HZBank(600926) 长江证券·2025-04-14 08:45Investment Rating - The investment rating for Hangzhou Bank is "Buy" and is maintained [9]. Core Views - Hangzhou Bank achieved a revenue growth rate of 9.6% for the full year 2024, with a significant quarterly growth of 30% in Q4. The net profit attributable to shareholders increased by 18.1% year-on-year [2][6]. - The bank's return on equity (ROE) reached 16.0%, up by 0.5 percentage points year-on-year. The dividend payout ratio increased by 2 percentage points to 24.5%, leading to a substantial 25% year-on-year growth in dividends per share (DPS) to CNY 0.65 [2][14]. - The year-end loan balance grew by 16.2% compared to the beginning of the year, while deposits exceeded expectations with a growth of 22% [2][6]. Summary by Sections Revenue and Profitability - The full-year interest income grew by 4.4%, driven by stable interest margins and scale expansion. Non-interest income surged by 20.2%, with Q4 investment income contributing significantly [14][32]. - The net interest margin for the year was 1.41%, stabilizing in Q4 due to improved funding costs [16][20]. Asset Quality - The non-performing loan (NPL) ratio remained stable at 0.76%, with a provision coverage ratio of 541%, indicating strong risk mitigation capabilities [22][31]. - The bank's retail loan quality showed less volatility compared to the industry, with a slight increase in personal loan NPLs [22][31]. Growth Outlook - For Q1 2025, the bank anticipates a revenue growth of 2.2% and a net profit growth of 17.3%, maintaining a leading position in the industry. Loan and deposit growth are expected to be 6.2% and 6.0%, respectively, with an overall credit growth forecast of over 10% for the year [31][32]. Investment Recommendation - The bank demonstrates sustainable growth potential with an increased dividend payout and high DPS growth. The current valuation is low at 0.74x 2025 PB and 4.9x 2025 PE, presenting a buying opportunity [32].