Bank of Ningbo (002142) Q2 2024 earnings summary

Executive summary

• Achieved stable growth in assets and profitability amid a complex market environment, with total assets up 11.88% and net profit attributable to shareholders up 5.42% year-over-year for H1 2024.

• Focused on serving the real economy, optimizing business model, and enhancing digital and risk management capabilities.

• Maintained industry-leading asset quality and capital adequacy, with a non-performing loan ratio of 0.76% and capital adequacy ratio of 15.28%.

Financial highlights

• Operating income reached RMB 34,437 million, up 7.13% year-over-year; net profit attributable to shareholders was RMB 13,649 million, up 5.42%.

• Net interest income grew 14.75% year-over-year, while non-interest income declined 5.71%.

• Basic and diluted EPS were RMB 2.07, up 5.61% year-over-year.

• Operating cash flow was RMB 131,911 million, up 126.17% year-over-year.

• Total assets at June 30, 2024, were RMB 3,033,744 million, up 11.88% from year-end 2023.

• Customer deposits increased 17.63% and customer loans increased 12.50% from year-end 2023.

Outlook and guidance

• Management expects net interest margin pressure to ease in H2 2024 as asset yields stabilize and funding costs are controlled.

• Fee income growth remains uncertain due to macroeconomic and capital market volatility.

• Asset quality is expected to remain at a good industry level, with continued focus on risk management and prudent lending.

• Capital management will prioritize compliance with new regulatory requirements and support for business growth.