Bank of Ningbo(SZ:002142) Guotou Securities·2025-10-27 15:36Investment Rating - The investment rating for Ningbo Bank is maintained at Buy-A with a 6-month target price of 35.17 CNY [5][12]. Core Insights - Ningbo Bank's Q3 2025 results show a year-on-year revenue growth of 8.32%, with a pre-provision profit increase of 12.88% and a net profit growth of 8.39%, indicating a slight recovery in performance compared to the mid-year report [1]. - The growth in net profit is primarily driven by the expansion of interest-earning assets and a reduction in costs, although increased provisioning has negatively impacted performance [1][10]. - The bank's asset quality remains stable, with a non-performing loan generation rate of 0.86%, down 30 basis points year-on-year, reflecting a proactive approach to risk management [10]. Summary by Sections Financial Performance - In Q3 2025, Ningbo Bank's average daily interest-earning assets grew by 16% year-on-year, although the growth rate slightly decreased compared to Q2 [1][16]. - Total assets increased by 108.1 billion CNY year-on-year, with a focus on bond asset allocation, while new loan issuance saw a minor decline [1][17]. - The bank's net interest margin improved by 4 basis points quarter-on-quarter to 1.76%, despite a year-on-year decline of 4 basis points [2][3]. Asset and Liability Management - Total liabilities increased by 100.1 billion CNY year-on-year, with a notable rise in interbank liabilities, while deposits have seen a net decrease over the past two quarters [2][3]. - The cost of interest-bearing liabilities decreased by 10 basis points, benefiting from the repricing of high-cost deposits [3][26]. Non-Interest Income and Cost Management - Non-interest income decreased by 2.6% year-on-year, with a significant drop in other non-interest income due to bond market fluctuations [9]. - The cost-to-income ratio improved to 31.3%, down 3.5 percentage points year-on-year, indicating effective cost control measures [9][27]. Future Outlook - The bank is expected to maintain a revenue growth rate of 7.74% and a net profit growth rate of 7.10% for 2025, reflecting a stable outlook for its financial performance [12][30]. - The balance between asset expansion and risk control is anticipated to support stable performance and provisioning levels in the future [11].