Core Viewpoint - Ningbo Bank reported a solid performance in the first half of 2025, with significant growth in revenue and net profit, indicating resilience in a challenging economic environment [1][3]. Financial Performance - In the first half of 2025, Ningbo Bank achieved operating income of 37.16 billion yuan, a year-on-year increase of 7.91% [1]. - The net profit attributable to shareholders reached 14.77 billion yuan, up 8.23% compared to the same period last year [1]. - As of June 30, 2025, total assets amounted to 3,470.33 billion yuan, reflecting an 11.04% increase from the end of the previous year [1]. - Total customer deposits reached 2,076.41 billion yuan, a growth of 13.07% from the end of last year [1]. - Total loans and advances stood at 1,673.21 billion yuan, increasing by 13.36% compared to the end of the previous year [1]. Risk Management and Asset Quality - The non-performing loan (NPL) ratio remained stable at 0.76% as of June 30, 2025 [1][3]. - The provision coverage ratio improved to 374.16%, up by 3.62 percentage points from the previous quarter [1]. - The capital adequacy ratio was reported at 15.21%, an increase of 0.27 percentage points quarter-on-quarter [1]. - The core Tier 1 capital adequacy ratio rose to 9.65%, up by 0.33 percentage points from the previous quarter [1]. Strategic Initiatives - Ningbo Bank is implementing a differentiated business strategy to adapt to changing market conditions and enhance its competitive advantages [2]. - The bank is focusing on digital transformation and has introduced various online platforms to improve customer engagement and operational efficiency [2]. - The bank is actively managing its liability costs and structure to optimize its financial performance [2]. Market Outlook - Despite external economic uncertainties, Ningbo Bank is expected to maintain stable profitability due to its strong asset quality and effective risk management [3]. - The bank's high provision coverage is anticipated to support stable net profit growth in the future [3].

Core Viewpoint - Ningbo Bank demonstrated strong resilience in the first quarter of 2025, achieving steady growth in profits and assets despite a challenging external economic environment and intense industry competition [1][4]. Financial Performance - In Q1 2025, the net profit attributable to shareholders reached 7.417 billion yuan, a year-on-year increase of 5.76% [4]. - The operating revenue for the same period was 18.495 billion yuan, reflecting a year-on-year growth of 5.63% [4]. - The annualized weighted average return on equity was 14.18%, while the total asset return rate stood at 0.91% [4]. Asset Growth - As of March 31, 2025, the total assets amounted to 3396.035 billion yuan, representing an 8.67% increase from the beginning of the year [4]. - Loans and advances reached 1640.169 billion yuan, marking an 11.12% growth since the start of the year [4]. - Customer deposits totaled 2182.604 billion yuan, which is an 18.86% increase year-to-date [4]. Risk Management - The bank maintained a non-performing loan ratio of 0.76%, unchanged from the beginning of the year, and a provision coverage ratio of 370.54%, indicating strong risk mitigation capabilities [8]. - The bank's risk management system is comprehensive, covering all processes, chains, cycles, and dimensions, ensuring stable asset quality [8]. Strategic Focus - Ningbo Bank is committed to a strategy of "doing what big banks cannot do," focusing on differentiated development paths and leveraging financial technology to meet diverse customer needs [1][8]. - The bank aims to balance risk and return while adapting to changes in the operating environment, with a focus on sustainable and high-quality growth [8].

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]