Bank of Ningbo(SZ:002142) Changjiang Securities·2025-10-30 23:31Investment Rating - The investment rating for the company is "Buy" and is maintained [9]. Core Views - The company has shown accelerated performance with a revenue growth of 8.3% year-on-year and a net profit growth of 8.4% in the first three quarters of 2025. The net interest income increased by 11.8%, driven by strong scale growth and stable interest margins. Non-interest income growth was modest at 0.3%, primarily affected by market fluctuations, while fee income surged by 29.3%, indicating significant growth in wealth management services [2][6][12]. Summary by Relevant Sections Performance - The company's revenue growth accelerated to 9.2% in Q3, up from 7.9% in the first half of the year. The net profit growth also improved to 8.7% in Q3 from 8.2% in the first half. The non-performing loan (NPL) ratio remained stable at 0.76% by the end of Q3, with a provision coverage ratio increasing by 2 percentage points to 376% [2][6][12]. Scale - Total assets grew by 14.5% compared to the beginning of the year, with loans increasing by 16.3%. Corporate loans saw a significant rise of 30.8%, while retail loans decreased by 4.0%, reflecting weak demand and tightened risk controls [12][27]. Interest Margin - The net interest margin for the first three quarters was 1.76%, stable compared to the first half of the year. The cost of liabilities continued to improve, with the cost of funds decreasing by 5 basis points to 1.74% [12][27]. Non-Interest Income - Non-interest income growth was modest at 0.3%, with fee income rising sharply by 29.3%, benefiting from a recovery in capital markets. However, other non-interest income declined by 9.0% due to market adjustments [12][27]. Asset Quality - The non-performing loan generation rate improved significantly, with the cumulative non-performing loan generation rate for the first three quarters at 0.93%, down 7 basis points from the first half. The single-quarter non-performing loan generation rate fell to 0.70% [12][27]. Investment Recommendation - The report suggests that the turning point for non-performing loan generation has been established, with expectations for improved retail risk pressures. The current price-to-book (PB) ratio is 0.82x, and the price-to-earnings (PE) ratio is 6.4x, indicating potential for upward valuation adjustments [12][27].