BANK OF SUZHOU(SZ:002966) Xinda Securities·2024-09-01 09:21Investment Rating - The investment rating for Suzhou Bank is not explicitly stated in the provided documents, but the analysis indicates a positive outlook based on performance metrics and growth potential. Core Insights - Suzhou Bank reported a revenue of 6.388 billion yuan for the first half of 2024, representing a year-on-year increase of 1.88%, and a net profit attributable to shareholders of 2.953 billion yuan, up 12.10% year-on-year [1] - The bank's total assets reached 659.5 billion yuan, growing by 13.7% year-on-year, with a notable increase in corporate loans by 25.8% [1] - The bank is focusing on key sectors such as government affairs, technology innovation, green finance, and inclusive finance to enhance service quality for the real economy [1] - Non-interest income showed strong growth, contributing to the rapid increase in net profit, with non-interest income reaching 2.24 billion yuan, up 12.5% year-on-year [1] Financial Performance Summary - Total revenue for Suzhou Bank is projected to grow from 11,762.96 million yuan in 2022 to 13,990.12 million yuan by 2026, with a compound annual growth rate (CAGR) of approximately 7.51% [2] - The net profit attributable to shareholders is expected to increase from 3,918.44 million yuan in 2022 to 6,342.44 million yuan in 2026, reflecting a growth rate of 11.76% in 2024 [3] - The bank's net interest margin was reported at 1.48%, with a slight decline of 4 basis points compared to the previous quarter [1] - The non-performing loan (NPL) ratio remained stable at 0.84%, indicating strong asset quality management [1] Growth Projections - The bank's net profit growth is forecasted at 11.76% for 2024, followed by 11.48% in 2025 and 10.65% in 2026 [3] - Earnings per share (EPS) is projected to rise from 1.07 yuan in 2022 to 1.73 yuan by 2026, with a corresponding decrease in price-to-earnings (P/E) ratio from 5.32 to 4.05 over the same period [3][12] - The bank's capital adequacy ratios remain robust, with a core tier 1 capital adequacy ratio of 9.43% as of mid-2024 [1]