HZBank(600926) 民生证券·2024-10-22 04:30Investment Rating - The report maintains a "Recommended" rating for Hangzhou Bank, with a closing price of 14.50 yuan on October 21, 2024, corresponding to 0.8 times the 2024 PB [2][3]. Core Views - Hangzhou Bank continues to show strong profit growth, with a year-on-year increase of 18.6% in net profit attributable to shareholders for the first three quarters of 2024, supported by a stable asset quality and a low non-performing loan ratio of 0.76% [1][2]. - The bank's net interest income growth has rebounded, and the quality of assets remains stable, indicating resilience in both corporate and personal lending [2]. - The bank's investment income has seen a year-on-year increase of 27.9%, although it has declined compared to the first half of 2024 [1]. Summary by Sections Financial Performance - For the first three quarters of 2024, Hangzhou Bank reported revenue of 28.49 billion yuan, a year-on-year increase of 3.9%, and a net profit of 13.87 billion yuan, up 18.6% year-on-year [1]. - The bank's non-performing loan ratio remained stable at 0.76%, with a provision coverage ratio of 543% [1][2]. Revenue Breakdown - The revenue growth rate has slowed compared to the first half of 2024, with net interest income increasing by 3.9%, while non-interest income decreased by 8.1% [1]. - The bank's total assets, loans, and deposits grew by 12.7%, 15.9%, and 16.3% year-on-year, respectively [1]. Future Projections - The projected earnings per share (EPS) for 2024, 2025, and 2026 are 2.89 yuan, 3.32 yuan, and 3.76 yuan, respectively [2][3]. - The bank's net interest margin (NIM) is expected to decline gradually from 1.36% in 2023 to 1.11% by 2026 [11].