HZBank(SH:600926) EBSCN·2026-01-25 10:49Investment Rating - The report maintains a "Buy" rating for Hangzhou Bank (600926.SH) with a current price of 15.28 CNY [1] Core Insights - Hangzhou Bank reported a revenue of approximately 38.8 billion CNY for 2025, reflecting a year-on-year growth of 1.1%, while the net profit attributable to shareholders reached 19.03 billion CNY, up 12.1% year-on-year [4][5] - The bank's strategic planning for 2021-2025 has been successfully concluded, with a focus on maintaining double-digit profit growth [5] - The bank's net interest income increased by 12.8% year-on-year, supported by a gradual increase in loan growth in the second half of the year [5][6] - Non-interest income, however, saw a decline of 19.5% year-on-year, primarily due to a high base effect from the previous year [5] Financial Performance Summary - As of the end of 2025, total assets grew by 12% year-on-year, with loans and non-loan assets increasing by 14.3% and 10.1% respectively [6][7] - The loan-to-asset ratio improved to 45.3%, up 0.9 percentage points from the beginning of the year, indicating a strong focus on key sectors such as manufacturing and technology [6] - The bank's deposit growth remained robust, with total liabilities increasing by 11.4% year-on-year and deposits accounting for 65.4% of total liabilities [7] - The non-performing loan ratio remained stable at 0.76%, with a provision coverage ratio exceeding 500% [7] Profitability and Valuation - The report forecasts earnings per share (EPS) of 2.72 CNY for 2025, with projected EPS growth of 16.3% in 2026 and 16.8% in 2027 [8][10] - The price-to-book (P/B) ratios for 2025-2027 are estimated at 0.88, 0.77, and 0.67 respectively, indicating a favorable valuation outlook [8][10]