HZBank(SH:600926) GF SECURITIES·2024-08-29 06:44Investment Rating - The report maintains a "Buy" rating for Hangzhou Bank [2] Core Views - Hangzhou Bank's H1 2024 performance shows revenue, PPOP, and net profit attributable to shareholders growing by 5.4%, 5.4%, and 20.1% year-on-year, respectively. The growth rates compared to Q1 2024 changed by +1.86 percentage points, +0.89 percentage points, and -1.05 percentage points [1][9] - Key highlights include significant growth in loan and deposit volumes, with interest-earning assets increasing by 13.8% year-on-year, and loans and investment assets growing by 16.5% and 16.1%, respectively. The bank's non-performing loan ratio remains stable at 0.76% for six consecutive quarters [1][9] - The report emphasizes the narrowing net interest margin and pressure on non-interest income, with net fee and commission income declining by 9.9% year-on-year [1][9] Summary by Sections Financial Performance - H1 2024 revenue growth of 5.4% and net profit growth of 20.1% reflect strong operational performance despite some pressures [1][9] - The bank's total assets grew by 13.79% year-on-year, with loans increasing by 16.47% and deposits by 13.70% [9][12] Asset Quality - The non-performing loan ratio stands at 0.76%, with a provision coverage ratio of 545.17%, indicating strong asset quality management [1][9] - The report notes a slight increase in personal loan risks, with non-performing rates for corporate and retail loans at 0.76% each [1][9] Income Sources - Other non-interest income surged by 28.32%, primarily driven by increased investment income, which rose by 55.40% year-on-year [1][9] - The bank's net interest margin decreased to 1.42%, down 8 basis points from the previous year, influenced by macroeconomic conditions and LPR adjustments [1][9] Profitability Forecast - The forecast predicts net profit growth of 20.38% and 18.29% for 2024 and 2025, respectively, with EPS expected to be 2.80 and 3.34 CNY per share [1][9]