宁波银行2024年中报点评：逆风前行

Investment Rating - The investment rating for the company is "Buy - A" with a target price of 26 CNY for the next six months [3]. Core Views - The company's performance in the first half of 2024 shows a revenue growth rate of 7.13%, with a pre-provision profit growth of 10.12% and a net profit growth of 5.42%, indicating stable performance in line with expectations [1][9]. - The growth in net profit in the second quarter was primarily driven by asset expansion and a decrease in the cost-to-income ratio, while non-interest income growth slowed down and tax expenses increased, which were the main detractors from performance [1][9]. - The company has maintained a strong asset expansion, with a year-on-year growth of 18.43% in interest-earning assets in the second quarter, reflecting its leading position in the banking sector [1][9]. Summary by Sections Financial Performance - In the second quarter, the company's net interest margin was 1.85%, showing a slight year-on-year decline of 1 basis point, which is better than peers [2][7]. - The average yield on interest-earning assets decreased by 11 basis points to 3.99%, influenced by the decline in LPR and insufficient effective credit demand [2][7]. - Non-interest income decreased by 6.9% year-on-year, with a significant drop in net commission income by 27.1%, primarily due to lower insurance agency fees and a decline in wealth management-related income [7][9]. Asset Quality - The non-performing loan (NPL) ratio stood at 0.76% at the end of the first quarter, with a notable increase in retail credit risk, as the retail NPL ratio rose to 1.67% [7][9]. - The annualized NPL generation rate for the first half of the year was 1.2%, up 38 basis points year-on-year, indicating a high level of NPL generation [8][9]. - The provision coverage ratio decreased to 420.55%, reflecting a decline in the provisioning ratio [8][9]. Future Outlook - The company is expected to achieve a revenue growth rate of 6.49% and a net profit growth rate of 4.77% for 2024, supported by a significant increase in reclassified other comprehensive income [9][10]. - The report suggests that the valuation of the bank has reached historical lows, indicating that a more optimistic outlook may be warranted moving forward [9].