HZBank(SH:600926) Guohai Securities·2026-01-27 12:35Investment Rating - The investment rating for Hangzhou Bank (600926) is maintained at "Buy" [1][6]. Core Insights - The company is expected to achieve a revenue growth of 1.09% year-on-year and a net profit attributable to shareholders growth of 12.05% in 2025. The increase in non-interest income and a significant reduction in overdue loans are highlighted as key factors [6]. - The net interest income for 2025 is projected to be CNY 27.594 billion, reflecting a year-on-year increase of 12.83%, indicating a stable net interest margin [6]. - The proportion of non-interest income has risen to 11%, with net commission income expected to reach CNY 4.207 billion, a growth of 13.10% year-on-year [6]. - The overdue loan ratio is significantly reduced, remaining stable at 0.76% as of the end of 2025, with a notable decrease in the ratio of overdue loans to non-performing loans [6]. Summary by Sections Financial Performance - Revenue for 2025 is projected at CNY 38.798 billion, with a growth rate of 1.09%. The net profit attributable to shareholders is expected to be CNY 19.029 billion, with a growth rate of 12.05% [8]. - Earnings per share (EPS) is forecasted to be CNY 2.53 for 2025, with a projected P/E ratio of 6.16x [9]. Asset Quality - The non-performing loan ratio is stable at 0.76%, with a significant reduction in overdue loans, which are expected to be only 0.42% of total loans by the end of 2025 [6][8]. - The provision coverage ratio is projected to be 541.45% for 2024, indicating strong asset quality management [8]. Growth Projections - Revenue growth is forecasted to accelerate to 12.70% in 2026 and 10.40% in 2027, while net profit growth is expected to be 14.45% in 2026 and 10.88% in 2027 [8][9]. - The bank's total assets are projected to grow steadily, with a significant increase in retail customer assets and wealth management products [6].