HZBank(SH:600926) Dongxing Securities·2024-09-02 09:45Investment Rating - The report maintains a "Strong Buy" rating for Hangzhou Bank [9][10][23] Core Views - Hangzhou Bank's revenue and net profit for the first half of 2024 showed year-on-year growth of 5.4% and 20.1% respectively, indicating strong profitability and asset quality [2][3][10] - The bank's annualized ROE reached 19.48%, an increase of 0.82 percentage points year-on-year, with a non-performing loan ratio of 0.76% and a provision coverage ratio of 545.2% as of June [2][10] Financial Performance Summary - Revenue for the first half of 2024 was CNY 19.34 billion, with net profit reaching CNY 10.00 billion, reflecting a year-on-year increase of 5.4% and 20.1% respectively [2][10] - The bank's net interest income grew by 0.5% year-on-year, with a significant improvement in growth rate compared to the previous quarter [4] - Non-interest income saw a decline of 9.9% year-on-year, primarily due to a drop in custodial fees, while other non-interest income surged by 28.3% driven by investment gains [5][10] Asset Quality and Provisions - As of June 2024, the non-performing loan ratio stood at 0.76%, with a provision coverage ratio of 545.2%, indicating robust asset quality [10] - The report highlights a slight increase in non-performing loans in retail and corporate real estate sectors, but overall asset quality remains stable [10] Growth Projections - The report forecasts net profit growth rates of 19.1%, 16.3%, and 15.0% for 2024, 2025, and 2026 respectively, with corresponding BVPS of CNY 18.41, CNY 21.63, and CNY 25.34 [10][11]