HZBank(600926) 银河证券·2025-05-08 11:08Investment Rating - The report maintains a "Buy" rating for Hangzhou Bank (stock code: 600926) [1] Core Views - Hangzhou Bank continues to show strong profit growth, with a 2024 revenue increase of 9.61% year-on-year and a net profit growth of 18.07% year-on-year. The bank's return on equity (ROE) stands at 16%, reflecting a 0.43 percentage point increase year-on-year [3] - The bank's asset quality remains excellent, with a non-performing loan (NPL) ratio of 0.76% and a provision coverage ratio of 530.07% as of March 2025, indicating strong risk mitigation capabilities [3] - The bank's strategy focuses on expanding its presence in the Yangtze River Delta region, with a clear plan to strengthen corporate finance and enhance retail and small micro-business services [3] Summary by Sections Financial Performance - In 2024, the bank's revenue reached approximately 38.38 billion yuan, with a projected growth rate of 9.61% for 2025 [38] - The net interest income for 2024 was approximately 24.46 billion yuan, with a year-on-year growth of 4.37% [39] - The bank's net profit attributable to shareholders for 2024 is estimated at 16.98 billion yuan, reflecting a growth rate of 18.07% [38] Asset Quality - As of the end of 2024, the bank's NPL ratio was 0.76%, with a stable level of attention loans at 0.55% [3] - The bank's retail loan risk has slightly increased, with an NPL ratio of 0.77% for retail loans [3] Growth Strategy - The bank is actively expanding in the Yangtze River Delta, leveraging its geographical advantages to enhance its market position [3] - The bank's strategic plan includes strengthening corporate finance and expanding retail and small micro-business services as key growth drivers [3] Valuation Metrics - The projected book value per share (BVPS) for 2025 is 19.54 yuan, with corresponding price-to-book (P/B) ratios of 0.76X for 2025, 0.65X for 2026, and 0.55X for 2027 [3][38]