Zheng Quan Zhi Xing·2025-08-30 09:20Core Viewpoint - Suzhou Bank maintains resilient profitability and excellent asset quality, with a "buy" rating from Dongwu Securities based on its mid-2025 performance report [1][4]. Financial Performance - For H1 2025, Suzhou Bank reported operating income of 6.5 billion yuan, a year-on-year increase of 1.8%, with Q2 showing a 2.9% increase [2]. - The net profit attributable to shareholders was 3.13 billion yuan, up 6.2% year-on-year, with Q2 net profit increasing by 5.5% [2]. - As of the end of H1 2025, the net assets attributable to shareholders reached 58.6 billion yuan, reflecting a 10.7% increase from the beginning of the year [2]. - The weighted ROE for H1 2025 was 6.2%, a decrease of 0.5 percentage points year-on-year [2]. Revenue and Cost Management - Net interest income for H1 2025 increased by 2.7%, with Q2 showing a 6.2% increase, attributed to loan growth and declining deposit rates [2][3]. - Non-interest income remained flat year-on-year, with Q2 showing a 3% decline, primarily due to the decrease in fair value of trading financial assets [2]. - Operating expenses decreased by 3.7% year-on-year, indicating effective cost control [2]. Loan and Deposit Trends - The loan balance increased by 9% year-on-year, with loans accounting for 48.1% of total assets, a decrease of 1.8 percentage points [3]. - The proportion of corporate loans rose to 75.4%, with significant investments in manufacturing and leasing services [3]. - Total deposits reached 463.7 billion yuan, a year-on-year increase of 11% [3]. Asset Quality - The non-performing loan (NPL) ratio remained stable at 0.83%, with a slight increase in the NPL generation rate [3]. - The provision coverage ratio decreased by 9 percentage points to 438%, still leading the industry [3]. - The core Tier 1 capital adequacy ratio was 9.87%, and the total capital adequacy ratio was 14.57%, both significantly above regulatory requirements [3]. Profit Forecast and Investment Rating - The forecast for net profit attributable to shareholders for 2025-2027 is 5.44 billion, 5.32 billion, and 5.91 billion yuan, respectively [4]. - The current market capitalization corresponds to a 2025E PB of 0.70x, indicating a low valuation [4]. - The company is expected to enhance its capabilities across five areas, including integrated financial services and risk management [4].