Performance Review - Ningbo Bank's 1Q25 performance met expectations with revenue growth of 6% year-on-year, pre-tax profit growth of 2%, and net profit growth of 6% [1] Development Trends - The pace of scale expansion accelerated, with total assets, loans, and deposits growing by 18%, 20%, and 20% year-on-year, respectively, faster than previously expected [2] - In 1Q25, new loans comprised 86% corporate loans, 17% bill discounts, and -3% personal loans, while new deposits were 84% corporate deposits [2] - Net interest margin narrowed to 1.80%, down 10 basis points year-on-year and 9 basis points quarter-on-quarter, with asset yield declining by 48 basis points year-on-year to 3.62% [2] - Non-interest income decreased, with net fee income down 1% and other non-interest income down 7% due to losses from trading financial assets [2] Cost Control - Operating expenses decreased by 3% year-on-year, with the cost-to-income ratio dropping to 29% [3] - The non-performing loan (NPL) ratio remained stable at 0.76%, with an estimated NPL generation rate of 1.14%, slightly up by 6 basis points quarter-on-quarter [3] - Tax expenses decreased year-on-year, enhancing net profit growth to 6% despite a lower pre-tax profit growth rate [3] Tax and Trade Impact - The increase in the tax rate for 2024 is attributed to the bank's strategy of writing off bad loans before disposal [4] - The impact of tariff increases is manageable, with minimal exposure to businesses directly affected, and potential effects mainly on future credit demand and client transaction income [4] Profit Forecast and Valuation - The profit forecast for 2025E/2026E remains largely unchanged, with the current stock price corresponding to 0.72x/0.65x 2025E/2026E P/B [5] - The target price is maintained at 30.73 yuan, corresponding to 0.88x/0.80x 2025E/2026E P/B, indicating a potential upside of 23.1% from the current stock price [5]