常熟银行：2024年三季报点评：业绩增速领先，看好估值修复

Investment Rating - The investment rating for the company is "Buy" and is maintained [2] Core Views - The company has demonstrated strong revenue growth with a year-on-year increase of 11.3% in the first three quarters of 2024, while net profit attributable to shareholders grew by 18.2% [2][5] - The bank's net interest income increased by 6.2% year-on-year, supported by a stable net interest margin and significant growth in non-interest income, which rose by 44% [2][3] - The bank's asset quality remains strong, with a non-performing loan ratio of 0.77% and a provision coverage ratio of 528% [2][4] Summary by Sections Performance - Revenue growth of 11.3% in the first three quarters, with net profit growth of 18.2% [2] - Non-interest income growth of 44%, driven by a strong performance in investment income [4] - Cost-to-income ratio improved by 4 percentage points, leading to a 18.8% increase in pre-provision operating profit (PPOP) [2][3] Scale - Total loans increased by 7.8% year-to-date, with a stable deposit structure showing a 14.8% increase [3] - The bank's retail loan growth has slowed, reflecting weaker external demand [3] Interest Margin - The net interest margin for the first three quarters was 2.75%, slightly down by 4 basis points from the previous half [3] - The bank is expected to benefit from a declining deposit cost trend due to a high proportion of fixed-term deposits [3] Non-Interest Income - Non-interest income growth has moderated, with investment income growth at 40% year-on-year [4] Asset Quality - The non-performing loan ratio increased slightly by 1 basis point to 0.77%, with a provision coverage ratio decrease of 10 percentage points [4] - The bank's risk management capabilities in the small and micro enterprise sector are noted to be industry-leading [4] Investment Recommendation - The bank is expected to maintain leading growth rates in the short term, with a projected revenue growth of 10.4% and net profit growth of 18.2% for the full year 2024 [5] - The current valuation is at 0.75 times the 2024 price-to-book ratio, indicating a significant discount compared to other leading banks [5]