, with loans increasing by 4.40% and deposits increasing by 8.46%. According to the company's mid-term profit distribution plan for 2025, the mid-term dividend payout ratio is 25.27%. The company focuses on changes in retail and small micro businesses, with an increase in mid-term dividend levels. The company has always adhered to the market positioning of "three rural issues and two small businesses," continuously pursuing differentiated development through deepening inclusive finance, targeting customer segments, and expanding in different locations. Retail and small micro businesses are steadily developing, and the company is expected to continue benefiting from the sustained recovery in demand from small micro enterprises and retail customers. The mid-term dividend rate for 2025 reached 25.27%, significantly higher than in previous years. In addition, as of August 12, the company's convertible bond balance reached 6 billion yuan, and based on the closing price on August 12, it has exceeded the strong redemption price of the convertible bonds. If successful in conversion, the capital strength is expected to further increase. The bank maintains its profit forecast for the company and is optimistic about the development space for small micro businesses in the long term, maintaining a "strongly recommend" rating