ZION Latest Report

Key Financial Data

1. Zhiang Bank's total operating revenue in December 2024 was RMB82,000,000, up approximately 12.16% from RMB73,100,000 in 2023, reflecting the bank's strong performance in operating revenue and its competitiveness and growth potential in the market.

2. Interest income was RMB62,700,000, up from RMB58,300,000, indicating the bank's ability to earn more effectively from loans in an improved interest rate environment.

3. The total loans and leases of Zhiang Bank increased by US$1.5 billion in the second quarter of 2024, mainly due to the growth of residential mortgage and commercial real estate loans, showing positive customer demand.

4. Customer deposits (excluding brokerage deposits) grew by RMB3.6 billion in the second quarter of 2024, demonstrating the bank's success in attracting customer deposits.

Peer Comparison

1. Industry-wide analysis: Overall, the banking industry saw a general increase in operating revenue in the backdrop of economic recovery, especially in an environment of rising interest rates, with significant improvement in interest income for banks. Many banks reported similar revenue growth, showing a healthy development trend for the industry.

2. Peer evaluation analysis: Compared with other banks in the industry, Zhiang Bank's total operating revenue growth rate is above the industry average, especially in interest income growth, where Zhiang Bank outperforms many large banks, showing its advantages in customer service and product innovation.

Summary

Zhiang Bank's total operating revenue achieved significant growth in 2024, mainly benefiting from the rise in market demand, increased interest income, and diversified business. The effectiveness of cost control may also contribute to the improvement of net margin, further promoting revenue growth. Overall, Zhiang Bank's performance in the industry is relatively stable, showing its good market adaptability and competitiveness.

Opportunities

1. With the recovery of the economy, banks can further expand their customer base, especially in the areas of housing and commercial loans.

2. The rising interest rate environment brings more interest income for banks, which can attract more customers by diversifying loan products.

3. Strengthening the response to environmental, social, and governance (ESG) issues may attract more customers interested in sustainable investments, thus boosting the bank's market share.

Risks

1. Uncertainties in the macro economy, such as geopolitical conflicts, may affect the bank's overall performance and customer demand.

2. The closure or unfavorable developments of other banks may affect investor confidence in the banking industry, thus affecting Zhiang Bank's customer base.

3. Changes in market liquidity and fluctuations in capital-raising ability may put pressure on the bank's operations.