HZBank(600926) 中泰证券·2024-10-24 01:30Investment Rating - The investment rating for Hangzhou Bank is "Buy" (maintained) [1]. Core Views - The report highlights that the net interest margin has stabilized and improved, while non-interest income growth has slowed, leading to a slight decline in revenue and net profit growth [5][11]. - The bank's asset quality remains excellent, with a non-performing loan ratio of 0.76%, and the provision coverage ratio is stable at 543.25% [11][12]. - The report projects steady growth in operating income and net profit over the next few years, with a focus on the bank's regional advantages and retail financial business growth potential [13][14]. Summary by Sections Overview of Q3 Report - The net interest income growth turned positive due to contributions from the liability side, while non-interest income growth slowed, resulting in a year-on-year revenue growth rate decline of 1.5 percentage points to 3.9% [5]. - The cumulative net profit growth rate also decreased by 1.5 percentage points to 18.6%, but overall growth remains high [5]. Net Interest Income - The net interest margin increased by 7 basis points, with net interest income rising by 7.2% quarter-on-quarter, reflecting a significant improvement from the previous quarter [8]. - The annualized net interest margin for Q3 was 1.44%, with the asset yield stable and the liability interest rate decreasing by 8 basis points to 2.10% [8]. Asset and Liability Growth and Structure - Loan issuance saw a peak and subsequent decline, while deposits continued to grow significantly [8]. - In Q3, the bank issued new loans totaling 88.3 billion, a year-on-year decrease of 22.3%, but cumulative loan issuance for the first three quarters was 1,030.6 billion, up 24.1% year-on-year [8]. - Deposits increased by 252.1 billion in Q3, maintaining a stable proportion of interest-bearing liabilities at 63.7% [8]. Asset Quality - The overall asset quality remains excellent, with a non-performing loan ratio of 0.76% and a stable provision coverage ratio [11]. - The report indicates that future non-performing loan pressures are manageable, with the proportion of special mention loans slightly increasing to 0.59% [11]. Other Financial Metrics - The report forecasts operating income and net profit growth rates for 2024E, 2025E, and 2026E, with projected P/E ratios of 5.00X, 4.33X, and 3.74X respectively [14]. - The bank's capital adequacy ratios are also projected to remain strong, supporting its growth strategy [13].