HZBank(SH:600926) Xin Lang Cai Jing·2025-11-01 10:30Core Insights - Hangzhou Bank reported a revenue of 28.88 billion with a year-on-year growth of 1.4% and a net profit attributable to shareholders of 15.89 billion, reflecting a year-on-year increase of 14.5% [1] - The annualized weighted average return on equity was 16.91%, showing a decline of 1.11 percentage points year-on-year [1] Revenue and Profitability - Revenue, pre-provision operating profit (PPOP), and net profit attributable to shareholders grew by 1.4%, 1.6%, and 14.5% respectively, with growth rates declining by 2.5, 3.1, and 2.1 percentage points compared to the first half of 2025 [2] - Net interest income increased by 10% year-on-year, while non-interest income decreased by 14%, with the decline in non-interest income widening by 9 percentage points compared to the first half of 2025 [2][5] Asset and Loan Growth - The growth rate of interest-earning assets and loans was 13.8% and 12.7% year-on-year respectively, both showing an increase from the end of the second quarter [3] - The incremental growth of interest-earning assets was 182.1 billion, with 60.1 billion added in the third quarter, primarily driven by non-loan assets [3] Liability and Deposit Trends - The growth rate of interest-bearing liabilities and deposits was 13.2% and 14.6% year-on-year respectively, with deposits primarily contributed by personal deposits [4] - The structure of deposits showed a year-on-year growth of 10.2% for corporate deposits and 28.3% for personal deposits [4] Interest Margin and Non-Interest Income - The net interest margin (NIM) was 1.33%, slightly up by 1 basis point compared to the first half of 2025, with the yield on interest-earning assets and cost of interest-bearing liabilities at 3.13% and 1.8% respectively [5] - Non-interest income decreased by 14% to 8.79 billion, with a significant drop in net other non-interest income by 24.7% [6] Asset Quality and Provisions - The non-performing loan (NPL) ratio remained stable at 0.76%, with a provision coverage ratio above 500% [7] - The company recorded a credit impairment loss of 2.82 billion, down 38.5% year-on-year [7] Capital Adequacy - Risk-weighted assets grew by 14.4% year-on-year, with a slight increase in growth rate compared to the second quarter [8] - The core tier 1, tier 1, and total capital adequacy ratios were 9.64%, 11.82%, and 14.43% respectively, all showing a decline from the second quarter [8] Future Outlook - The company maintains a strong expansion momentum, with a projected EPS of 2.72, 3.18, and 3.71 for 2025-2027, and a current price-to-book (PB) ratio of 0.9, 0.79, and 0.69 [8]