Changshu Bank(601128) 东海证券·2024-08-22 14:00Investment Rating - The report maintains a "Buy" rating for the company [2][6] Core Views - The company's performance shows resilience in net interest margin despite pressures from deposit termization and credit demand [4][5] - The overall asset quality remains strong, with a non-performing loan (NPL) ratio of 0.76%, stable compared to the previous quarter [4][6] - The bank's investment income continues to grow significantly, contributing approximately 18% to total revenue [5][6] Summary by Sections Financial Performance - For the first half of 2024, the company achieved operating income of 5.506 billion yuan, a year-on-year increase of 12.03%, and a net profit attributable to shareholders of 1.734 billion yuan, up 19.58% year-on-year [4][6] - As of June 30, 2024, total assets reached 367.303 billion yuan, reflecting a year-on-year growth of 15.57% [4][6] Loan and Deposit Trends - Loan growth in Q2 was weaker than seasonal trends, particularly in personal loans, while corporate loans continued to grow strongly [4][6] - The bank experienced robust deposit growth, with a notable increase in the proportion of time deposits, aligning with industry trends [4][6] Interest Margin and Asset Quality - The net interest margin for Q2 was 2.75%, a year-on-year decrease of 23 basis points, influenced by lower yields on interest-earning assets [4][6] - The bank's provision coverage ratio for non-performing loans stands at 538.81%, indicating a prudent approach to credit risk management [4][6] Future Outlook - The report projects operating income for 2024-2026 to be 10.779 billion, 11.654 billion, and 13.086 billion yuan respectively, with net profit estimates of 3.887 billion, 4.444 billion, and 5.115 billion yuan [6][7] - The bank's strong position in the small and micro retail market, along with a high proportion of time deposits, is expected to support future growth [6][7]