BANK OF SUZHOU(SZ:002966) GOLDEN SUN SECURITIES·2024-09-01 08:17Investment Rating - The investment rating for Suzhou Bank is "Buy" (maintained) [2] Core Views - Suzhou Bank's performance in the first half of 2024 shows stable growth in revenue and profit, with operating income at 6.4 billion yuan, a year-on-year increase of 1.9%, and net profit attributable to shareholders at 3 billion yuan, up 12.1% year-on-year [2][4] - The bank maintains excellent asset quality, with a non-performing loan (NPL) ratio of 0.84%, remaining stable compared to the previous quarter [2][4] - The bank's net interest margin has decreased to 1.48%, with interest income declining by 3.0% year-on-year [2][4] Financial Performance - Revenue and profit growth rates for the first half of 2024 are 1.9% and 12.1%, respectively, showing stability compared to Q1 [2] - Net interest income decreased by 3.0% year-on-year, while non-interest income from fees and commissions fell by 20% [2][4] - Other non-interest income increased significantly by 36.2%, driven by investment income and fair value changes [2][4] Asset Quality - The bank's asset quality remains robust, with a non-performing loan ratio of 0.84% and a focus on maintaining low levels of non-performing loans across various segments [2][4] - The NPL generation rate for the first half of 2024 is 0.38%, indicating a slight increase compared to the previous year [2][4] Balance Sheet - As of June 2024, total assets reached 659.5 billion yuan, with loans amounting to 325.1 billion yuan, reflecting a slight increase [3][4] - Total deposits reached 415.2 billion yuan, with a year-to-date increase of 51.4 billion yuan, indicating strong deposit growth [4] Investment Recommendation - Suzhou Bank is positioned as a high-quality regional city commercial bank with strong asset quality and profit growth, suggesting a favorable outlook for continued high-quality development [4]