宁波银行：2024年三季度报告点评：信贷维持高增，费用管控较好

Investment Rating - The report maintains a "Strong Buy" rating for Ningbo Bank [7][12]. Core Views - Ningbo Bank's Q3 2024 report shows a revenue of 50.75 billion yuan (YOY +7.4%) and a net profit of 20.71 billion yuan (YOY +7.0%), with an annualized ROE of 14.51%, down 1.43 percentage points year-on-year [1][11]. - The bank's net interest income increased by 16.9% year-on-year, driven by a 19.6% increase in loans, indicating strong credit market expansion capabilities [3][12]. - The bank's cost-to-income ratio improved to 33.4%, down 3.8 percentage points year-on-year, due to effective expense management [5][12]. - Non-performing loan ratio remained low at 0.76%, with a provision coverage ratio of 404.1%, indicating strong risk mitigation capacity [6][12]. Summary by Sections Financial Performance - Q3 2024 revenue and profit growth rates improved sequentially to 8.1% and 10.2%, respectively, compared to the first half of 2024 [2][11]. - The bank's total revenue for the first three quarters was 150.75 billion yuan, with a net profit of 62.13 billion yuan [1][11]. Credit and Interest Income - The bank's loan growth was robust at 19.6%, with a yield on interest-earning assets of 4.01% in Q3, reflecting strong credit market capabilities [3][12]. - The net interest margin for the first three quarters was reported at 1.85%, showing signs of stabilization [3][12]. Non-Interest Income - Non-interest income decreased by 30.3% year-on-year, primarily due to a decline in agency business revenue, which constitutes nearly 80% of non-interest income [4][12]. - Other non-interest income components showed a slight increase of 0.3% year-on-year [4][12]. Cost Management - Effective cost control led to a 21.7% year-on-year increase in pre-provision profit for Q3, with expenses down 11% year-on-year [5][12]. Asset Quality - The non-performing loan ratio remained stable at 0.76%, with a slight increase in the ratio of loans under watch to 1.08% [6][12]. - The provision coverage ratio decreased to 404.8%, down 15.7 percentage points from the previous quarter, but the bank's risk absorption capacity remains strong [6][12].