Investment Rating - The investment rating for the report on Bank of China is "Buy" [5] Core Insights - Bank of China reported a revenue growth of 2.6% year-on-year in Q1 2025, which is better than expected, while profit decreased by 2.9% year-on-year [2][5] - The bank's non-performing loan (NPL) ratio remained stable at 1.25% at the end of Q1 2025, with a provision coverage ratio of 198%, down 3 percentage points from the end of 2024 [4][5] - The report anticipates a net profit growth of 1.07%/6.26%/5.93% for the years 2025-2027, with a target price of 6.40 CNY per share, indicating a potential upside of 16% from the current price [5] Summary by Sections Revenue Performance - In Q1 2025, Bank of China's revenue increased by 2.6% year-on-year, which is an improvement of 1.4 percentage points compared to 2024 [2] - The average net interest margin for Q1 2025 was 1.29%, a decrease of 11 basis points from Q4 2024 and 15 basis points from Q1 2024 [3] Profitability - The bank's profit for Q1 2025 decreased by 2.9% year-on-year, attributed to a 23.3% increase in income tax compared to the previous year [2][5] - Non-interest income showed a positive trend, with a 2.1% year-on-year increase in fee income and a significant 669% increase in foreign exchange gains [2] Asset Quality - The NPL generation rate increased by 7 basis points to 0.49% in Q1 2025, indicating a slight rise in new non-performing loans, but overall risk performance remains stable [4] - The provision coverage ratio at the end of Q1 2025 was 198%, reflecting a decrease of 3 percentage points from the end of 2024 [4] Forecast and Valuation - The forecast for Bank of China's net profit for 2025-2027 is 240.39 billion CNY, 255.43 billion CNY, and 270.57 billion CNY respectively, with corresponding book values per share of 8.49 CNY, 9.01 CNY, and 9.56 CNY [5][12] - The target valuation for 2025 is set at a price-to-book ratio of 0.75x, leading to a target price of 6.40 CNY per share [5]

Investment Rating - The report maintains a "Buy" rating for Ningbo Bank [3] Core Views - Ningbo Bank reported a revenue of 66.6 billion yuan for 2024, representing an 8.2% year-on-year growth, and a net profit attributable to shareholders of 27.1 billion yuan, up 6.2% year-on-year [1] - The bank's non-performing loan ratio remained stable at 0.76% in Q4 2024, while the provision coverage ratio decreased by 15.5 percentage points to 389% [1][3] - The increase in interest income and a stable pricing environment contributed to revenue growth, while a rise in the effective tax rate was a primary factor for the slowdown in profit growth [6][9] Financial Data and Profit Forecast - Total revenue (in million yuan) is projected to grow from 61,585 in 2023 to 70,847.17 in 2025E, with a year-on-year growth rate of 6.33% [2] - Net profit attributable to shareholders is expected to increase from 25,535 in 2023 to 28,610.80 in 2025E, with a growth rate of 5.47% [2] - The bank's return on equity (ROE) is forecasted to decline from 15.05% in 2023 to 12.59% in 2025E [2] Key Performance Indicators - Interest income increased by 17.3% year-on-year in 2024, contributing 11.5 percentage points to revenue growth [6] - Non-interest income declined by approximately 10% in 2024, impacting revenue growth by 3.3 percentage points [6] - The cost-to-income ratio improved, decreasing by 3.4 percentage points to 35.6%, which positively affected profit growth [6] Loan Growth and Asset Quality - Loan growth remained robust at 17.8% year-on-year in Q4 2024, with corporate loans growing by 24% [9] - Retail loan growth was approximately 10%, down from 15% in Q3 2024 [9] - The bank's non-performing loan generation rate increased to 1.15% in 2024, indicating a need for close monitoring of retail asset quality [6][9] Dividend Policy - The bank plans to increase its dividend payout ratio to 22.8% in 2024, up from 16% in 2023, resulting in a projected dividend yield increase from 2.7% to 3.85% [6][9]