HZBank(SH:600926)2024-10-22 06:07Investment Rating - The report maintains a "Buy" rating for Hangzhou Bank [2][7]. Core Views - Hangzhou Bank's performance growth remains in the top tier of the industry, driven by provisioning support, but revenue growth is under pressure, leading to a slowdown in profit growth [3][7]. - The bank's asset quality is strong, with a non-performing loan (NPL) ratio stable at 0.76% and a provisioning coverage ratio of 543% [4][7]. - The bank's net profit for the first nine months of 2024 increased by 18.6% year-on-year, while revenue grew by 3.9% [2][3]. Summary by Sections Financial Performance - For the first nine months of 2024, Hangzhou Bank achieved revenue of 28.5 billion yuan, a year-on-year increase of 3.9%, and a net profit attributable to shareholders of 13.9 billion yuan, up 18.6% [2][3]. - The bank's interest income grew by 3.9% year-on-year, with a significant quarterly increase of 11% in the third quarter [3][5]. Asset Quality - The NPL ratio remained stable at 0.76%, with a provisioning coverage ratio of 543%, indicating strong asset quality [4][7]. - The estimated annualized NPL generation rate for the first nine months of 2024 was only 0.22%, reflecting low levels of new non-performing loans [7][13]. Capital and Dividends - The core Tier 1 capital adequacy ratio was reported at 8.76%, which is still low compared to industry standards, necessitating internal capital replenishment [4][7]. - The board approved a mid-term dividend plan, proposing a distribution of 0.37 yuan per share, totaling 2.2 billion yuan, which is 22.6% of the net profit attributable to ordinary shareholders for the first half of 2024 [4][7]. Loan Growth - Loan growth remained robust, with a year-on-year increase of 15.9% in the third quarter of 2024, primarily driven by corporate loans [5][9]. - The bank's loan structure shows that corporate loans contributed over 80% of the new loans in the first nine months of 2024 [5][9].