HZBank(SH:600926) Zheng Quan Zhi Xing·2025-06-06 10:37Core Viewpoint - The credit rating of Hangzhou Bank Co., Ltd. is maintained at AAA with a stable outlook, reflecting its importance in the national financial system and strong government support [2][5][7]. Company Overview - Hangzhou Bank has a significant asset scale, ranking among the top city commercial banks in China, with total assets projected to reach 21,123.56 billion yuan by 2024 [5][11]. - The bank's total capital is expected to increase to 1,360.48 billion yuan by 2024, indicating a solid capital base [5][11]. Financial Performance - The bank's net profit is projected to grow from 116.79 billion yuan in 2022 to 169.83 billion yuan in 2024, reflecting a compound annual growth rate of approximately 18.07% [5][11][12]. - Net operating income is expected to rise from 329.32 billion yuan in 2022 to 383.81 billion yuan in 2024, showing a growth trend [5][12]. - The bank's non-performing loan (NPL) balance is anticipated to increase from 54.20 billion yuan in 2022 to 71.14 billion yuan in 2024, with the NPL ratio remaining stable at around 0.76% [5][11][20]. Asset Quality - The bank has maintained a low NPL ratio, with a focus on improving asset quality through increased efforts in the recovery and disposal of non-performing assets [5][11][20]. - As of 2024, the bank's NPL coverage ratio is expected to remain high, although it may decline slightly due to the increase in NPLs [5][11][20]. Economic Environment - The economic strength of Zhejiang Province, where Hangzhou Bank operates, is robust, with a GDP growth rate projected at 5.5% for 2024 [8][10][13]. - The province's active private economy and continuous optimization of industrial structure provide a favorable environment for the bank's growth [8][10][13]. Industry Context - The banking sector is experiencing a recovery in financial fundamentals, although challenges such as narrowing interest margins and asset quality pressures for small and medium-sized banks remain [8][10]. - Regulatory support for high-quality financial development is expected to enhance credit allocation and optimize asset structures within the banking industry [8][10].