Investment highlights of the interim report: 1. Interest spreads led to an 8.9% month-on-month increase in net interest income, and the quarterly annualized net interest spread in the 2nd quarter was 2.28%, up 12 bps over the previous month, with simultaneous contributions from both sides of capital and liability. 2. The capital structure has been optimized, and the share of deposits and loans continues to rise. The proportion of credit and deposits in interest-bearing assets and interest-bearing liabilities has increased, and the proportion of high-yield personal loans in total loans has risen, driving up the yield on interest-bearing assets. 3. Asset quality is stable, moderate and positive, the overall non-performing rate and bad generation rate have improved, and the provision coverage rate has been further increased to 249%. Insufficient reporting: 1. The growth rate of handling fees is weak, with a year-on-year growth rate of -22%, hampered by agency services and credit commitments. 2. The overdue rate rose slightly, mainly due to an increase in loans overdue within 90 days. The overdue rate for the second quarter was 1.83%, up 42 bps from the previous month. The net annualized overtime generation in a single quarter was 1.26%, up 59 bps from the beginning of the year. The high performance growth rate declined slightly. At the same time, the company stepped up preparations and planning efforts in the second quarter. The decline in net profit growth was higher than the decline in revenue growth, but it still maintained an increase of more than 10%. The year-on-year growth rates for 1H18, 2018, 1Q19, and 1H19 revenue, PPOP, and net profit were 15.6%/21.2%/29.5%/26.9%, 18.2%/24.7%/35.1%/30%, 9.3%/10.8%/15.1%/11.1%, respectively. Breakdown of year-on-year performance growth in the first half of 2019: In addition to the negative contribution of provisions in the current period, scale, interest spreads, non-interest, costs, and taxes were all positive contributors. Looking closely at the changes in the contribution of various factors, the marginal contribution to performance has improved: 1. The scale is slightly wider than the growth rate in 2018, while the positive contribution of interest spreads has increased. 2. The non-interest contribution changed from negative to positive compared to 2018. 3. The tax savings effect has been further enhanced. The weakening of marginal contributions is: 1. Increased provision and planning efforts, increased negative contribution of provisions 2, and weakening of positive cost contributions. Investment suggestions: Company 2019E, 2020E PB 1.40X/1.27X; PE 13.23X/11.91 X (urban commercial bank PB 0.97X/0.87X; PE 8.13X/7.18X), the company is the first listed commercial bank in northwest China. The equity structure is diversified and balanced. Revenue growth continues to pick up under continuous optimization of the capital and burden structure. The increase in asset-side high-yield loans has led to an increase in yield. At the same time, the absolute high share of debt-side deposits consolidates the advantages of the company's low interest rate, and asset quality is steadily improving.。 Coverage for the first time, giving an increase in holdings rating, and recommended attention. Risk warning: The economic downturn has exceeded expectations, and the company's business has progressed less than expected.