Bank of Ningbo(002142) 中国银河·2024-10-30 03:11Investment Rating - The report maintains a "Recommend" rating for Ningbo Bank, citing its strong interest income performance, narrowing interest margin decline, robust deposit and loan growth, and mature risk control system [1] Core Views - Ningbo Bank achieved a 7.45% YoY increase in operating revenue to 50.753 billion yuan and a 7.02% YoY growth in net profit attributable to parent company to 20.707 billion yuan in the first nine months of 2024 [1] - The bank's interest income showed strong performance with a 16.91% YoY increase in net interest income to 35.317 billion yuan, driven by both volume and price factors [1] - Non-interest income declined by 9.34% YoY to 15.436 billion yuan, mainly due to pressure on intermediary business income and slower growth in other non-interest income [1] - The bank's asset quality remained stable with a non-performing loan ratio of 0.76%, while its provision coverage ratio stood at 404.8% [1] Financial Performance - In Q3 2024, Ningbo Bank's operating revenue grew by 8.12% YoY, and net profit attributable to parent company increased by 10.25% YoY, with a 5.73 percentage point acceleration in growth rate compared to the previous quarter [1] - The bank's annualized net interest margin was 1.85% for the first nine months of 2024, a 2 basis points decline from the first half of 2024, but the rate of decline narrowed [1] - Total loans increased by 16.2% YoY, with corporate loans growing by 23.21% and personal loans increasing by 7.65% [1] - Total deposits grew by 18.99% YoY, with corporate and personal deposits increasing by 25.49% and 19.36% respectively [1] Business Structure - Corporate loans accounted for 55.97% of total loans, up 3.18 percentage points from the end of the previous year [1] - The bank's core tier 1 capital adequacy ratio stood at 9.43%, a slight decrease of 0.21 percentage points from the end of the previous year [1] Future Outlook - The report forecasts BVPS of 30.67/34.50/38.73 yuan for 2024-2026, corresponding to PB ratios of 0.85X/0.75X/0.67X [1] - The bank is expected to maintain its leading position in profitability, leveraging its strong presence in the Yangtze River Delta region and competitive advantage in small and micro business [1]