Bank Of Jiangsu(SH:600919) Guotai Junan Securities·2024-08-20 06:39Investment Rating - The investment rating for Jiangsu Bank is "Buy" with a target price of 9.16, up from the previous forecast of 8.55 [3][9]. Core Views - Jiangsu Bank is transitioning from a high-growth phase to a stable development phase with high-quality growth. The bank's performance in the mid-year report aligns with expectations, and future profit growth is projected to be sustainable [9]. - The bank's net interest income and net fee income growth turned positive in Q2, with net interest income increasing by 4.4% and net fee income by 53.2%. This is attributed to resilient growth in deposit and loan scales due to regional economic benefits [9]. - The bank's asset quality remains stable, although retail loan risks are still emerging. The non-performing loan (NPL) ratio remained flat at 0.89% as of the end of Q2, but the attention and overdue rates have increased [9]. Financial Summary - Total assets reached 2,980,295 million, with total loans at 1,893,127 million and total deposits at 1,875,335 million. The core Tier 1 capital adequacy ratio stands at 9.46% [6]. - Revenue for 2024 is projected at 80,131 million, with a growth rate of 7.9%. Net profit attributable to the parent company is expected to be 31,813 million, reflecting a growth of 10.7% [8][9]. - The bank's net interest margin is expected to remain stable, with a slight decrease of 3 basis points to 1.51% [9]. Loan and Deposit Performance - Loan growth is robust, with a year-on-year increase of 11.9%. Corporate loans contributed significantly to this growth, particularly in sectors like business leasing and manufacturing [9]. - Deposits grew by 11.5% year-on-year, with a notable increase in corporate time deposits by 31.2% [9]. Asset Quality - The overall asset quality is stable, with a high provision coverage ratio of 357%. However, retail loan risks are under scrutiny, as the NPL ratio for retail loans increased to 1.03% [9].