Bank of Ningbo(002142) 长江证券·2024-09-02 07:11Investment Rating - The report maintains a "Buy" rating for Ningbo Bank (002142 SZ) [4] Core Views - Ningbo Bank's H1 2024 revenue growth accelerated to 7 1% (Q1 5 8%) with net profit attributable to shareholders growing 5 4% (Q1 6 3%) [2] - Net interest income grew 14 7% YoY, leading the industry, driven by strong net interest margin resilience and rapid expansion of interest-earning assets [2][5] - Non-interest income declined 5 7% YoY, mainly due to a 24 9% drop in fee income, impacted by capital market volatility and changes in investor risk appetite [5] - The NPL ratio remained stable at 0 76% in Q2 2024, with the pre-write-off NPL formation rate steady at 1 28%, better than market expectations [2][5] Business Performance - Loans grew 12 5% YoY in H1 2024, with corporate, bill, and retail loans increasing by 17 5%, 29 9%, and 3 1% respectively [5] - Deposits surged 17 6% YoY, with the proportion of demand deposits decreasing by 1 8 percentage points to 31 2% [5] - The net interest margin stood at 1 87% in H1 2024, down 3bps QoQ but only 1bp lower than the full-year 2023 level, reflecting strong resilience [5][6] Asset Quality - The NPL ratio remained stable at 0 76% in Q2 2024, with the pre-write-off NPL formation rate steady at 1 28% [5] - The provision coverage ratio declined by 11 percentage points to 421% in Q2 2024 [2] - Credit impairment provisions increased by 8 9% YoY, with loan-related provisions up 6 7% [6] Financial Projections - Full-year 2024 revenue growth is projected at 7 0%, with net profit attributable to shareholders expected to grow 6 4% [6] - The bank's valuation stands at 0 66x 2024 PB, near historical lows [6] Industry Context - The bank's net interest margin resilience and asset quality stability outperform peers, driven by optimized asset-liability structure and rapid loan expansion [5][6] - Retail loan risks have risen industry-wide, but Ningbo Bank's NPL formation rate has stabilized, reflecting better-than-expected risk management [6]