BANK OF SUZHOU(SZ:002966) KAIYUAN SECURITIES·2024-09-01 08:03Investment Rating - The investment rating for Suzhou Bank is "Buy" (maintained) [3][6][23] Core Views - Suzhou Bank's revenue and net profit showed stable growth in the first half of 2024, with revenue reaching 6.388 billion yuan (YoY +0.88%) and net profit attributable to shareholders at 2.953 billion yuan (YoY +12.10%) [6][8] - The bank's asset quality remains strong, with a non-performing loan (NPL) ratio of 0.84%, unchanged for four consecutive quarters, indicating effective risk management [8][19] - The report anticipates a slight decline in profit forecasts for 2024-2026 due to overall industry challenges, projecting net profits of 5.099 billion yuan, 5.754 billion yuan, and 6.497 billion yuan for the respective years [6][19] Financial Performance Summary - In Q2 2024, Suzhou Bank's revenue maintained a positive growth of 1.65% YoY, although net interest income decreased by 5.23% due to declining yields on interest-earning assets [6][7] - The bank's total assets reached 659.5 billion yuan, with a loan growth rate of 14.53%, reflecting a marginal slowdown [7][19] - Non-interest income for H1 2024 was 2.238 billion yuan, up 12.45% YoY, with Q2 showing a slight increase in fee and commission income [7][19] Asset Quality and Risk Management - The bank's asset quality is highlighted by a stable NPL ratio and a sufficient provision coverage ratio of 486.80%, ensuring a solid buffer against potential losses [8][19] - The report notes a slight increase in the attention rate to 0.88%, but overall risk remains manageable [8][19] Valuation Metrics - Current stock price corresponds to a price-to-book (PB) ratio of 0.5 for 2024 and 0.4 for 2026, indicating potential undervaluation given the bank's regional advantages and stable asset quality [6][19]