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HFBL Latest Report

Earnings AnalystThursday, Feb 13, 2025 2:15 am ET

1min read

HFBL --

Financial Performance

Home Federal Bancorp (HFBL) recorded a total operating revenue of RMB50.88 million as of December 31, 2024, up 0.56% from RMB50.40 million in 2023. Although the growth rate is small, it shows that the company maintains a certain stability in revenue. The rise in market interest rates and growth in insurance business support revenue, while the company also shows efforts in cost control.

Key Financial Data

1. HFBL's net interest income decreased by 3.19% from 2023, mainly affected by the downward adjustment of mortgage rates and insufficient credit demand.

2. HFBL's pre-tax profit in 2024 was RMB21.46 million, slightly lower than RMB23.37 million in 2023, showing efforts in cost control.

3. In the insurance business, HFBL's revenue reached RMB30,000 in 2024, up from RMB28,000 in 2023, providing support for overall operating revenue.

4. HFBL has adjusted its market competition strategy, planning to focus more on short-term consumer loans and business loans to cope with the pressure of rising interest rates.

Peer Comparison

1. Industry-wide analysis: The financial industry as a whole showed stable revenue growth in 2024, especially in the context of rising interest rates, with interest income generally increasing for many banks, demonstrating the industry's resilience.

2. Peer evaluation analysis: HFBL's total operating revenue growth rate is relatively small, which may reflect its lack of market competitiveness. Other peer banks generally achieved higher revenue growth rates in 2024, and HFBL needs to focus on improving the market appeal of its products and services to gain a more favorable position in the competition.

Summary

HFBL's financial performance in 2024 shows a certain stability, although the growth rate of operating revenue is small, and its net interest income has decreased, but the company has made positive efforts in insurance business and cost control. It needs to be noted that the company's performance in the competition is relatively weak, and it needs to improve the attractiveness of its products and services.

Opportunities

1. HFBL plans to launch new deposit products to expand its customer base, which may bring revenue growth.

2. The launch of mobile banking and internet banking helps to enhance customer experience and increase customer loyalty.

3. The company is exploring opportunities for new branch openings and possible acquisitions to enhance market coverage.

Risks

1. Continuous decline in net interest income may affect the company's profitability.

2. Intense competition may put pressure on HFBL's revenue growth.

3. Failure to recover credit demand may have a negative impact on the company's overall revenue and profitability.

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