Bank of Ningbo(SZ:002142) Changjiang Securities·2025-04-11 10:43Investment Rating - The investment rating for the company is "Buy" and is maintained [9]. Core Views - The company achieved an annual revenue growth rate of 8.2% and a net profit growth rate of 6.2% for 2024. The net interest income grew by 17.3%, driven by strong balance sheet expansion and a stable recovery in interest margins. However, non-interest income decreased by 9.9%, with no significant investment income released. The year-end other comprehensive income saw a substantial increase, indicating potential future revenue sources [2][6]. Summary by Sections Performance - The company's revenue growth accelerated in Q4, with a full-year interest income growth of 17.3%, attributed to high growth in scale and relatively stable interest margins. Non-interest income decreased by 9.9%, with fee income down by 19.3% and investment income down by 6.2%. The net profit slightly decreased due to a rise in the tax rate, while the cost-to-income ratio improved and credit costs decreased, enhancing profitability [11][10]. Scale - The company experienced significant loan growth of 17.8% for the year, expected to lead the industry. The year-end corporate, bill, and retail loans grew by 24.4%, 13.6%, and 10.0%, respectively. The growth in corporate loans was primarily in leasing, wholesale, and real estate sectors, while retail loans, including mortgages and personal consumption loans, showed strong growth [11][10]. Interest Margin - The net interest margin for the year was 1.86%, showing a recovery of 1 basis point from the previous quarter and a decline of only 2 basis points year-on-year, outperforming peers. The loan yield was 4.84%, with a decrease in personal loan yields. Deposit costs improved, with an annual deposit cost rate of 1.94%, indicating a downward trend in deposit costs expected to continue into 2025 [11][10]. Asset Quality - The non-performing loan (NPL) ratio remained stable at 0.76% at year-end, with a decline in the provision coverage ratio to 389%. The annual NPL generation rate was 1.26%, with a slight increase in Q4, primarily due to retail loan pressures. The company maintained strong asset quality in corporate loans, particularly in real estate [11][10]. Investment Recommendations - The company significantly increased its dividend payout ratio to 22.8%, up 7 percentage points year-on-year, corresponding to a dividend yield of 3.8% for 2024. The strong revenue growth, high net interest income, and stable interest margins indicate a positive outlook. The company is positioned for sustainable growth, with a current valuation of 0.68x 2025 PB, maintaining a "Buy" rating [11][10].