HZBank(SH:600926) Haitong Securities·2024-10-23 00:10Investment Rating - The investment rating for Hangzhou Bank is "Outperform the Market" and is maintained [1][3]. Core Insights - Hangzhou Bank's profitability remains stable, with a non-performing loan ratio steady at 0.76% and a net interest margin stabilizing and recovering. The bank maintains a high level of corporate credit lending [3]. - In Q3 2024, the bank's revenue increased by 0.9% year-on-year, and net profit attributable to shareholders rose by 15.1%. For the first three quarters of 2024, revenue grew by 3.9%, and net profit increased by 18.6% [3]. - The annualized ROA for the first three quarters of 2024 increased by 0.03 percentage points to 0.72%, while the annualized ROE rose by 0.39 percentage points to 13.51% [3]. - The core Tier 1 capital adequacy ratio improved by 0.45 percentage points to 8.76% [3]. - The bank's net interest income in Q3 2024 grew by 11.04% year-on-year, with a calculated net interest margin of 1.29%, up 5 basis points from Q2 2024 [3]. - Total loans increased by 12.8% compared to the end of 2023, with corporate loans rising by 15.8% and personal loans by 7.0% [3]. - The forecast for EPS from 2024 to 2026 is 2.8, 3.26, and 3.74 yuan, with net profit growth rates of 18.38%, 15.82%, and 14.53% respectively [3]. Financial Data Summary - Revenue (in million yuan) for 2024E is projected at 36,748, with a year-on-year growth of 4.95% [5]. - Net profit (in million yuan) for 2024E is projected at 17,028, with a year-on-year growth of 18.38% [5]. - The average ROE for 2024E is expected to be 16.69% [5]. - The projected PE ratio for 2024E is 5.58, and the PB ratio is 0.84 [14].