苏农银行：2024年半年报点评：业绩延续高增，资产质量稳健

Investment Rating - The report maintains a "Recommended" rating for Su Nong Bank, with a target price corresponding to 0.5 times the 2024 PB based on the closing price on August 27, 2024 [2][3]. Core Views - Su Nong Bank continues to show strong performance with a revenue growth of 8.6% year-on-year in the first half of 2024, supported by a significant increase in non-interest income, particularly investment income which grew by 115.9% [1][2]. - The bank's asset quality remains stable with a non-performing loan ratio of 0.91% and a provision coverage ratio of 443%, indicating solid risk mitigation capabilities [1][2]. - The bank is benefiting from its strategic expansion in the Suzhou area, with loans in this region growing by 13.4% year-on-year, outpacing overall loan growth [1][2]. Summary by Sections Financial Performance - In the first half of 2024, Su Nong Bank reported a revenue of 2.28 billion yuan and a net profit attributable to shareholders of 1.12 billion yuan, reflecting year-on-year increases of 8.6% and 15.6% respectively [1]. - The cost-to-income ratio improved to 27.1%, down 4.2 percentage points from the previous quarter, contributing positively to profit [1]. Credit and Asset Quality - Total assets and total loans grew by 9.2% and 8.8% year-on-year respectively, although the growth rates have slowed compared to the previous quarter [1]. - The bank's non-performing loan ratio remained stable at 0.91%, with a slight increase in the attention ratio to 1.19% [1][2]. Interest Margin and Pricing - The net interest margin decreased to 1.53%, down 21 basis points from the previous year, with loan yield at 3.97% and deposit cost rate at 1.96% [1][2]. - The bank's strategy to adjust deposit pricing is expected to continue improving funding costs [1]. Future Earnings Forecast - Earnings per share (EPS) are projected to be 1.10 yuan, 1.24 yuan, and 1.40 yuan for 2024, 2025, and 2026 respectively, with a consistent growth trajectory anticipated [2][3].