NJBK(SH:601009) Tai Ping Yang·2024-10-10 11:30Investment Rating - The report maintains a "Buy" rating for Nanjing Bank, with a target price based on the last closing price of 10.12 [1][6]. Core Insights - Nanjing Bank's H1 2024 results show improved revenue growth, with operating income reaching 26.216 billion yuan, a year-on-year increase of 7.87%, and net profit attributable to shareholders at 11.594 billion yuan, up 8.51% year-on-year [2][4]. - The bank's weighted ROE stands at 7.98%, reflecting a slight decrease of 0.16 percentage points year-on-year. The non-performing loan ratio is at 0.83%, down 7 basis points from the end of 2023 [2][4]. - Non-interest income has significantly contributed to revenue growth, with a 25.51% increase to 13.405 billion yuan, driven by a 477.90% rise in the fair value changes of trading financial assets [2][4]. - The bank's loan portfolio shows steady growth, with corporate loans increasing by 16.63% year-on-year and personal loans up by 4.43% [2][4]. - The bank's capital adequacy ratios have slightly decreased, with the core Tier 1 capital adequacy ratio at 8.97%, down 48 basis points year-on-year [2][4]. Summary by Sections Financial Performance - For H1 2024, Nanjing Bank reported operating income of 26.216 billion yuan, a 7.87% increase year-on-year, and net profit of 11.594 billion yuan, an 8.51% increase year-on-year [2][4]. - The bank's projected operating income for 2024-2026 is estimated at 47.851 billion, 50.949 billion, and 54.405 billion yuan, respectively, with corresponding net profits of 19.757 billion, 21.651 billion, and 23.802 billion yuan [4]. Asset Quality - The non-performing loan ratio is reported at 0.83%, with a provision coverage ratio of 345.02%, indicating a strong risk mitigation capacity despite a year-on-year decline [2][4]. Market Position - Nanjing Bank is positioned to leverage its regional advantages in Jiangsu and the Yangtze River Delta, focusing on high-quality growth and stable asset quality [2][4].