Bank of Ningbo(SZ:002142) Huachuang Securities·2024-08-29 07:12Investment Rating - The report maintains a "Recommend" rating for Ningbo Bank, with a target price of 26.54 CNY, compared to the current price of 20.50 CNY [2][9]. Core Insights - Ningbo Bank's revenue growth accelerated to 344.37 billion CNY in the first half of 2024, reflecting a year-on-year increase of 7.13%, while net profit attributable to shareholders reached 136.49 billion CNY, up 5.42% year-on-year [2][3]. - The net interest margin for the first half of 2024 was 1.87%, showing a marginal decline from the previous quarter [2][3]. - The bank's asset quality remains strong, with a non-performing loan ratio of 0.76% and a provision coverage ratio of 420.55% [3]. Summary by Sections Revenue and Profitability - Revenue growth was supported by a 14.75% year-on-year increase in net interest income, while net fee income faced pressure, declining by 24.90% [3]. - The bank's net interest income for Q2 was 116.52 billion CNY, showing a 1.3% quarter-on-quarter increase [3]. - The average interest-earning asset yield decreased to 4.05%, down 12 basis points year-on-year [3]. Asset Quality - The non-performing loan ratio remained stable at 0.76%, with a provision coverage ratio of 420.55% [3]. - Retail loan non-performing ratio increased to 1.67%, reflecting a 17 basis points rise since the beginning of the year [3]. Loan and Deposit Growth - Loan growth in Q2 was 20.6% year-on-year, with new loans amounting to 472 billion CNY, although retail loan growth was relatively weak [3]. - Deposits increased by 224 billion CNY in Q2, representing an 18.7% year-on-year growth [3]. Future Outlook - The report adjusts profit forecasts for Ningbo Bank, projecting net profit growth rates of 5.9%, 9.8%, and 10.7% for 2024, 2025, and 2026, respectively [9]. - The current stock price corresponds to a 2024E price-to-book ratio of 0.70X, with a target price set at a 2024E price-to-book ratio of 0.90X [9].