ZRCBANK(SZ:002839) Jin Rong Jie·2025-03-31 08:52Core Insights - Zhangjiagang Bank (002839) reported growth in both revenue and net profit for the year 2024, alongside an expansion in asset size, but faces challenges such as a significant drop in interest income and negative operating cash flow [1][4]. Financial Performance - As of the end of 2024, the total assets of Zhangjiagang Bank reached 218.91 billion yuan, an increase of 5.69% compared to the previous year [1]. - The bank's operating revenue for 2024 was 4.711 billion yuan, up 3.75% year-on-year, while the net profit attributable to shareholders was 1.879 billion yuan, reflecting a 5.13% increase [1]. - Interest income decreased significantly, with net interest income at 3.379 billion yuan, down 12.55% year-on-year, and the net interest margin fell from 1.99% in 2023 to 1.62% in 2024, a decline of 0.37 percentage points [1]. Income Structure - Non-interest income showed significant volatility, with investment income rising to 1.290 billion yuan, a substantial increase of 176.81% year-on-year, attributed to a large increase in the scale of bond trading accounts [1]. - Fair value changes resulted in a loss of 104 million yuan, contrasting with a profit of 63 million yuan in the previous year, primarily due to valuation changes in trading financial assets [1]. Asset Quality - The non-performing loan ratio remained stable at 0.94%, consistent with the previous year, indicating a low level of asset quality risk [2]. - The provision coverage ratio decreased to 376.03%, down by 48.20 percentage points from the previous year [2]. - Capital adequacy ratios were reported at 13.57%, with a tier 1 capital ratio of 12.40% and a core tier 1 capital ratio of 11.08% [2]. Cash Flow Analysis - The bank experienced a rare negative operating cash flow of -420 million yuan for 2024, a decline of 123.38% compared to the previous year [3][4]. - The negative cash flow indicates that the bank's daily operations were unable to cover operational expenses, suggesting potential pressures in cash collection and fund utilization [4]. - The decline in cash flow was primarily due to reduced cash inflows from deposit absorption and the sale of repurchase agreements compared to the previous period [4].