Investment Rating - The report maintains a rating of "Buy" for CITIC Bank (601998.SH) [1] Core Views - CITIC Bank's Q1 2025 report shows a revenue of 51.77 billion, a year-on-year decrease of 3.7%, and a net profit attributable to shareholders of 19.51 billion, a year-on-year increase of 1.7% [3][4] - The bank's annualized weighted average return on equity (ROE) for Q1 2025 is 11.42%, down 1.15 percentage points year-on-year [3] Summary by Sections Financial Performance - Revenue, PPOP, and net profit growth rates for Q1 2025 are -3.7%, -3.9%, and 1.7% respectively, showing a decline compared to 2024 [4] - Net interest income and non-interest income growth rates are 2.1% and -14.4% respectively, with significant declines from 2024 [4] Asset Quality - The non-performing loan (NPL) ratio remains stable at 1.16%, with a provision coverage ratio of 207.1% [9][10] - The bank's NPL balance is 67.85 billion, an increase of 1.36 billion from the beginning of the year [9] Capital Adequacy - As of Q1 2025, the core tier 1 capital ratio, tier 1 capital ratio, and total capital ratio are 9.45%, 10.9%, and 12.9% respectively, all showing a decline from the end of the previous year [10][30] Earnings Forecast and Valuation - The report forecasts EPS for 2025-2027 to be 1.25, 1.29, and 1.33 respectively, with current stock price corresponding to PB valuations of 0.54, 0.51, and 0.47 times [10][11]

Investment Rating - The report maintains a "Buy" rating for Hangzhou Bank with a target price of 16.48 CNY per share, reflecting a 20% valuation premium compared to comparable companies [3][6]. Core Insights - The report predicts a steady growth in net profit for Hangzhou Bank, with expected year-on-year growth rates of 16.5%, 15.1%, and 15.7% for 2025, 2026, and 2027 respectively. The book value per share (BVPS) is projected to be 19.87, 22.75, and 26.09 CNY for the same years [3][10]. - The bank's revenue and profit growth rates are positioned within the top tier of the industry, with a notable increase in net interest income and non-interest income contributing to overall performance [10]. Financial Performance Summary - **Revenue**: The bank's revenue is projected to grow from 35,016 million CNY in 2023 to 46,845 million CNY by 2027, with a compound annual growth rate (CAGR) of approximately 8.2% [5][13]. - **Net Profit**: The net profit attributable to the parent company is expected to rise from 14,383 million CNY in 2023 to 26,354 million CNY in 2027, reflecting a CAGR of about 15.7% [5][13]. - **Earnings Per Share (EPS)**: EPS is forecasted to increase from 2.31 CNY in 2023 to 4.17 CNY in 2027 [5][13]. - **Return on Assets (ROA)**: The bank's ROA is expected to stabilize around 0.9% from 2025 to 2027 [5][13]. - **Return on Equity (ROE)**: The average ROE is projected to improve from 15.6% in 2023 to 17.1% in 2027 [5][13]. Asset and Liability Management - **Loan Growth**: Total loans are expected to increase significantly, from 807,096 million CNY in 2023 to 1,401,129 million CNY by 2027, indicating a strong demand for credit [13]. - **Deposit Growth**: Total deposits are projected to grow from 1,058,308 million CNY in 2023 to 2,030,151 million CNY in 2027, reflecting a robust deposit base [13]. - **Asset Quality**: The non-performing loan (NPL) ratio is expected to remain stable at 0.76% over the forecast period, indicating effective asset quality management [10][13]. Valuation Metrics - **Price-to-Earnings (P/E) Ratio**: The P/E ratio is projected to decrease from 6.25 in 2023 to 3.46 in 2027, suggesting an attractive valuation relative to earnings growth [5][13]. - **Price-to-Book (P/B) Ratio**: The P/B ratio is expected to decline from 0.92 in 2023 to 0.55 in 2027, indicating potential undervaluation [5][13].