HZBank(SH:600926) Dongxing Securities·2024-10-22 09:38Investment Rating - The report maintains a "Strong Buy" rating for Hangzhou Bank [10][11]. Core Views - Hangzhou Bank's net interest margin has stabilized, and its profitability continues to grow at a high rate. The bank reported a revenue of 28.49 billion yuan, a year-on-year increase of 3.9%, and a net profit attributable to shareholders of 13.87 billion yuan, a year-on-year increase of 18.6% [2][11]. - The bank's asset quality remains excellent, with a non-performing loan ratio of 0.76% and a provision coverage ratio of 543.3%, indicating strong risk absorption capacity [6][11]. Summary by Sections Financial Performance - In the first three quarters, net interest income increased by 3.9% year-on-year, with a quarter-on-quarter growth rate improvement of 3.4 percentage points. This growth is attributed to high asset scale and a temporary stabilization of the net interest margin [4]. - The bank's total assets, loans, and deposits grew by 9.6%, 12.8%, and 12.6% respectively compared to the beginning of the year, reflecting strong credit demand despite a generally weak financing environment [4]. Non-Interest Income - The bank's fee and commission income decreased by 8.1% year-on-year, while other non-interest income grew by 9.6%, although the growth rate slowed significantly in the third quarter [5]. Asset Quality - As of September, the non-performing loan ratio remained stable at 0.76%, with a slight increase in the attention loan ratio to 0.59%. The provision coverage ratio is among the highest in the industry, indicating a robust buffer against potential losses [6][11]. Future Outlook - The report forecasts a net profit growth of 19.1%, 16.3%, and 15.0% for the years 2024 to 2026, respectively, with corresponding book value per share (BVPS) expected to reach 18.41, 21.63, and 25.34 yuan [12][11].