Bank Of Jiangsu(SH:600919) GF SECURITIES·2024-08-19 07:08Investment Rating - The report maintains a "Buy" rating for Jiangsu Bank (600919.SH) with a target price of 9.98 CNY per share, reflecting a price-to-book (PB) ratio of 0.7 times for the year 2024 [5]. Core Insights - Jiangsu Bank's 2024 mid-year report shows revenue, pre-provision operating profit (PPOP), and net profit attributable to shareholders increased by 7.2%, 5.1%, and 10.1% year-on-year, respectively. The growth rates have declined compared to Q1 2024, indicating a significant drop in revenue growth but maintaining double-digit net profit growth, showcasing management's confidence in achieving annual targets [2][3]. Summary by Sections Financial Performance - In Q2 2024, revenue growth slowed to 2.9% from 11.7% in Q1, primarily due to a 10.7% decrease in other non-interest income. However, net profit growth remained stable at 10.1%, with a 29% reduction in impairment losses compared to the previous quarter [3]. - The reported net interest margin (NIM) for H1 2024 is 1.90%, a year-on-year decrease of 38 basis points, but the actual narrowing is less severe at 17 basis points when calculated based on net interest income over average earning assets [3]. - Fee income grew by 11.3% in H1 2024, driven by an increase in wealth management scale, which reached 604.5 billion CNY, a 16% increase from the beginning of the year [3]. Asset Quality - As of June 2024, the non-performing loan (NPL) ratio stands at 0.89%, unchanged from December 2023, with a provision coverage ratio of 357%, down 32.3 percentage points from the previous period. The new NPL generation rate is estimated at 1.34%, reflecting a year-on-year increase of 38 basis points [3][12]. Earnings Forecast - The forecast for net profit growth is 10.2% for 2024 and 11.3% for 2025, with earnings per share (EPS) projected at 2.09 CNY and 2.34 CNY, respectively. The book value per share (BVPS) is expected to be 14.26 CNY and 16.09 CNY for the same years [3].