苏州银行：盈利稳健增长，资产质量保持平稳

Investment Rating - The report maintains a "Strong Buy" rating for Suzhou Bank, expecting the stock to outperform the market by over 20% within the next six months [4][18]. Core Views - Suzhou Bank has demonstrated steady profit growth with a 12.1% year-on-year increase in net profit attributable to shareholders, supported by resilient revenue levels despite a slight decline in net interest income [5][9]. - The bank's asset quality remains robust, with a non-performing loan (NPL) ratio of 0.84%, indicating stability in its credit portfolio [9][15]. - The report highlights the bank's strategic expansion outside Suzhou, with 66% of new loans issued in regions beyond its home city, contributing to a 14.5% year-on-year growth in total loans [9]. Financial Performance Summary - For the first half of 2024, Suzhou Bank reported total operating income of 6.39 billion yuan, a year-on-year increase of 1.88%, and total assets of 659.5 billion yuan, reflecting a growth of 9.58% compared to the previous year [5][9]. - The bank's net interest margin (NIM) for the first half of 2024 was 1.48%, showing a slight contraction from the previous quarter, while the cost of interest-bearing liabilities decreased to 2.20% [7][9]. - Non-interest income increased by 12.5% year-on-year, with significant contributions from other non-interest income sources, which grew by 36.2% [6][9]. Asset Quality and Risk Management - The bank's NPL generation rate is estimated at 0.46%, with a coverage ratio of 487%, indicating a strong capacity to absorb potential losses [9][15]. - The report notes a slight increase in the personal loan NPL ratio to 1.33%, emphasizing the need for vigilance in managing retail asset quality risks [9][15]. Future Outlook - The report projects steady growth in earnings per share (EPS) for 2024-2026, with expected EPS of 1.39 yuan, 1.54 yuan, and 1.71 yuan respectively, corresponding to profit growth rates of 10.4%, 10.9%, and 11.2% [9][14]. - The bank's strategic focus on enhancing its wealth management capabilities and expanding its branch network is expected to further strengthen its competitive position in the market [9].