Bank of Ningbo(002142) 财通证券·2024-10-29 14:23Investment Rating - The investment rating for the company is "Buy" (maintained) [1][22][23] Core Views - The company has shown strong growth in interest income, with a notable increase in revenue and net profit for the first three quarters of 2024, achieving revenue of 50.753 billion yuan, up 7.4% year-on-year, and a net profit of 20.707 billion yuan, up 7.0% year-on-year [2][11] - The bank's interest income growth is impressive, driven by an increase in interest-earning assets and an improved asset-liability structure, while non-interest income remains under pressure due to market fluctuations [3][11] - The bank's management has effectively optimized costs and expenses, contributing positively to performance [3][11] - The bank's loan and deposit growth remains robust, with total loans reaching 1.4557 trillion yuan, up 19.6% year-on-year, and total deposits at 1.8638 trillion yuan, up 17.6% year-on-year [4][15] Summary by Sections Interest Income Growth and Cost Optimization - The bank's interest income has increased by 16.9%, supported by a 15.1 percentage point contribution from the growth of interest-earning assets [3][11] - Non-interest income has been pressured, with a decline in agency income impacting overall performance [3][11] - Cost management has improved, with a 6.2 percentage point contribution to performance from effective expense control [3][11] Corporate Lending and Deposit Growth - The bank's total loans and deposits have shown strong growth, with corporate loans continuing to support credit expansion [4][15] - The bank's deposit growth strategy includes enhancing financial technology capabilities and wealth management services [15][18] Structural Factors Supporting Net Interest Margin - The net interest margin for the first three quarters of 2024 is 1.85%, with a slight decrease from the first half of the year [4][18] - The bank's asset yield has improved due to a favorable shift in the asset structure, while the cost of interest-bearing liabilities has shown slight rigidity [4][18] Asset Quality and Non-Performing Loans - The non-performing loan ratio remains stable at 0.76%, with a coverage ratio of 405%, indicating strong risk mitigation capabilities [4][19][21] - The bank has increased its efforts in managing non-performing loans, maintaining a solid asset quality profile [19][21] Investment Recommendations - The bank is expected to achieve a net profit growth of 7.3%, 9.2%, and 9.7% for 2024-2026, with corresponding price-to-book ratios of 0.86, 0.76, and 0.68 [5][22][23]