杭州银行：扩表强度高，盈利增速稳-20250429

Investment Rating - The report maintains a "Buy" rating for Hangzhou Bank (600926.SH) with a current price of 14.69 CNY [1]. Core Views - Hangzhou Bank's Q1 2025 report shows strong revenue growth and profitability, with operating income of 9.98 billion CNY, a year-on-year increase of 2.2%, and net profit attributable to shareholders of 6.02 billion CNY, up 17.3% year-on-year [3][4]. - The bank's annualized weighted average return on equity (ROE) stands at 20.6%, an increase of 0.64 percentage points year-on-year [3]. Summary by Sections Financial Performance - Revenue, pre-provision profit, and net profit growth rates for Q1 2025 are 2.2%, 3%, and 17.3% respectively, showing a decline from 2024 by 7.4, 6.5, and 0.8 percentage points [4]. - Net interest income and non-interest income growth rates are 6.8% and -5.4% respectively, with changes from 2024 of +2.4 and -25.6 percentage points [4]. Credit and Deposit Growth - As of Q1 2025, the growth rates for interest-earning assets and loans are 15.9% and 14.3% respectively, with loan growth slightly decreasing compared to the end of the previous year [5]. - The bank's total deposits increased by 98 billion CNY in Q1, with a year-on-year growth rate of 21.1% [6]. Interest Margin and Non-Interest Income - The net interest margin for Q1 2025 is 1.32%, a decrease of 6 basis points from 2024 [7]. - Non-interest income decreased by 5.4% year-on-year to 3.48 billion CNY, primarily due to a decline in net other non-interest income [8]. Asset Quality and Capital Adequacy - The non-performing loan (NPL) ratio remains low at 0.76%, with a provision coverage ratio of 530.1% [9]. - Capital adequacy ratios as of Q1 2025 are 9.01% for core tier 1, 11.34% for tier 1, and 14.05% for total capital, showing a stable increase [9]. Profit Forecast and Valuation - The report maintains net profit forecasts for 2025-2027, with slight adjustments to earnings per share (EPS) estimates due to potential dilution from convertible bonds [10]. - The current stock price corresponds to price-to-book (PB) ratios of 0.75, 0.65, and 0.56 for 2025-2027 [10].