Bank of Ningbo(SZ:002142) Donghai Securities·2025-09-12 08:22Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company reported a 7.91% year-on-year increase in operating revenue for the first half of 2025, reaching 37.16 billion yuan, and an 8.23% increase in net profit attributable to ordinary shareholders, amounting to 14.77 billion yuan [2] - As of June 30, 2025, the company's total assets stood at 3.47 trillion yuan, reflecting a 14.39% year-on-year growth, with a non-performing loan ratio of 0.76% (unchanged quarter-on-quarter) and a non-performing loan provision coverage ratio of 374.16% (up 3.62 percentage points quarter-on-quarter) [2] - The net interest margin for Q2 was 1.72%, down 11.98 basis points year-on-year [2] Summary by Sections Loan and Deposit Performance - The company experienced a seasonal decline in loan issuance in Q2, but maintained a significant advantage over the industry. Corporate loans, particularly through bill discounting, showed strong growth, reflecting good regional economic demand and ample project reserves [5] - Personal loans continued to face weak demand, with total scale decreasing compared to the end of Q1, attributed to tighter credit policies due to rising risks [5] - The company’s deposit scale saw a seasonal decline, but the year-on-year growth rate remained significantly higher than the M2 growth rate due to a solid foundation from Q1's deposit gathering [5] Interest Margin and Investment Income - The interest margin continued to narrow under repricing effects, with Q2's net interest margin at 1.72%. The asset yield was measured at 3.44%, reflecting a decrease due to lower LPR and a higher proportion of low-yield bonds in the investment portfolio [5] - The company’s non-interest income improved in Q2, indicating a recovery in capital markets and a positive effect from the easing of fee reduction policies [5] Asset Quality and Risk Management - The overall non-performing loan ratio remained stable at 0.76% as of the end of Q2, with a slight increase in personal loan non-performing rates due to a contraction in the loan base [5] - The company adopted a prudent approach to impairment provisioning, with a decrease in the provision for loan impairment losses compared to the peak in Q1, reflecting a cautious stance amid rising risks in personal loans [6] Earnings Forecast and Investment Recommendations - The company’s loan scale expansion exceeded expectations, with improved investment income and non-interest income. The earnings forecast for 2025-2027 has been adjusted upwards, with expected operating revenues of 71.56 billion, 77.41 billion, and 86.29 billion yuan respectively [6] - The forecasted net profit attributable to the parent company for the same period is 29.53 billion, 32.47 billion, and 36.80 billion yuan respectively, indicating a robust growth outlook [6]