NJBK(601009) 民生证券·2024-10-24 08:00Investment Rating - The report maintains a "Recommended" rating for Nanjing Bank, with a target price of 10.30 CNY, corresponding to 0.7 times the 2024 PB as of October 23, 2024 [2][4]. Core Views - Nanjing Bank has demonstrated stable growth in revenue and net profit, with a year-on-year revenue increase of 8.0% and a net profit growth of 9.0% for the first three quarters of 2024. The bank's asset quality remains stable, with a non-performing loan ratio of 0.83% and a provision coverage ratio of 340% [1][2]. - The bank's expansion strategy is effective, particularly in retail and corporate lending, with personal loan growth of 8.0% and corporate loan growth of 15.7% in the same period. The bank is actively supporting key sectors such as technology and green finance [1][2]. - The bank has maintained a dividend payout ratio above 30% over the past three years, enhancing its attractiveness for investors [2]. Summary by Sections Financial Performance - For the first three quarters of 2024, Nanjing Bank achieved a revenue of 38.6 billion CNY, a year-on-year increase of 8.0%, and a net profit of 16.7 billion CNY, up 9.0% year-on-year. The cost-to-income ratio improved to 25.3% [1][2]. - The bank's total assets, loans, and deposits grew by 13.7%, 13.7%, and 4.5% year-on-year, respectively, indicating a robust expansion [1][10]. Asset Quality - The non-performing loan ratio remained stable at 0.83%, with a slight improvement in personal loan quality. The bank's provision coverage ratio stands at 340%, reflecting strong risk management [1][37]. Earnings Forecast - The projected earnings per share (EPS) for 2024, 2025, and 2026 are 1.93 CNY, 2.07 CNY, and 2.22 CNY, respectively. The bank's price-to-earnings (P/E) ratio is expected to remain around 5 [2][36].