HZBank(SH:600926)2025-02-06 14:46Investment Rating - The report maintains a "Buy" rating for Hangzhou Bank [7][8]. Core Views - Hangzhou Bank's revenue growth accelerated, achieving a 9.6% year-on-year increase in 2024, with a notable 30% growth in Q4 2024. This growth is attributed to both non-interest income support and a low base from the previous year [7][8]. - The bank's net profit attributable to shareholders reached 17 billion yuan in 2024, reflecting an 18.1% year-on-year increase, supported by improved revenue and lower provisioning [7][8]. - The bank's asset quality remains strong, with a non-performing loan (NPL) ratio stable at 0.76% and a provision coverage ratio of 541%, indicating a solid foundation for sustainable performance [7][8]. Financial Data and Earnings Forecast - For 2024, Hangzhou Bank reported total revenue of 38.4 billion yuan, with a year-on-year growth rate of 9.6%. The net profit attributable to shareholders was 17 billion yuan, up 18.1% from the previous year [5][6][10]. - The bank's total loans increased by 16.2% year-on-year, with new loans amounting to 130 billion yuan in 2024, which is 25.5 billion yuan more than the previous year [7][8]. - The forecast for net profit growth is adjusted to 18.1% for 2024, followed by 13.2% and 13.4% for 2025 and 2026, respectively [7][8][10]. Key Financial Ratios - The bank's return on equity (ROE) is projected to be 16.3% in 2024, with a slight decline expected in subsequent years [6][10]. - The net interest margin (NIM) is forecasted to decrease to 1.4% in 2024, reflecting ongoing pressure on interest rates [10]. - The cost-to-income ratio is expected to improve to 28.1% in 2024, indicating better operational efficiency [10]. Market Data - As of February 5, 2025, Hangzhou Bank's closing price was 14.58 yuan, with a market capitalization of approximately 80.9 billion yuan [2][5]. - The bank's price-to-book (PB) ratio is currently at 0.71, suggesting it is trading below its book value [7][8].