NJBK(SH:601009) Xiangcai Securities·2024-08-09 12:01Investment Rating - The investment rating for the company is "Accumulate" (首次覆盖) [1] Core Views - The company's performance growth exceeded expectations, with non-interest income contributing significantly [1][3] - The bank's corporate business is expanding steadily, supported by a resilient regional economy [3][4] - Cost-saving effects are becoming evident as the bank manages its liabilities effectively [3][4] - The bank is enhancing its asset quality through increased efforts in non-performing asset disposal [3][4] Summary by Relevant Sections Performance Overview - In H1 2024, the bank's revenue growth reached 7.9%, an increase of 5% from Q1 2024, while net profit growth was 8.5%, up approximately 3% from Q1 2024 [3] - Non-interest income grew significantly by 25.5% year-on-year, driven by improved contributions from bond investment fair value changes and a 13.3% increase in fee income [3] Business Expansion - The bank primarily operates in Jiangsu province, with loan balances in Nanjing and other Jiangsu areas accounting for 25.73% and 59.54%, respectively [3] - Total assets, loans, and deposits grew by 11.7%, 13.5%, and 4.2% year-on-year, respectively, with corporate loans increasing by 12.7% since the beginning of the year [3][4] Cost Management - The average yield on assets decreased by 16 basis points due to asset repricing and declining market interest rates, while deposit costs fell by 8 basis points [3] - The overall cost of liabilities decreased by 7 basis points, indicating potential for further reductions in the future [3][4] Asset Quality - The bank's non-performing loan (NPL) ratio was 0.83%, down 0.07 percentage points from the end of the previous year, with a coverage ratio of 345.02% [3][4] - The bank's proactive approach to non-performing asset disposal has helped maintain stable asset quality [3][4] Shareholder Developments - BNP Paribas increased its stake in the bank, holding 17.68% of shares, which may enhance the bank's operational management and risk control capabilities [4] Financial Projections - The bank's projected net profit growth rates for 2024 to 2026 are 8.1%, 7.6%, and 6.9%, respectively, with corresponding EPS estimates of 1.95, 2.09, and 2.24 yuan [4][5]