HZBank(SH:600926) Western Securities·2025-10-31 11:01Investment Rating - The investment rating for Hangzhou Bank is "Buy" [6][11] Core Views - Hangzhou Bank reported a revenue of 28.9 billion yuan for Q1-Q3 2025, a year-on-year increase of 1.35%, and a net profit attributable to shareholders of 15.9 billion yuan, up 14.53% year-on-year [1][6] - The non-performing loan ratio at the end of Q3 2025 was 0.76%, unchanged from the end of Q2, with a provision coverage ratio of 513.64%, which decreased by 7.3 percentage points quarter-on-quarter [1][3] - The bank's performance is supported by a narrowing decline in interest margins and a significant increase in credit scale, leading to a sustained recovery in net interest income growth [1][3] Financial Performance - For Q1-Q3 2025, net interest income grew by 9.96% year-on-year, while non-interest income decreased by 24.74% [1][2] - Total assets and total loans grew by 13.76% and 12.68% year-on-year, respectively, with corporate loans increasing by 19.6 billion yuan in Q3 [2][3] - The bank's return on equity (ROE) for the first three quarters was 16.91%, outperforming its peers [3] Asset Quality - The non-performing loan ratio has remained stable at 0.76% for 11 consecutive quarters, indicating strong asset quality [3] - The provision coverage ratio, despite a slight decrease, remains above 500%, suggesting adequate provisions to smooth future profit fluctuations [3] Future Profit Growth - The projected profit growth rates for Hangzhou Bank are 14.13%, 11.14%, and 9.77% for 2025, 2026, and 2027, respectively [3][4]