China says Nvidia broke competition rules, extends probe; stock off lows
Investing.com - JPMorgan has upgraded Bank of Nanjing (601009:CH) from Neutral to Overweight and raised its price target to RMB13.40 from RMB11.40.
The upgrade follows encouraging developments in the bank’s first-half 2025 results, which showed an improving contribution of core earnings to revenue and reduced earnings sensitivity to the bond market.
JPMorgan noted that FVPL (fair value through profit or loss) investments as a percentage of total assets dropped 5 percentage points half-over-half, indicating less reliance on dealing-based revenue that had previously concerned the firm.
The bank’s capital pressure is easing, supported by convertible bond conversion and enhanced internal capital generation in the second quarter of 2025, which JPMorgan expects will lead to stability in dividend policy.
Bank of Nanjing shares have underperformed this year, rising only 5% compared to the CSI banks index’s 8% gain, but JPMorgan anticipates outperformance driven by improving fundamentals and an attractive FY25E dividend yield of 5.1%, compared to the Big 4 banks’ average of 4.0%.
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