Bank of Ningbo(SZ:002142) Huachuang Securities·2025-04-10 07:44Investment Rating - The report maintains a "Recommended" rating for Ningbo Bank, with a target price of 29.57 CNY [2][9]. Core Insights - Ningbo Bank's revenue growth accelerated to 8.2% year-on-year, with total revenue reaching 66.631 billion CNY in 2024. The net profit attributable to shareholders increased by 6.2% year-on-year to 27.13 billion CNY [2][9]. - The bank's non-performing loan (NPL) ratio remained stable at 0.76%, while the provision coverage ratio decreased by 15.5 percentage points to 389% [2][9]. - The report highlights the bank's strong performance in corporate client operations and its ability to maintain asset quality despite challenges in retail loan performance [2][9]. Financial Performance Summary - Revenue and Profitability: In 2024, total revenue was 66.631 billion CNY, with a year-on-year growth of 8.2%. The net interest income grew by 17.3%, while net fee income decreased by 19.3% [10][11]. - Loan and Deposit Growth: The bank's loan balance increased by 17.8% year-on-year, with corporate loans growing by 24.4%. Deposits also maintained a strong growth rate of 17% [10][11]. - Asset Quality: The NPL ratio was stable at 0.76%, and the provision coverage ratio was at 389%. The report notes a slight increase in the NPL ratio for retail loans, which reached 1.68% [10][11]. Future Projections - The report projects net profit growth rates of 7.2%, 10.7%, and 11.6% for 2025E, 2026E, and 2027E respectively. The target price corresponds to a price-to-book (PB) ratio of 0.90X for 2025 [9][10]. - Key financial metrics for 2025E include total revenue of 72.83 billion CNY and net profit of 29.082 billion CNY, reflecting a year-on-year growth of 9.3% and 7.2% respectively [10][11].