HZBank(SH:600926) ZHONGTAI SECURITIES·2025-04-03 13:40Investment Rating - The report maintains an "Accumulate" rating for Hangzhou Bank [2][6][12] Core Views - Hangzhou Bank's revenue in Q1 2025 grew by 2.2% year-on-year, although the growth rate decreased by 7.4 percentage points compared to the end of the previous year. Despite challenges such as a slowdown in net interest income growth and fluctuations in the bond market affecting non-interest income, the company managed to maintain positive revenue growth [6][7] - The bank's asset quality remains strong, with a non-performing loan ratio of 0.76%, stable compared to the end of the previous year. The provision coverage ratio decreased to 530.07%, but overall, the asset quality is still considered excellent [9][10] - The bank's loan balance increased by 57.7 billion yuan in Q1 2025, with a year-on-year growth of 14.3%. Deposits also saw a significant increase, growing by 76.22 billion yuan in the same period, with a year-on-year growth rate of 21.1% [9][10] Summary by Sections Financial Performance - Revenue for 2022 was 32,927 million yuan, with projections of 35,010 million yuan for 2023, 38,379 million yuan for 2024, 41,900 million yuan for 2025, and 45,665 million yuan for 2026. The year-on-year growth rates are expected to be 12.2%, 6.3%, 9.6%, 9.2%, and 9.0% respectively [2][12] - The net profit attributable to the parent company was 11,679 million yuan in 2022, projected to grow to 14,383 million yuan in 2023, 16,982 million yuan in 2024, 19,643 million yuan in 2025, and 22,651 million yuan in 2026, with year-on-year growth rates of 26.1%, 23.2%, 18.1%, 15.7%, and 15.3% respectively [2][12] Asset Quality - The non-performing loan ratio for Q1 2025 is 0.76%, remaining stable compared to the previous year. The provision coverage ratio is at 530.07%, indicating a strong buffer against potential loan losses [10][11] - The bank's loan-to-asset ratio increased by 0.4 percentage points to 44.8% in Q1 2025, reflecting a solid lending position [9] Market Position and Strategy - Hangzhou Bank has a significant regional advantage, with a strong presence in Zhejiang Province and strategic branches in developed economic zones such as the Yangtze River Delta and Pearl River Delta, which enhances its growth potential [6][12] - The bank's retail financial services are expected to grow, driven by consumer credit and wealth management initiatives [6][12]