Bank of Ningbo(SZ:002142) Donghai Securities·2025-04-21 08:23Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company reported a revenue of 66.631 billion yuan in 2024, an increase of 8.19% year-on-year, and a net profit attributable to shareholders of 27.127 billion yuan, up 6.23% year-on-year. The total assets at year-end reached 3.13 trillion yuan, reflecting a growth of 15.25% year-on-year. The non-performing loan (NPL) ratio stood at 0.76%, unchanged quarter-on-quarter, while the NPL coverage ratio was 389.35%, down 15.45 percentage points quarter-on-quarter. The net interest margin for the year was 1.86%, a decrease of 2 basis points year-on-year [2][12]. Summary by Sections Loan Growth and Demand - In Q4 2024, corporate loan growth slowed slightly from high levels, while personal loan growth remained constrained by demand. The growth in corporate loans was affected by common industry factors, including significant debt replacement efforts and reduced lending tasks due to previous high growth. Personal loans continued to show limited growth, consistent with industry trends, primarily due to high repayment pressures from previous large loan issuances, weak credit demand, and tightened credit standards due to rising risks [3][4]. Deposit Growth - The company maintained strong deposit growth, significantly outpacing the M2 growth rate. Factors contributing to this include strong customer loyalty, improved cash flow from good export conditions, and increased fiscal efforts since May of the previous year, benefiting the company's deposit structure [3][4]. Interest Margin - The net interest margin for Q4 turned positive, with a measured value of 1.89%, an increase of approximately 8 basis points quarter-on-quarter and 4 basis points year-on-year. The asset yield was 3.84%, showing a slight decline, while the funding cost improved due to previous deposit rate cuts [4][5]. Asset Quality - The overall asset quality remained stable, with the NPL ratio at 0.76%. The personal loan NPL ratio increased slightly, reflecting broader industry trends. The company maintained a proactive approach to risk management, with significant loan write-offs in Q4, which were at a record high [12][9]. Profit Forecast and Valuation - The company adjusted its profit forecasts, expecting revenues of 70.696 billion yuan, 77.352 billion yuan, and 85.983 billion yuan for 2025, 2026, and 2027, respectively. The net profit attributable to shareholders is projected to be 28.937 billion yuan, 32.071 billion yuan, and 35.288 billion yuan for the same years. The company is expected to maintain a strong asset quality and revenue growth, supported by its solid customer base and professional management capabilities [10][12].