杭州银行：业绩增速靓丽，扩表维持强劲

Investment Rating - The investment rating for the company is maintained as "Buy" with a target price of RMB 17.20 [11]. Core Views - The company reported a revenue growth of 9.6% and a net profit growth of 18.1% for 2024, indicating strong growth potential and surpassing expectations [1]. - Non-interest income has significantly contributed to revenue growth, supported by a decline in the 10-year treasury yield, which has enhanced investment returns [2]. - The company's return on equity (ROE) for 2024 is projected at 16.00%, reflecting improved profitability and a strong dividend growth potential with an estimated dividend yield of 4.34% [3]. - Asset quality remains strong, with a non-performing loan ratio of 0.76% and a provision coverage ratio of 541% as of the end of 2024 [4]. - The target price for 2025 is set at a price-to-book (PB) ratio of 0.85, with projected net profits for 2024-2026 at RMB 170 billion, RMB 196 billion, and RMB 227 billion respectively [5]. Summary by Sections Financial Performance - For 2024, the company expects revenue of RMB 38,381 million, a growth rate of 9.61%, and a net profit of RMB 16,983 million, with an 18.08% increase [15]. - The total assets, loans, and deposits are projected to grow by 14.7%, 16.2%, and 21.7% respectively by the end of 2024 [2]. Profitability Metrics - The company’s ROE is forecasted to be 14.37% in 2024, with an EPS of RMB 2.81 [15]. - The estimated dividend per share for 2024 is RMB 0.63, leading to a dividend yield of 4.34% [15]. Asset Quality - The non-performing loan ratio is expected to remain stable at 0.76% through 2025, with a provision coverage ratio of 541% [4]. - The overdue loan to non-performing loan ratio is 72.74%, indicating strong asset quality management [4]. Valuation - The projected book value per share (BVPS) for 2025 is RMB 20.24, corresponding to a PB ratio of 0.72 [5]. - The average PB ratio for comparable companies is 0.65, suggesting that the company may enjoy a valuation premium due to its strong profitability [5].