宁波银行（002142）：利息强劲，存贷高增

Investment Rating - The investment rating for the company is "Buy" and is maintained [9]. Core Views - The company reported a revenue growth rate of 5.6% and a net profit growth rate of 5.8% for Q1 2025, with net interest income increasing by 11.6%. Non-interest income decreased by 5.8%, primarily due to a 1.3% decline in net fee income. The decline in net profit growth was mainly due to an increase in credit costs, while a reduction in income tax expenses and a decrease in the cost-to-income ratio contributed positively, resulting in a PPOP growth rate of 9.7% [2][6][11]. - The company experienced significant growth in loans and deposits, with loans increasing by 11.1% and deposits by 18.9% compared to the beginning of the period. The non-performing loan ratio remained stable at 0.76%, while the provision coverage ratio decreased by 19 percentage points to 371% [2][6][11]. - The net interest margin stood at 1.80%, down 6 basis points from the previous year, with the yield on interest-earning assets declining by 31 basis points to 3.66%. The cost of interest-bearing liabilities decreased by 22 basis points to 1.84% [11]. Summary by Sections Performance - The company's profitability remains robust, with net interest income maintaining a high growth rate of 11.6%. The decline in non-interest income is expected to improve as previous fee reductions in wealth management gradually dissipate. The net profit growth deceleration is attributed to rising credit costs, but the overall performance remains strong with a PPOP growth of 9.7% [11]. Scale - The total assets grew by 8.7% compared to the beginning of the year, with loans increasing by 11.1% and deposits by 18.9%. The growth in corporate and bill loans was particularly strong, while retail loan demand showed signs of weakness [11]. Interest Margin - The company maintains a clear advantage in absolute levels of net interest margin, although it has seen a slight decline. The cost of liabilities is expected to continue decreasing, which may alleviate some pressure on the net interest margin [11]. Non-Interest Income - The pressure on non-interest income is expected to improve, with a smaller decline in fee income. Investment income has been cautious, and the company has not significantly released investment gains to boost revenue [11]. Asset Quality - The non-performing loan ratio remains low, and the company is closely monitoring retail risk. The annualized net non-performing loan generation rate for Q1 2025 was 1.14%, showing a decrease compared to the previous year [11]. Investment Recommendation - The strong growth in net interest income and the expectation of improving retail risk conditions support the "Buy" rating. The current valuation is at 0.70x 2025 PB, indicating no significant premium compared to peers, with potential for upward valuation adjustments if retail asset quality improves [11].