HZBank(SH:600926) EBSCN·2024-07-26 01:02Investment Rating - The investment rating for Hangzhou Bank is "Buy" (maintained) [2][7]. Core Insights - Hangzhou Bank reported a revenue of 19.34 billion yuan for the first half of 2024, representing a year-on-year growth of 5.4%, while the net profit attributable to shareholders reached nearly 10 billion yuan, growing by 20.1% [5][6]. - The bank's return on equity (annualized) was 19.48%, an increase of 0.82 percentage points year-on-year [5][7]. - The bank's asset quality remains stable, with a non-performing loan ratio of 0.76% and a provision coverage ratio of 545.2% [6][7]. Summary by Sections Revenue and Profitability - Revenue growth accelerated in Q2 2024, with a year-on-year increase of 7.3%, while net profit growth was 19% [6]. - The bank's revenue and net profit growth rates for the first half of 2024 were 5.4% and 20.1%, respectively, showing resilience in its fundamentals [6]. Asset and Loan Growth - As of the end of Q2 2024, total assets, loans, and non-loan assets grew by 13.8%, 16.5%, and 11.7% year-on-year, respectively [6]. - The bank's loan-to-asset ratio was 45.4%, remaining stable compared to the previous quarter [6]. Deposit and Funding - Deposit growth improved by 2.7 percentage points from the end of Q1 2024, with total deposits increasing by 38 billion yuan in Q2 [6]. - The bank's cost control on deposits is gradually showing effectiveness, with a decrease in deposit interest rates [6]. Risk Management - The non-performing loan balance was 6.85 billion yuan, reflecting a slight increase of 2.2 billion yuan from the previous quarter [6]. - Retail loan risks remain stable, with consumer loan balances showing steady growth [6]. Earnings Forecast and Valuation - The bank's earnings per share (EPS) forecasts for 2024, 2025, and 2026 are 2.93 yuan, 3.48 yuan, and 4.10 yuan, respectively [7]. - The bank's strategic focus on the Yangtze River Delta and Pearl River Delta regions supports its strong expansion capabilities [7].