Investment Rating - The report maintains a "Buy" rating for Changshu Bank [2][8][12] Core Views - Changshu Bank's performance in the first half of 2024 exceeded expectations, with a revenue growth of 12% year-on-year and a net profit growth of 19.6% [2][3][8] - The bank's asset quality remains strong, with a non-performing loan (NPL) ratio stable at 0.76% in Q2 2024, and a provision coverage ratio of approximately 539% [2][3][8] Summary by Sections Market Data - As of August 20, 2024, the closing price is CNY 6.90, with a one-year high/low of CNY 9.05/CNY 6.24 [1] - The bank's market capitalization is CNY 20,063 million, with a price-to-book (PB) ratio of 0.73 [1][8] Financial Performance - Total revenue for 2024E is projected at CNY 10,776.46 million, with a year-on-year growth rate of 9.18% [2] - Net profit attributable to shareholders is expected to reach CNY 3,849.39 million in 2024E, reflecting a growth rate of 17.31% [2] - The bank's return on equity (ROE) is forecasted to be 14.29% in 2024E [2] Revenue Drivers - Interest income increased by 6% in 1H24, contributing 5.4 percentage points to revenue growth, despite a narrowing interest margin [3][9] - Non-interest income surged by 57%, driven by nearly doubling investment income, contributing 6.6 percentage points to revenue growth [3][9] Loan and Deposit Trends - Loan growth slowed to 11.3% in Q2 2024, with corporate loans accounting for nearly 70% of new loans [4][7] - Deposit growth was robust at 16.7% in Q2 2024, with a focus on optimizing deposit structure to reduce funding costs [4][7] Asset Quality - The bank's NPL generation rate is estimated at 0.9% for 1H24, reflecting a slight increase from 0.6% in 2023, but remains manageable [8][12] - The bank has effectively managed asset quality without utilizing existing provisions, relying on incremental provisions for risk mitigation [8][12] Investment Outlook - The report expresses confidence in Changshu Bank's ability to maintain strong revenue and profit growth, supporting a valuation premium recovery [8][12] - The forecast for net profit growth is maintained at 17.3% for 2024, with slight adjustments for 2025-2026 due to revised margin and credit cost assumptions [8][12]

Investment Rating - The investment rating for Changshu Bank is "Buy - A" with a target price of 9.32 CNY, which corresponds to a 0.90X price-to-book ratio for 2024 [3][8]. Core Views - Changshu Bank's performance in the first half of 2024 showed a revenue growth rate of 12.03%, with a pre-provision profit growth rate of 22.76% and a net profit growth rate of 19.58%, indicating strong growth that aligns with expectations [1][8]. - The growth in net profit for the second quarter of 2024 was primarily supported by scale expansion and cost reduction, while narrowing net interest margins and increased provisioning pressures negatively impacted performance [1][6]. Financial Performance Summary - **Revenue and Profitability**: - Revenue for the first half of 2024 increased by 12.03% year-on-year, with a net profit growth of 19.58% [1][9]. - The second quarter saw a net profit growth of 19.31%, driven by asset growth and cost management [1]. - **Asset and Loan Growth**: - Total assets grew by 15.57% year-on-year by the end of the second quarter of 2024, with a notable increase in interest-earning assets [2]. - Corporate loans (excluding discounts) increased by 14.01% year-on-year, while retail loan growth was below expectations [2][9]. - **Interest Margin and Non-Interest Income**: - The net interest margin for the second quarter of 2024 was 2.75%, reflecting a year-on-year decline of 23 basis points [6]. - Non-interest income grew by 46.70% year-on-year in the second quarter, significantly contributing to revenue growth [6][9]. - **Cost Management**: - The cost-to-income ratio decreased to 35.10%, down 6.77 percentage points year-on-year, positively impacting net profit growth [6][9]. - **Asset Quality**: - The non-performing loan ratio stood at 0.76% at the end of the first half of 2024, remaining stable compared to the previous quarter [7]. - The provision coverage ratio was 538.81%, indicating strong risk resistance capabilities [7][9]. Future Outlook - The bank is expected to maintain robust growth in the second half of 2024, supported by the gradual easing of interest income pressures and strong asset quality [7][8].

Financial Performance - Total operating income for the first half of 2024 reached RMB 5,505,688 thousand, an increase of 12.03% compared to RMB 4,914,337 thousand in the same period of 2023[16]. - Net profit attributable to shareholders of the listed company was RMB 1,734,471 thousand, reflecting a growth of 19.58% from RMB 1,450,469 thousand in the first half of 2023[16]. - Net profit attributable to shareholders after deducting non-recurring gains and losses was RMB 1,738,217 thousand, up 20.22% from RMB 1,445,837 thousand in the same period last year[16]. - Net cash flow from operating activities surged to RMB 16,745,436 thousand, a significant increase of 1,417.65% compared to RMB 1,103,378 thousand in the first half of 2023[16]. - Non-interest income surged to 904.149 million yuan, marking a significant increase of 56.59% compared to the previous year[35]. - Interest income for the first half of 2024 was 8.212 billion yuan, an increase of 8.60% from 7.562 billion yuan in the same period of 2023[37]. - The total comprehensive income for the first half of 2024 was RMB 1,559,263 thousand, slightly up from RMB 1,513,870 thousand in the same period of 2023[139]. Asset and Liability Management - Total assets increased to CNY 367.30 billion, up from CNY 334.46 billion, representing a growth of 9.25% year-over-year[17]. - Total liabilities rose to CNY 338.91 billion, compared to CNY 307.33 billion, marking an increase of 10.33% year-over-year[17]. - The bank's total assets amounted to CNY 2,959,003 thousand as of the reporting date[81]. - The bank's total liabilities amounted to RMB 338,911,527 thousand, up from RMB 307,325,494 thousand, indicating a growth of about 10.3%[133]. - Customer deposits increased to RMB 289,467,349 thousand, compared to RMB 254,452,879 thousand at the end of 2023, reflecting a rise of approximately 13.7%[133]. Loan and Credit Quality - Total loans increased to CNY 238.93 billion, up from CNY 222.44 billion, indicating a growth of 7.67% year-over-year[17]. - The non-performing loan ratio stood at 0.76%, slightly up from 0.75%[18]. - The loan non-performing ratio stood at 0.76%, an increase of 0.01 percentage points from the beginning of the year[33]. - The credit card segment saw a significant increase in NPL ratio to 2.74% from 1.40%, with total credit card loans at CNY 3,604,894 thousand[64]. - The total amount of loans classified as normal loans was 233.86 billion RMB, accounting for 97.88% of total loans[63]. Capital and Equity - The total equity attributable to shareholders of the parent company was 26.41 billion RMB, reflecting a growth of 4.16%[60]. - The bank's equity attributable to shareholders reached RMB 26,410,698 thousand, up from RMB 25,356,407 thousand, marking an increase of approximately 4.2%[133]. - The total number of ordinary shares increased to 3,014,980,074, with a capital reserve increase of 274,088,992 shares, representing a 10% increase in total shares[115]. - The diluted earnings per share remained at CNY 0.47, indicating stable performance despite share increases[116]. Risk Management - Non-performing loan ratio stood at 0.76%, which is an increase of 0.01 percentage points compared to the end of the previous year[62]. - The bank has established a risk management framework that includes a unified risk control team and a digital risk control system covering five major business lines[29]. - The bank has strengthened credit risk management by optimizing the risk preference limit system and implementing differentiated credit policies for various industries and regions[91]. - The bank's liquidity risk management aims to meet regulatory requirements and ensure timely fulfillment of payment obligations[92]. Digital Transformation and Innovation - The company has initiated a digital transformation plan (2023-2025) with goals of "four enhancements and two reductions," establishing core technologies in micro-loan integration, risk control, and data analysis[30]. - The company is focused on digital transformation and enhancing service quality through the development of a diverse product system and smart scene construction[104]. - The company launched the "Changyi Rong" online product to provide simplified funding support for clients, enhancing digital operational capabilities[106]. - The company completed the migration of nearly 2,000 application environments to the Yangu Data Center, enhancing its digital infrastructure[107]. Corporate Governance and Compliance - The company is focused on maintaining a high level of transparency and governance, as evidenced by the revisions to its articles of association and board meeting rules[125]. - The compliance management framework includes a multi-tiered structure involving the board, supervisory committee, and all employees, ensuring accountability and effective risk management[99]. - The company has implemented a robust anti-money laundering and counter-terrorism financing internal control system, including a monitoring system to mitigate associated risks[100]. Strategic Initiatives - The company is actively pursuing mergers and acquisitions in village and town banking to enhance its operational capacity and market reach[28]. - The company is committed to supporting rural revitalization, increasing credit support in key areas, and implementing grid management for comprehensive coverage[112]. - The bank plans to expand its digital banking services to enhance customer experience and operational efficiency in the coming year[133].

证券代码：601128 证券简称：常熟银行 公告编号：2024-030 江苏常熟农村商业银行股份有限公司 第八届董事会第六次会议决议公告 江苏常熟农村商业银行股份有限公司（以下简称"本行"）董事会及全体董 事保证本公告内容不存在任何虚假记载、误导性陈述或者重大遗漏，并对其内容 的真实性、准确性和完整性承担个别及连带责任。 三、2024 年半年度第三支柱信息披露报告 同意 13 票，反对 0 票，弃权 0 票。 一、2024 年半年度报告及摘要 同意 13 票，反对 0 票，弃权 0 票。 具体内容详见本行同日披露在上海证券交易所网站的《常熟银行 2024 年半 年度报告》和《常熟银行 2024 年半年度报告摘要》。 本议案已经本行第八届董事会审计与消费者权益保护委员会第三次会议审 议通过。 二、修订《操作风险管理政策》 同意 13 票，反对 0 票，弃权 0 票。 本行第八届董事会第六次会议于 2024 年 8 月 20 日以现场会议的方式召开， 会议通知及会议文件已于 2024 年 8 月 9 日发出。会议由薛文董事长主持，会议 应到董事 13 人，实到董事 13 人，全体监事和部分高管列席了会议。会议符合 ...

证券代码：601128 证券简称：常熟银行 公告编号：2024-031 江苏常熟农村商业银行股份有限公司 第八届监事会第五次会议决议公告 江苏常熟农村商业银行股份有限公司（以下简称"本行"）监事会及全体监 事保证本公告内容不存在任何虚假记载、误导性陈述或者重大遗漏，并对其内容 的真实性、准确性和完整性承担个别及连带责任。 本行第八届监事会第五次会议于 2024 年 8 月 20 日以现场会议方式召开，会 议通知及会议文件已于 2024 年 8 月 9 日以电子邮件方式发出。会议由宋毅监事 长主持，会议应到监事 6 人，实到监事 6 人。会议符合《公司法》等法律法规及 本行《章程》的有关规定。 会议审议并通过了如下议案： 一、2024 年半年度报告及摘要审核意见 监事会出具如下审核意见： 同意 6 票，反对 0 票，弃权 0 票。 同意 6 票，反对 0 票，弃权 0 票。 （1）本行《2024 年半年度报告及摘要》的编制和审议程序符合《公司法》 等法律、法规以及本行《章程》和相关内部管理制度的规定； （2）本行《2024 年半年度报告及摘要》的内容与格式符合中国证监会和上 海证券交易所的各项规定，所包含的信息 ...

江苏常熟农村商业银行股份有限公司 关于完成法定代表人及注册资本工商变更登记的公告 江苏常熟农村商业银行股份有限公司（以下简称"本行"）董事会及全体董 事保证本公告内容不存在任何虚假记载、误导性陈述或者重大遗漏，并对其内容 的真实性、准确性和完整性承担个别及连带责任。 证券代码：601128 证券简称：常熟银行 公告编号：2024-029 根据本行《章程》的有关规定，董事长为本行的法定代表人。本行第八届董 事会第一次会议选举薛文先生为本行董事长，其董事长任职资格已获得国家金融 监督管理总局苏州监管分局核准。 江苏常熟农村商业银行股份有限公司董事会 2024 年 8 月 19 日 因可转债转股及资本公积转增，本行注册资本相应增加，本行就变更注册资 本事项向国家金融监督管理总局苏州监管分局提出申请并获得核准。 近日，本行已完成法定代表人及注册资本的工商变更登记以及本行《章程》 修订的工商备案手续，并取得苏州市数据局换发的《营业执照》，本行法定代表 人变更为薛文先生，注册资本由人民币 274,085.5925 万元变更为人民币 301,497.8914 万元，其他登记事项不变。 特此公告。 ...

证券代码：601128 证券简称：常熟银行 公告编号：2024-028 江苏常熟农村商业银行股份有限公司关于修订《公司章程》 获国家金融监督管理总局苏州监管分局核准的公告 江苏常熟农村商业银行股份有限公司（以下简称"本行"）董事会及全体董 事保证本公告内容不存在任何虚假记载、误导性陈述或者重大遗漏，并对其内容 的真实性、准确性和完整性承担个别及连带责任。 江苏常熟农村商业银行股份有限公司董事会 2024年8月2日 本行2023年年度股东大会审议通过了关于《修订<公司章程>》的议案。近日， 本行收到《国家金融监督管理总局苏州监管分局关于江苏常熟农村商业银行股份 有限公司修改章程的批复》（苏州金复〔2024〕118号），核准本行修订后的《公 司章程》，本行随后将履行工商备案等相关手续。 核准后的《公司章程》全文详见上海证券交易所网站(www.sse.com.cn)和本 行网站（www.csrcbank.com）。 特此公告。 ...

江苏常熟农村商业银行股份有限公司 章 程 （2024 年修订） （由苏州金复〔2024〕118 号核准并生效） | 第一章 总 则 | | 2 | | --- | --- | --- | | 第二章 经营宗旨和经营范围 | | 4 | | 股份和注册资本 第三章 | | 5 | | 第一节 | 股份发行 | 5 | | 第二节 | 股份增减和回购 | 6 | | 第三节 | 股份转让 | 8 | | 第四章 股东和股东大会 | | 9 | | 第一节 | 股东 | 9 | | 第二节 | 股东大会一般规定 | 16 | | 第三节 | 股东大会的召集 | 19 | | 第四节 | 股东大会的提案与通知 | 21 | | 第五节 | 股东大会的召开 | 24 | | 第六节 | 股东大会的表决和决议 | 27 | | 第五章 党组织（党委） | | 32 | | 第六章 董事会 | | 33 | | 第一节 | 董事 | 33 | | 第二节 | 董事会 | 39 | | 第七章 | 行长及其他高级管理人员 | 47 | | 第八章 监事会 | | 50 | | 第一节 | 监事 | 50 | | 第二节 | ...

证券代码：601128 证券简称：常熟银行 公告编号：2024-027 江苏常熟农村商业银行股份有限公司 第八届董事会第五次会议决议公告 江苏常熟农村商业银行股份有限公司（以下简称"本行"）董事会及全体董 事保证本公告内容不存在任何虚假记载、误导性陈述或者重大遗漏，并对其内容 的真实性、准确性和完整性承担个别及连带责任。 聘任程鹏飞先生为本行副行长。 程鹏飞，男，1979 年 7 月出生，本科学历、硕士学位。历任本行赵市支行 柜员，业务拓展部、银行卡部、业务发展部、资金部办事员，资金部、金融市场 部总经理助理，金融市场部副总经理，资产管理部副总经理、总经理，资金营运 中心副总裁兼交易银行部总经理，资金营运中心副总裁兼交易银行部总经理、大 义支行行长。现任本行党委委员、资金营运中心总裁兼交易银行部总经理。 同意 13 票，反对 0 票，弃权 0 票。 程鹏飞先生的任职资格尚需国家金融监督管理总局苏州监管分局核准。 特此公告。 江苏常熟农村商业银行股份有限公司董事会 2024 年 7 月 31 日 本行第八届董事会第五次会议于 2024 年 7 月 31 日以现场和视频相结合的方 式召开，会议通知及会议文件已于 ...

吴铁军先生已确认其与本行董事会无不同意见，亦无任何其他事项需要通知 本行股东及债权人。 吴铁军先生在担任本行副行长期间，恪尽职守，在提升风险管控能力、强化 财务精细化管理、深化推进合规建设等方面勤勉尽责，为本行高质量发展发挥了 积极作用。本行董事会对吴铁军先生任职期间对本行做出的贡献表示衷心感谢。 特此公告。 证券代码：601128 证券简称：常熟银行 公告编号：2024-026 江苏常熟农村商业银行股份有限公司 关于副行长吴铁军先生辞任的公告 江苏常熟农村商业银行股份有限公司（以下简称"本行"）董事会及全体董 事保证本公告内容不存在任何虚假记载、误导性陈述或者重大遗漏，并对其内容 的真实性、准确性和完整性承担个别及连带责任。 近日，本行董事会收到吴铁军先生的书面辞职报告。吴铁军先生因工作调动， 辞去本行副行长职务。辞职报告自送达本行董事会时即生效，吴铁军先生辞任后 将不在本行任职。 江苏常熟农村商业银行股份有限公司董事会 2024年7月31日 ...