Bank of Ningbo(002142) 光大证券·2024-10-29 06:10Investment Rating - Buy (maintained) with a current price of 25.99 CNY [2] Core Views - The company's revenue and profit growth rates have improved quarter-on-quarter, supported by strong balance sheet expansion and interest income [3] - Net interest income increased by 16.9% YoY, with a 2.2 percentage point improvement compared to the first half of 2024 [3] - Non-interest income declined by 9.3% YoY, with a 3.6 percentage point widening in the decline compared to the first half of 2024 [3] - Loan growth remained robust, with loans accounting for 53.8% of interest-bearing assets, up 0.8 percentage points from the previous quarter [4] - Deposit growth contributed significantly to liability expansion, with corporate deposits growing by 16.3% YoY [5] - Net interest margin (NIM) narrowed by 2 basis points to 1.85% in Q3 2024, but liability costs have improved quarter-on-quarter [5][6] - Non-performing loan (NPL) ratio remained stable at 0.76%, with a provision coverage ratio of 404.8%, still at a high industry level [8] - Capital adequacy ratios declined slightly due to strong asset expansion, with core Tier 1 capital adequacy at 9.43% [8] Financial Performance - Revenue for the first three quarters of 2024 reached 50.75 billion CNY, up 7.4% YoY, with net profit attributable to shareholders at 20.71 billion CNY, up 7% YoY [2] - Weighted average return on equity (ROE) was 14.51%, down 1.43 percentage points YoY [2] - Net interest income grew by 16.9% YoY, while non-interest income declined by 9.3% YoY [3] - Loan growth was 19.6% YoY, with corporate loans increasing by 38 billion CNY and retail loans by 22.8 billion CNY in Q3 [4] - Deposit growth was 17.6% YoY, with corporate deposits increasing by 9.7 billion CNY and retail deposits by 11.7 billion CNY in Q3 [5] Asset Quality and Capital - NPL ratio remained stable at 0.76%, with a provision coverage ratio of 404.8%, down 15.8 percentage points from the previous quarter [8] - Core Tier 1 capital adequacy ratio declined to 9.43%, down 18 basis points from the previous quarter [8] - Risk-weighted assets grew by 19% YoY, reflecting strong asset expansion [8] Valuation and Forecast - EPS forecasts for 2024-2026 were revised down to 4.16, 4.50, and 4.90 CNY, respectively, reflecting pressure on asset yields [9] - Current price-to-book (P/B) ratios for 2024-2026 are 0.86x, 0.76x, and 0.68x, respectively [9] - The company is expected to maintain strong growth momentum in asset scale, supported by its diversified profit centers and focus on high-quality regions [9]