苏州银行：2024年半年报点评：资产质量优异，业绩稳健增长

Investment Rating - The report maintains a "Recommended" rating for Suzhou Bank, with a target price corresponding to 0.6 times the 2024 PB based on the closing price on August 30, 2024 [3][4]. Core Views - Suzhou Bank's net profit attributable to shareholders increased by 12.1% year-on-year in the first half of 2024, driven by strong corporate credit demand and effective cost control on liabilities, which helped to narrow the decline in net interest margin [3]. - The bank's asset quality remains strong, with a non-performing loan (NPL) ratio of 0.84% and a low NPL generation rate of 0.47% annualized, indicating a solid foundation for sustained profit release [3][4]. Financial Performance Summary - In the first half of 2024, Suzhou Bank achieved revenue of 6.39 billion yuan, a year-on-year increase of 1.9%, and a net profit of 2.95 billion yuan, up 12.1% year-on-year [2]. - The bank's net interest income decreased by 3.0% year-on-year, while other non-interest income rose by 36.2%, becoming a major support for revenue [2]. - The bank's total assets and loan amounts grew by 13.7% and 14.5% year-on-year, respectively, although the growth rate showed a slight decline compared to the previous quarter [2]. Earnings Forecast - The expected earnings per share (EPS) for 2024, 2025, and 2026 are projected to be 1.39 yuan, 1.52 yuan, and 1.67 yuan, respectively [3][4]. - The report indicates a steady growth in net profit, with projected growth rates of 17.4%, 10.9%, 9.4%, and 9.8% for the years 2023 to 2026 [4][46]. Asset Quality Indicators - The non-performing loan ratio is expected to improve slightly, projected at 0.83% for 2024 and 0.81% for 2025 [47]. - The bank's provision coverage ratio is high at 487%, indicating robust risk mitigation capabilities [2][47]. Valuation Metrics - The price-to-earnings (P/E) ratio is projected to decrease from 6 in 2023 to 4 by 2026, while the price-to-book (P/B) ratio is expected to decline from 0.7 to 0.5 over the same period [4][46].