BANK OF SUZHOU(SZ:002966) Guoxin Securities·2024-08-31 10:30Investment Rating - The investment rating for Suzhou Bank is maintained at "Neutral" [4][7]. Core Views - The bank's net profit for the first half of 2024 reached 2.95 billion yuan, a year-on-year increase of 12.1%, indicating a strong growth trajectory despite a slight decline in net interest margin [1]. - Non-interest income has shown significant growth, with other non-interest income increasing by 36% year-on-year, contributing positively to overall revenue growth [1]. - The bank's total assets grew by 13.7% year-on-year to 659.5 billion yuan, with loans and deposits increasing by 14.5% and 14.9% respectively, reflecting balanced growth [1]. Financial Performance Summary - Revenue and Profit: In H1 2024, the bank achieved operating income of 6.39 billion yuan, up 1.9% year-on-year, while net profit attributable to shareholders was 2.95 billion yuan, up 12.1% year-on-year [1][5]. - Earnings Per Share (EPS): The diluted EPS for 2024 is projected at 1.38 yuan, with expected growth rates of 10.2%, 9.7%, and 9.5% for 2024, 2025, and 2026 respectively [1][5]. - Return on Equity (ROE): The weighted average ROE for H1 2024 was 13.3%, a slight decrease of 0.4 percentage points year-on-year [1]. Asset Quality and Capital Adequacy - Asset Quality: The non-performing loan (NPL) ratio stood at 0.84% at the end of Q2 2024, unchanged from the beginning of the year, indicating strong asset quality [1][5]. - Provision Coverage Ratio: The provision coverage ratio was 487% at the end of Q2 2024, despite a decrease of 36 percentage points from the beginning of the year, still reflecting a high level of provisioning [1][5]. - Capital Adequacy: The core Tier 1 capital adequacy ratio was 9.43%, remaining stable compared to the beginning of the year [1].