Bank of Ningbo(SZ:002142) Changjiang Securities·2025-07-25 05:16Investment Rating - The investment rating for the company is "Buy" and is maintained [8]. Core Views - The company's revenue growth for the first half of the year is 7.9% year-on-year, with a quarterly growth of 10.3% in the second quarter. The net profit attributable to the parent company increased by 8.2% year-on-year, with a quarterly growth of 10.8% in the second quarter [2][6]. - Interest income is expected to maintain double-digit growth due to rapid loan expansion and stable net interest margin. Non-interest income is also expected to improve, benefiting from a stabilized bond market [2][11]. - The company has shown strong asset expansion, with total loans increasing by 13.4% compared to the beginning of the year. The non-performing loan ratio remains stable at 0.76%, and the provision coverage ratio has increased by 4 percentage points to 374% [2][11]. Summary by Sections Financial Performance - The company's total assets grew by 11.0% compared to the beginning of the year, with loans increasing by 13.4% and deposits by 13.1%. The second quarter saw a seasonal decline in deposits by 4.9% [11]. - The net interest margin is expected to remain resilient, with a decline of only 2 basis points in 2024 and a first-quarter net interest margin of 1.80% [11]. Asset Quality - The non-performing loan ratio has stabilized, and the provision coverage ratio has increased, indicating an improvement in asset quality. The non-performing loan generation rate is expected to stabilize in the second quarter [11][2]. Investment Outlook - The company is viewed as a typical cyclical stock, with a current valuation of 0.79 times the 2025 price-to-book ratio, suggesting potential for valuation recovery. The recent macro policy expectations and improved market sentiment support this outlook [11].