Investment Rating - The report maintains a "Buy" rating for Jiangsu Bank with an updated target price of 10.3 CNY per share, reflecting a valuation of 0.8 times the projected book value for 2024 [2][5]. Core Insights - Jiangsu Bank has transitioned from a high-growth phase to a stage of high-quality development, with enhanced operational resilience and stable performance expected to exceed industry averages. The net profit growth forecasts for 2024-2026 have been adjusted to 10.1%, 9.0%, and 9.6% respectively, with corresponding book values per share (BVPS) of 12.97, 14.22, and 15.60 CNY [3][4]. Financial Performance Summary - For Q3 2024, Jiangsu Bank reported a year-on-year revenue growth of 4.3%, with net interest income supported by volume despite a slight contraction in net interest margin due to declining asset yields. The cost-to-income ratio improved, decreasing by 5.2 percentage points to 15.6%, laying a solid foundation for profit growth [3][4]. - The bank's total revenue for 2024 is projected to reach 78.847 billion CNY, reflecting a growth rate of 6.1% compared to the previous year. The net profit attributable to shareholders is expected to be 31.666 billion CNY, marking a 10.1% increase [4][11]. - As of Q3 2024, the non-performing loan (NPL) ratio remained stable at 0.89%, indicating strong asset quality, while the coverage ratio for provisions was at a robust 351% [3][4].

Investment Rating - The investment rating for Jiangsu Bank (600919) is "Buy" (maintained) [4] Core Views - Jiangsu Bank reported a double-digit profit growth with a robust credit environment [6] - The bank's revenue for the first three quarters of 2024 reached 62.303 billion yuan, a year-on-year increase of 6.18% [6] - The net profit attributable to shareholders for the same period was 28.235 billion yuan, reflecting a year-on-year growth of 10.06% [6] Summary by Sections Financial Performance - For Q1-Q3 2024, Jiangsu Bank's interest income and non-interest income grew by 1.49% and decreased by 11.88% year-on-year, respectively [6] - The bank's net profit growth slightly increased by 0.01 percentage points compared to H1 2024 [6] - The contribution to net profit from interest-earning assets, net interest margin, other non-interest income, cost expenses, and provisions were +18.10%, -16.61%, +5.95%, +0.83%, and +3.14%, respectively [6] Credit and Deposit Growth - As of Q3 2024, the loan balance was 2.09 trillion yuan, a year-on-year increase of 17.02% [6] - The deposit balance reached 2.08 trillion yuan, reflecting a year-on-year growth of 9.08% [6] - The bank's credit structure is favorable, with retail, corporate, and discount loans accounting for 31.69%, 27.60%, and 40.72% of new loans, respectively [6] Asset Quality and Capital Adequacy - As of Q3 2024, the non-performing loan ratio and attention ratio were 0.89% and 1.45%, respectively [6] - The provision coverage ratio was 351.03%, indicating strong risk compensation capability [6] - The core Tier 1 capital adequacy ratio was 9.27%, showing sufficient capital [6] Future Outlook - The bank expects revenue growth of 6.58%, 7.01%, and 8.04% for 2024, 2025, and 2026, respectively, with a three-year CAGR of 7.21% [6] - The net profit is projected to grow by 9.75%, 10.71%, and 11.83% for the same years, with a three-year CAGR of 10.76% [6]

Investment Rating - The investment rating for Jiangsu Bank is "Buy" (maintained) [1][2]. Core Views - Jiangsu Bank's performance shows strong sustainability, with a balanced asset distribution and robust asset quality. The bank's core competitiveness is supported by its historical endowment combined with financial technology, a solid public business foundation in manufacturing and infrastructure, and a competitive retail business with scale advantages [1][2]. Summary by Sections Revenue and Profit Growth - Revenue growth has slightly narrowed, with a year-on-year increase of 6.1% in Q3 2024 compared to 7.1% in the first half of 2024. Net profit growth remains stable at 10.1% year-on-year for the first half of 2024 [5][11]. - Cumulative revenue, PPOP, and net profit for Q3 2024 show year-on-year growth of 6.1%, 7.1%, and 10.1% respectively [5][6]. Net Interest Income and Margin - Net interest income decreased by 0.1 percentage points quarter-on-quarter, with the annualized net interest margin declining by 8 basis points to 1.71%. The yield on interest-earning assets fell by 23 basis points to 3.94%, while the cost of interest-bearing liabilities decreased by 10 basis points to 2.17% [8][11]. Asset and Liability Growth and Structure - The asset side remains stable, with public business continuing to grow and retail lending showing signs of recovery in the second half of the year. In Q3 2024, loans increased by 200.8 billion, with public loans up by 208.7 billion and retail loans down by 5.2 billion, although retail loans saw a net increase of 12.8 billion in the third quarter [11][12]. - On the liability side, the proportion of deposits decreased while the proportion of bond issuance increased. In Q3 2024, the changes in the proportions of deposits, bond issuance, and interbank liabilities were -1.8, +3, and -1.2 percentage points respectively [11][12]. Non-Interest Income - Non-interest income increased by 16.9% year-on-year, with other non-interest income showing a marginal upward trend. However, net fee income turned negative with an 11.9% year-on-year decrease [14][15]. Asset Quality - The bank maintains a solid asset quality with a non-performing loan (NPL) ratio of 0.89%, the best level since 2012. The annualized NPL generation rate is 1.21%, with a coverage ratio of 351.03% [16][17].

Investment Rating - The report maintains a "Recommended" rating for the company [5]. Core Insights - The company reported steady growth in operating performance, with a significant rebound in profits due to the reversal of impairment losses. For the first three quarters of 2024, the company achieved operating income and net profit attributable to shareholders of 62.303 billion yuan and 28.235 billion yuan, representing year-on-year growth of 6.18% and 10.06% respectively. The annualized weighted average ROE was 16.33%, a decrease of 1.75 percentage points year-on-year. The performance was primarily driven by high growth in investment business income and the reversal of provisions boosting profits. The credit impairment losses for the first three quarters of 2024 were 12.025 billion yuan, down 1.54% year-on-year [2][3]. Summary by Relevant Sections Operating Performance - The company’s net interest income for the first three quarters of 2024 was 41.693 billion yuan, a year-on-year increase of 1.49%, showing a slight slowdown compared to the first half of the year. The interest income and interest expenses in Q3 decreased by 1.51% and 3.32% year-on-year respectively. As of the end of September 2024, total loans amounted to 2.1 trillion yuan, an increase of 16.22% from the beginning of the year, with corporate loans growing by 18.81% [2][3]. Deposit Growth - Total deposits reached 21.2 trillion yuan by the end of September 2024, up 10.54% from the beginning of the year, with corporate deposits increasing by 22.39% and personal deposits rising by 14.43% [3]. Non-Interest Income - Non-interest income for the first three quarters of 2024 was 20.61 billion yuan, a year-on-year increase of 17.11%. However, intermediary business income fell by 11.88% year-on-year, with a significant decline of 51.81% in Q3 due to increased fees and commissions [3]. Asset Quality - The company maintained stable asset quality, with a non-performing loan ratio of 0.89% as of the end of September 2024, unchanged from the beginning of the year. The coverage ratio was 351.03%, a decrease of 38.5 percentage points year-on-year, but still above the industry average [3]. Financial Forecast - The forecast for 2024-2026 indicates a projected BVPS of 12.73 yuan, 14 yuan, and 15.47 yuan respectively, with corresponding current stock price PB ratios of 0.71X, 0.64X, and 0.58X [3].

王霄鸿 wangxiaohong@orientsec.com.cn 业绩增长稳健，零售存贷款增长较好 ——江苏银行 24Q3 季报点评 核心观点 ⚫ 手续费收入拖累营收增速小幅回落，利润增速保持平稳。截至 24Q3，江苏银行营 收、PPOP、归母净利润累计同比增速（下同）分别较 24H1 变化-1.0pct、2.0pct、 0.01pct。其中净利息收入增速较 24H1 小幅回落 0.3pct，考虑到生息资产增速环比 明显提升，净息差或继续小幅收窄；净手续费及佣金收入增速较 24H1 大幅下降 23.2pct， 一是 24Q3 理财规模增长放缓，给手续费收入增长带来一定压力，二是手 续费支出延续高增；净其他非息收入增速较 24H1 回升 4.2pct，主要是金融投资公 允价值变动以及汇兑收益的贡献。管理费用及信用成本继续压降的背景下，支撑 PPOP 和归母净利润增速环比回升。 ⚫ 资产扩张提速，零售存贷款实现较好增长。截至 24Q3，江苏银行总资产同比增速 较 24H1 提高 1.1pct，其中贷款增速小幅下降 0.6pct 至 17%，而金融投资及同业资 产增长突出。总负债增速较 24H1 回升 1.2pc ...

Investment Rating - The report maintains a "Buy" rating for the company [6] Core Views - The company's revenue growth has slightly slowed due to a decline in fee income, but profit growth remains stable. As of Q3 2024, the year-on-year growth rates for revenue, PPOP, and net profit attributable to the parent company have changed by -1.0 percentage points, 2.0 percentage points, and 0.01 percentage points respectively compared to H1 2024 [1] - The bank's total assets have increased year-on-year, with a notable growth in financial investments and interbank assets. However, deposit growth has decreased, primarily due to pressure on corporate deposits. Personal loans have contributed significantly to the credit increment in the quarter [2] - The report adjusts revenue and profit forecasts based on Q3 2024 performance, predicting net profit growth rates of 11.0%, 11.2%, and 12.5% for 2024, 2025, and 2026 respectively, with corresponding EPS of 1.70, 1.89, and 2.13 yuan [3] Summary by Sections Financial Performance - As of Q3 2024, the bank's revenue, PPOP, and net profit attributable to the parent company have shown year-on-year growth rates of 5.3%, 18.6%, and 13.3% respectively for 2023, with projections for 2024 indicating a revenue of 79,453 million yuan and a net profit of 31,913 million yuan [5][10] - The bank's net interest income has slightly decreased by 0.3 percentage points compared to H1 2024, while net fee and commission income has significantly dropped by 23.2 percentage points due to slower growth in wealth management scale and high fee expenditures [1][2] Asset Quality - The bank's non-performing loan ratio remains stable at 0.89%, with a slight increase in the attention rate. The net generation rate of non-performing loans has improved, indicating stable asset quality [2] - The provision coverage ratio has decreased by 6.2 percentage points to 351%, while the loan-to-deposit ratio has slightly declined [2] Valuation and Price Target - The report employs a comparable company valuation method, assigning a 20% valuation premium to the company due to its strong asset expansion capability. The target price is set at 11.62 yuan per share, corresponding to a PB of 0.91 times for 2024 [3][6]

Investment Rating - The investment rating for the company is "Strong Buy" (maintained) [1][14] Core Views - The company has shown steady profit growth with a focus on cost control, achieving a 10.1% year-on-year increase in net profit for the first three quarters of 2024 [4][6] - Revenue growth has slightly slowed, with a 6.18% year-on-year increase in operating income, impacted by a decline in fee income [4][5] - The bank's asset quality remains stable, with a non-performing loan (NPL) ratio of 0.89% and a provision coverage ratio of 351% [6][11] Summary by Sections Financial Performance - For the first three quarters of 2024, the company reported operating income of 623 billion yuan, a 6.18% increase year-on-year, and a net profit attributable to shareholders of 282 billion yuan, up 10.1% [3][4] - The annualized return on equity (ROE) stands at 16.3% [3] - The total assets of the group reached 3.86 trillion yuan, reflecting a 15.6% year-on-year growth [3][5] Revenue and Cost Management - The revenue growth rate has decreased by 0.98 percentage points compared to the first half of 2024, primarily due to a decline in fee income, which fell by 11.9% year-on-year [4][5] - The net interest income increased by 1.5% year-on-year, with a net interest margin (NIM) of 1.49%, down 6 basis points from the previous quarter [5][8] Asset Quality - The NPL ratio remained stable at 0.89%, while the attention rate increased to 1.45%, indicating some retail risk disturbances [6][11] - The provision coverage ratio decreased slightly but remains high at 351%, ensuring strong risk mitigation capabilities [6][11] Future Outlook - The company is expected to maintain a positive growth trajectory, with projected earnings per share (EPS) of 1.73, 1.92, and 2.15 yuan for 2024 to 2026, respectively, reflecting growth rates of 10.6%, 11.1%, and 11.6% [7][10] - The current stock price corresponds to a price-to-book (P/B) ratio of 0.72x for 2024, indicating potential for value appreciation [7][10]

Investment Rating - The report maintains a "Recommend" rating for Jiangsu Bank (600919) with a target price of 10.22 CNY, compared to the current price of 9.02 CNY [1][2]. Core Views - Jiangsu Bank achieved a steady double-digit growth in net profit, with a year-on-year increase of 10.1% in the first three quarters of 2024, reaching a net profit of 28.24 billion CNY [1]. - The bank's operating income for Q3 2024 was 20.68 billion CNY, showing a recovery in revenue growth, primarily driven by a significant increase in non-interest income, which rose by 35.1% year-on-year [1]. - The bank's loan structure is improving, with a focus on balancing corporate and retail loans, as corporate loan growth has slowed down while retail loan demand shows signs of recovery [1][2]. Financial Performance Summary - For the first three quarters of 2024, Jiangsu Bank reported total operating income of 62.3 billion CNY, a 6.2% increase year-on-year, and a net profit attributable to shareholders of 28.24 billion CNY, a 10.1% increase year-on-year [1][3]. - The bank's non-performing loan (NPL) ratio remained stable at 0.89%, with a provision coverage ratio of 351%, indicating strong risk mitigation capabilities [1][3]. - The bank's interest margin for Q3 2024 was 1.71%, reflecting a decrease compared to previous quarters, primarily due to competitive pricing in corporate loans [1][3]. Future Outlook - The report projects revenue growth rates of 6.3%, 4.0%, and 9.6% for 2024, 2025, and 2026 respectively, with net profit growth rates of 10.2%, 7.3%, and 7.9% for the same periods [1][2]. - The bank's capital strength is expected to improve further with the conversion of 20 billion CNY of convertible bonds in 2023, enhancing its capacity for credit expansion [1][3].

Investment Rating - Maintains a "Recommend" rating with a target price of 9.02 RMB [3][4] Core Views - Jiangsu Bank's 24Q1-3 revenue reached 62.3 billion RMB, a YoY increase of 6.2%, while net profit attributable to shareholders grew by 10.1% YoY to 28.2 billion RMB [1] - The bank's asset expansion accelerated, with total assets and liabilities increasing by 15.6% and 15.0% YoY respectively by the end of 24Q3 [2] - The non-performing loan (NPL) ratio remained stable at 0.89%, and the provision coverage ratio stood at 351%, indicating strong risk resilience [2] Financial Performance - Net interest income for 24Q1-3 increased by 1.5% YoY, supported by active asset expansion, while non-interest income saw a significant rise of 26.5% YoY [1] - Corporate loans grew by 18.8% compared to the end of 2023, while personal loans and bill financing decreased by 0.8% and 2.0% respectively [2] - The bank's EPS is projected to be 1.73, 1.92, and 2.12 RMB for 2024, 2025, and 2026 respectively, with a P/B ratio of 0.7x for 2024 [3] Asset Quality and Risk Management - The NPL ratio remained stable at 0.89%, with a slight increase in the attention rate to 1.45% by the end of 24Q3 [2] - The provision coverage ratio decreased slightly to 351%, but remains at a high level, ensuring strong risk absorption capacity [2] Future Outlook - Benefiting from stable local economic growth and industrial advantages, Jiangsu Bank's corporate business is expected to maintain steady growth [3] - The bank's asset quality is stable, and its provision coverage ratio remains high, supporting continued profit growth in the future [3] Financial Projections - Revenue is expected to grow at a CAGR of 6.8% from 2024 to 2026, reaching 92.3 billion RMB by 2026 [3] - Net profit attributable to shareholders is projected to grow at a CAGR of 10.7% over the same period, reaching 39 billion RMB by 2026 [3]

Investment Rating - The report maintains a "Buy" rating for Jiangsu Bank (600919.SH) with a current price of 9.02 CNY [2]. Core Views - Jiangsu Bank has accelerated its scale expansion and demonstrated strong resilience in performance, with revenue growth of 6.2% year-on-year and net profit growth of 10.1% in the first three quarters of 2024 [4][6]. - The bank's non-interest income grew by 17% year-on-year, although its proportion of total revenue decreased to 33% [10]. - The bank's asset quality remains strong, with a non-performing loan (NPL) ratio of 0.89% and a provision coverage ratio of 351% as of the end of Q3 2024 [11][19]. Summary by Sections Financial Performance - Jiangsu Bank achieved a revenue of 623 billion CNY and a net profit of 282 billion CNY in the first three quarters of 2024, reflecting year-on-year growth rates of 6.2% and 10.1% respectively [4][6]. - The bank's return on average equity (ROAE) was 16.33%, a decrease of 1.8 percentage points year-on-year [4]. Revenue Composition - The growth rates for net interest income and non-interest income were 1.5% and 17.1% respectively, with a slight decline compared to the first half of 2024 [6]. - Non-interest income contributed significantly to revenue, with net fees and commissions at 38 billion CNY, down 12% year-on-year, while other non-interest income reached 168 billion CNY, up 27% year-on-year [10]. Asset Quality - The NPL ratio stood at 0.89% at the end of Q3 2024, with a provision coverage ratio of 351%, indicating strong risk mitigation capabilities [11][19]. - The bank's credit impairment losses for the quarter were 47 billion CNY, reflecting a year-on-year increase of 3 billion CNY [11]. Capital Adequacy - As of Q3 2024, the core tier 1 capital adequacy ratio was 9.3%, with total capital adequacy at 13.2% [11][19]. - The issuance of 10 billion CNY in perpetual bonds has effectively supplemented the bank's capital base [11]. Future Outlook - The bank is expected to benefit from the economic growth in Jiangsu province, with a focus on key sectors such as advanced manufacturing and small enterprises [12]. - Earnings per share (EPS) forecasts for 2024-2026 are projected at 1.79, 2.00, and 2.20 CNY respectively, with the current price corresponding to a price-to-book (PB) ratio of 0.7 and a price-to-earnings (PE) ratio of 5.0 [12][13].