Bank of Ningbo (002142 CH): Buy: High loan growth and continued industry-leading earnings growth in 1H26

研报英文原文证据摘录

Bank of Ningbo (002142 CH): Buy: High loan growth and continued industry-leading earnings growth in 1H26

.9 0.8 0.7

stronger earnings growth, driven by the release of excess provisions. ROE inc. gwill (%) 13.6 13.4 13.0 12.8

Continued high loan growth and slightly narrower NIM in 1H26e. The bank issues 52-WEEK PRICE (CNY)

loans to local central SOEs at higher-than-peers rates via providing comprehensive 45.00

financial services, thus optimising its asset mix. Coupled with its proactive efforts to 34.50

reduce liability costs, the bank's NIM should stabilise q-o-q in 2Q-4Q26. We anticipate

a 7bp decline in its NIM in 1H26. Besides, given aggressive expansion of its local 07/25 01/26 07/2624.00

central SOE business in Ningbo and operations outside Zhejiang, we expect its loans Target price: 42.90 High: 33.55 Low: 26.18 Current: 31.55

to grow 15.5% y-o-y in 1H26, driving full-year net interest income to grow 13% y-o-y. Source: LSEG IBES, HSBC Qianhai Securities estimates

Fee income to slow down in 2Q26e but maintain double-digit y-o-y growth in

Angel Sun* (Reg. No. S1700519080001)

2026e. BoNB's fee income rose remarkably in 1Q26, thanks to a low base in 1Q25 Head of A-share Financials Research

and the robust wealth management growth in 1Q26 driven by Maxwealth Fund’s HSBC Qianhai Securities Limited

angel.y.sun@hsbcqh.com.cn

successful equity investment. We estimate 15% y-o-y growth in fees and commissions +86 21 5066 2015

income in 1H26, but a 53.1% y-o-y decline in 2Q26, given the impacts of equity

market volatility on fund product sales since 2Q26, in addition to a higher base as the * Employed by a non-US affiliate of HSBC Securities (USA) Inc, and is

not registered/ qualified pursuant to FINRA regulations

growth turned positive in 2Q25.