Breaking Down Bank of Ningbo Co., Ltd. Financial Health: Key Insights for Investors

Curious whether Bank of Ningbo (002142.SZ) is a resilient regional powerhouse or a risk-laden growth story? Dive into hard figures: in Q1 2025 the bank delivered operating income of RMB 18.495 billion (up 5.63% YoY) with net interest income of RMB 12.835 billion (+11.59% YoY), while full-year 2024 operating income reached RMB 66.632 billion and net profit attributable to shareholders was RMB 27.127 billion (+6.23% YoY); balance-sheet scale is notable too, with total assets climbing to RMB 3,578.40 billion as of Sept 30, 2025 (up 14.50% YoY) and customer deposits up 11.52% to RMB 2,048 billion, yet investors should weigh these growth signals against capital and credit metrics such as a ROE of 12.21%, a provision coverage ratio that fell to 389.25% at end‑2024, a stable NPL ratio of 0.76%, and a modest core Tier‑1 trend-read on for the detailed revenue, profitability, capital structure, liquidity, valuation and risk breakdown that will help you assess whether current valuation and operational trends match your investment thesis

Bank of Ningbo Co., Ltd. (002142.SZ) - Revenue Analysis

• Q1 2025 operating income: RMB 18.495 billion, up 5.63% year-on-year.
• Q1 2025 net interest income: RMB 12.835 billion, up 11.59% year-on-year - indicating stronger margin or volume recovery in traditional lending activities.
• Full year 2024 operating income: RMB 66.632 billion, an 8.2% increase versus 2023.
• Net profit attributable to shareholders in 2024: RMB 27.127 billion, up 6.23% year-on-year.
• Non-interest income contribution (2023): 33.58% of operating revenue, reflecting diversification beyond net interest income.

• Net interest income remains the primary driver (Q1 2025: RMB 12.835bn), growing faster than total operating income - a sign of margin expansion or higher interest-earning asset growth.
• Non-interest income forming roughly one-third of revenue (33.58% in 2023) provides resilience against interest rate cycles.
• Balance-sheet expansion supports revenue scale: total assets at RMB 3,578.40bn (2025-09-30) and customer deposits at RMB 2,048bn (up 11.52% YTD) underpin future net interest income potential.

Bank of Ningbo Co., Ltd. (002142.SZ) - Profitability Metrics

Key profitability indicators for Bank of Ningbo Co., Ltd. (002142.SZ) show robust earnings power, improving operational efficiency and stable interest income management. Relevant figures, trends and comparisons are summarized below.

• Return on Equity (ROE): 12.21% as of December 2025 - a 299.93% increase versus the four-quarter average of 3.05%.
• Cost-to-Income Ratio: 29.07% in Q1 2025, improving by 2.46 percentage points year-over-year, indicating enhanced operational efficiency.
• Net Interest Margin (NIM): 1.9%, reflecting effective interest-rate and asset-liability management.
• Net Profit Margin: ~40.7% in 2024, signaling strong conversion of revenue into net earnings.
• Basic Earnings Per Share (EPS): RMB 3.95 in 2024, up from RMB 3.73 in 2023.
• Weighted Average ROE (2023): 15.08%, demonstrating consistent historical profitability.

For context on the bank's broader corporate background, see: Bank of Ningbo Co., Ltd.: History, Ownership, Mission, How It Works & Makes Money

Bank of Ningbo Co., Ltd. (002142.SZ) - Debt vs. Equity Structure

• Total assets (end‑2024): RMB 3,396.0 billion.
• Total equity (end‑2024): RMB 236.1 billion - implying an asset-to-equity ratio of 14.4x.
• Capital adequacy ratio (CAR, end‑2024): 15.32% (up 0.31 pp vs. end‑2023).
• Tier 1 capital adequacy ratio (end‑2023): 11.01%.
• Core Tier 1 capital adequacy ratio (end‑2023): 9.64%.
• Core Tier 1 capital adequacy ratio (Q1 2025): 9.32% (down 0.52 pp from end‑2024).
• Provision coverage ratio (end‑2024): 389.25% (down 71.79 pp from end‑2023).
• Loan‑to‑deposit ratio: described as appropriate, indicating balanced leverage between lending and customer deposits.

• Capital strength: A CAR of 15.32% provides a comfortable buffer above minimum regulatory thresholds, supported by substantial equity (RMB 236.1 billion) relative to assets.
• Leverage profile: The 14.4x asset‑to‑equity multiple signals moderate leverage for a commercial bank - consistent with a prudent deposit‑funded balance sheet.
• Core capital trend: The decline in core Tier 1 to 9.32% in Q1 2025 suggests either growth in risk‑weighted assets or capital pressure from earnings/distributions; monitoring quarterly trends is important.
• Provision coverage dynamics: A high provision coverage ratio (389.25%) remains a strong buffer against credit losses, though the sharp drop vs. prior year warrants attention to recoveries, write‑offs, or portfolio mix changes.
• Funding mix: The stated appropriate loan‑to‑deposit ratio implies dependence on customer deposits rather than wholesale funding, supporting stability of liabilities.

Bank of Ningbo Co., Ltd. (002142.SZ) - Liquidity and Solvency

• NPL ratio: 0.76% as of end-2024 (unchanged vs. prior year).
• Provision coverage ratio: 389.25% at end-2024 (down 71.79 percentage points year-over-year).
• Cash and short-term investments: RMB 655.3 billion.
• Net cash flow from operating activities (first 9 months of 2025): RMB 222.41 billion, +77.92% YoY.
• Total deposits: RMB 2,293.3 billion; total loans: RMB 1,602.0 billion.
• Reported current ratio: low (indicative of efficient short-term liability management).

• Liquidity posture: substantial cash and short-term holdings (RMB 655.3bn) plus deposits well in excess of loans provide a comfortable funding buffer; loan-to-deposit ~69.9% implies room for lending growth or asset reallocation.
• Operating cash strength: a 77.92% YoY increase in net operating cash (RMB 222.41bn over 9M 2025) enhances near-term liquidity and supports provisioning or balance-sheet deployment.
• Asset quality and provisioning: stable NPLs (0.76%) but a notable decline in provision coverage to 389.25% warrants monitoring-coverage remains high in absolute terms but fell materially year-over-year.
• Short-term management: a low current ratio signals that the bank runs lean on current assets versus liabilities, which can be efficient but increases dependence on liquid reserves and operating cash generation.

Bank of Ningbo Co., Ltd. (002142.SZ) - Valuation Analysis

Key market and profitability metrics for Bank of Ningbo provide a snapshot of how the market values the bank relative to its earnings and book equity, and how efficiently it converts equity into profit.

• Market capitalization: CN¥183.8 billion
• Stock price (Dec 2025): CN¥28.52
• Return on equity (ROE): 12.21%
• Earnings per share (EPS) 2024: RMB 3.95
• Earnings per share (EPS) 2023: RMB 3.73
• Price-to-earnings (P/E): not specified in available data
• Price-to-book (P/B): not specified in available data

Practical valuation checkpoints for investors:

• Use the reported EPS (RMB 3.95 for 2024) and the Dec 2025 price (CN¥28.52) to estimate an implied trailing P/E if required: implied P/E ≈ 28.52 / 3.95 ≈ 7.22 (note: this is a simple division of price by latest reported EPS and may not reflect forward or consensus EPS).
• With ROE at 12.21%, the bank demonstrates robust profitability; compare this to peer ROEs to assess relative performance and valuation premium/discount.
• Absence of published P/B and P/E in source data requires investors to derive these ratios from up-to-date book value and consensus earnings when making comparisons.

For profile context and investor behavior around this ticker, see: Exploring Bank of Ningbo Co., Ltd. Investor Profile: Who's Buying and Why?

Bank of Ningbo Co., Ltd. (002142.SZ) - Risk Factors

Key risk indicators from the latest reported periods point to evolving credit and liquidity pressures for Bank of Ningbo Co., Ltd. Investors should weigh these metrics in context of the bank's balance sheet, earnings volatility and macroeconomic conditions.

• Provision coverage decline: A fall of 71.79 percentage points to 389.25% (end‑2024) removes a sizable cushion that previously absorbed losses on delinquent assets.
• Quarterly provision trend: An 18.8 percentage point month‑on‑month drop in Q1 2025 signals either accelerated write‑offs, slower provisioning inflows, or faster asset deterioration.
• Rising impairment charges: Loan impairment losses jumped 45.9% YoY in Q1 2025, highlighting growing stress in credit portfolios even though headline NPL ratio remained 0.76% at end‑2024.
• Capital adequacy pressure: Core Tier 1 at 9.32% in Q1 2025 (down 0.52 pp) narrows the bank's capital buffer relative to regulatory thresholds and peers.
• Liquidity risk: A low current ratio (below 1.0) raises short‑term liquidity concerns; reliance on wholesale funding or market access could be consequential if conditions tighten.
• Asset quality watch: Stable NPL ratio (0.76%) offers temporary comfort, but the combination of falling coverage and rising impairment losses creates downside risk if defaults accelerate.

Practical items for investors monitoring this risk set include loan portfolio seasoning, concentration in vulnerable sectors, the trend in coverage after Q1 2025, capital plan disclosures, and short‑term funding behavior. For broader corporate context and historical metrics, see: Bank of Ningbo Co., Ltd.: History, Ownership, Mission, How It Works & Makes Money

• Immediate red flags to watch: further declines in provision coverage, any drop in Core Tier 1 below regulatory minima, consecutive quarters of rising impairment charges, or deterioration in the current ratio.
• Potential mitigants to seek from management: recapitalization plans, accelerated provisioning policies, asset sales to pare risky exposures, and strengthened liquidity buffers.

Bank of Ningbo Co., Ltd. (002142.SZ) - Growth Opportunities

• Total assets rose 14.50% to RMB 3,578.40 billion as of September 30, 2025, demonstrating scale expansion and room to grow interest-earning assets.
• Customer deposits increased 11.52% year-to-date to RMB 2,048.00 billion, providing a stable and low-cost funding base for asset growth.
• Net profit attributable to shareholders in 2024 reached RMB 27.127 billion, up 6.23% YoY, confirming ongoing profitability amid growth.
• Net interest income in Q1 2025 grew 11.59% YoY, reflecting effective interest rate management and repricing benefits.

• Balance-sheet leverage: An asset-to-equity ratio of 14.4x on RMB 3,396.0 billion assets and RMB 236.1 billion equity provides capacity for disciplined asset growth and targeted capital allocation.
• Deposit-led funding: Strong deposit expansion (RMB 2,048.0 billion, +11.52%) lowers marginal funding costs and supports margin expansion if asset yields are optimized.
• Income momentum: Double-digit growth in net interest income (Q1 2025: +11.59% YoY) suggests opportunities to scale core lending and treasury businesses while managing rates.
• Profitability resilience: RMB 27.127 billion net profit in 2024 (+6.23% YoY) underpins capacity for reinvestment, dividends or capital buffering.
• Risk-management leverage: A provision coverage ratio of 389.25% (down 71.79 pp) points to potential to refine provisioning strategy, optimize capital usage and improve risk-adjusted returns.
• Scale-driven product expansion: Growing asset base supports expansion into fee businesses, wealth management and SME lending to diversify income.