Bank of Ningbo(SZ:002142) Changjiang Securities·2025-09-03 11:50Investment Rating - The investment rating for the company is "Buy" and is maintained [9]. Core Views - The company reported a revenue growth of 7.9% year-on-year in the first half of 2025, with a net profit growth of 8.2% [2][6]. - Interest income continued to grow significantly, driven by a substantial increase in credit scale, while non-interest income showed a positive growth trend [2][6]. - The company announced its first interim dividend for 2025, with a payout ratio of 13.4% [2][6]. Summary by Relevant Sections Financial Performance - Revenue growth was 7.9% year-on-year, with a quarterly growth of 10.3% in Q2 [6]. - Net profit increased by 8.2% year-on-year, with Q2 showing a growth of 10.8% [6]. - Interest income grew by 11.1% year-on-year, while non-interest income increased by 1.3% [6]. Asset Quality - The non-performing loan (NPL) ratio remained stable at 0.76% [2][6]. - The provision coverage ratio improved by 4 percentage points to 374% [2][6]. - The net NPL generation rate decreased to 1.00%, with Q2 showing a further decline to 0.77% [2][6]. Loan and Deposit Growth - Total loans increased by 13.4% compared to the beginning of the year, with corporate loans growing by 21.3% [2][6]. - Deposits grew by 13.1%, with a notable increase in demand deposits [2][6]. Investment and Non-Interest Income - Non-interest income growth turned positive at 1.3%, supported by a recovery in investment-related income [2][6]. - The company expects to maintain positive growth in non-interest income for the year [2][6]. Valuation and Market Outlook - The company is currently valued at a price-to-book (PB) ratio of 0.82x and a price-to-earnings (PE) ratio of 6.6x [2][6]. - The report indicates that there is potential for upward valuation, supported by improving fundamentals and market sentiment [2][6].