Investment Rating - The investment rating for the company is "Outperform the Market" [5] Core Views - The company's revenue and profit growth rates have slightly declined, with Q1 2025 revenue at 18.5 billion yuan, a year-on-year increase of 5.6%, and net profit at 7.4 billion yuan, up 5.8% year-on-year [1][2] - The asset growth is robust, with total assets increasing by 17.6% year-on-year to 3.40 trillion yuan, driven by a 20.2% increase in deposits and a 20.4% increase in loans [1] - The non-performing loan generation rate has decreased, indicating improved asset quality, with a year-on-year decline of 0.13 percentage points to 1.15% [2] Financial Performance Summary - Q1 2025 financial highlights include: - Revenue: 185 billion yuan, up 5.6% year-on-year - Net profit: 74 billion yuan, up 5.8% year-on-year - Annualized weighted ROE: 14.2%, down 1.3 percentage points year-on-year [1] - Loan growth was significant, with new loans of 164.1 billion yuan in Q1, compared to 109.4 billion yuan in the same period last year [1] - The net interest margin for Q1 was 1.80%, a decrease of 10 basis points year-on-year [1][2] Earnings Forecast and Valuation - The company is expected to achieve net profits of 29.2 billion yuan, 31.6 billion yuan, and 34.1 billion yuan for 2025, 2026, and 2027 respectively, with year-on-year growth rates of 7.6%, 8.4%, and 7.8% [2][4] - The diluted EPS is projected to be 4.27 yuan, 4.64 yuan, and 5.01 yuan for 2025, 2026, and 2027 respectively [2][4] - Current stock price corresponds to a PE of 5.9, 5.4, and 5.0 for the years 2025, 2026, and 2027, and a PB of 0.71, 0.65, and 0.59 respectively [2][4]

Investment Rating - The investment rating for Ningbo Bank is "Buy-A" with a 6-month target price of 28.09 CNY, compared to the current stock price of 24.96 CNY [4]. Core Views - The report highlights that Ningbo Bank's performance in Q1 2025 was primarily driven by scale expansion, cost reduction, and tax benefits, despite a slight slowdown in various performance metrics compared to 2024 [1][10]. - The bank's non-performing loan generation rate has begun to decline, indicating improved asset quality, while the bank has increased its provisioning efforts [9][10]. Summary by Sections Financial Performance - In Q1 2025, Ningbo Bank's revenue grew by 5.63% year-on-year, with pre-provision profit increasing by 10% and net profit attributable to shareholders rising by 5.76% [1]. - The average daily balance of interest-earning assets increased by 17.79% year-on-year, with new asset scale reaching 270.8 billion CNY, a year-on-year increase of 94.3 billion CNY [1][17]. - New loans amounted to 162 billion CNY, up 53 billion CNY year-on-year, primarily driven by corporate loans and bill discounting [1][18]. Capital and Asset Quality - As of the end of Q1 2025, the core Tier 1 capital adequacy ratio was 9.32%, down 0.52 percentage points from the end of the previous year, indicating challenges in balancing capital consumption with asset expansion [2]. - The bank's non-performing loan balance increased by 20.61% year-on-year, while the total loan amount grew by 20.41% [10]. - The non-performing loan generation rate (annualized) was 1.08%, down 12 basis points year-on-year, reflecting a slowdown in the generation of new non-performing loans [9][10]. Income and Cost Management - The net interest margin decreased by 7 basis points quarter-on-quarter to 1.8%, with a year-on-year decline of 10 basis points, slightly impacting net interest income growth [2][3]. - Non-interest income fell by 5.78% year-on-year, with net fee and commission income down by 1.32% [3][9]. - The cost-to-income ratio improved to 29.07%, a decrease of 2.46 percentage points year-on-year, indicating effective cost control measures [9]. Future Outlook - For the full year of 2025, revenue growth is expected to be 6.50%, with net profit growth projected at 5.48% [10][12].