HZBank(SH:600926) Yin He Zheng Quan·2025-08-28 05:56Investment Rating - The report maintains a "Recommended" rating for Hangzhou Bank (stock code: 600926) [1] Core Insights - Hangzhou Bank's revenue growth is on the rise, with a 3.9% year-on-year increase in H1 2025, and a net profit growth of 16.66% year-on-year. The annualized weighted average ROE stands at 19%, slightly down by 0.48 percentage points [4] - The bank has optimized its liability costs, resulting in a net interest income increase of 9.38% year-on-year in H1 2025, with a net interest margin of 1.35%, down 6 basis points from the beginning of the year [4] - The bank's asset quality remains strong, with a non-performing loan ratio of 0.76% as of June 2025, and a provision coverage ratio of 520.89%, which is leading in the industry [4] - The completion of the conversion of convertible bonds further strengthens the bank's capital base, enhancing its operational expansion and risk resistance capabilities [4] Financial Performance Summary - In H1 2025, the bank's revenue reached approximately 35,015.54 million yuan, with a projected growth rate of 6.33% for 2023 [43] - The net profit attributable to shareholders is expected to grow to 14,383.37 million yuan in 2023, reflecting a growth rate of 23.15% [43] - The bank's core tier 1 capital adequacy ratio is reported at 9.74% as of June 2025, indicating a robust capital position [4] Loan and Deposit Growth - Total loans increased by 7.67% year-to-date, with corporate loans growing by 12.41% and retail loans slightly declining by 2.12% [4] - Deposits rose by 5.17% year-to-date, with personal deposits increasing by 10.68% [4] Non-Interest Income and Investment Performance - Non-interest income decreased by 5% year-on-year in H1 2025, while investment income grew by 23.85% year-on-year [4] - The bank's wealth management products have expanded significantly, with a total scale exceeding 500 billion yuan, up 17% from the beginning of the year [4]