BANK OF CHANGSHA(SH:601577) EBSCN·2024-10-30 03:40Investment Rating - The report maintains a "Buy" rating for Changsha Bank (601577.SH) with a current price of 8.29 CNY [1]. Core Views - Non-interest income has significantly increased, driving faster revenue and profit growth. For the first three quarters of 2024, the bank achieved revenue of 19.47 billion CNY, a year-on-year increase of 3.8%, and a net profit attributable to shareholders of 6.19 billion CNY, up 5.9% year-on-year [4][5]. Summary by Sections Financial Performance - Revenue, pre-provision profit, and net profit growth rates for the first three quarters were 3.8%, 3.2%, and 5.9%, respectively, showing improvements compared to the first half of 2024 [5]. - The bank's net interest income and non-interest income growth rates were -1% and 23.3%, respectively, indicating a significant increase in non-interest income [5]. Asset and Liability Management - As of the end of Q3 2024, the bank's total assets, interest-earning assets, and loans grew by 10.4%, 8.7%, and 11.3% year-on-year, respectively [7]. - The bank's deposit growth has slowed, with a year-on-year increase of 8.9% in deposits, down from previous quarters [6]. Cost and Profitability - The bank's cost-to-income ratio and credit impairment losses as a percentage of operating income were 25.7% and 33.7%, respectively, both showing year-on-year declines [5]. - The net interest margin (NIM) for the first three quarters was 2.1%, slightly narrowing compared to the first half of the year [8]. Risk Management - The non-performing loan (NPL) ratio remained stable at 1.16% as of the end of Q3, with a provision coverage ratio of 314.5%, indicating strong risk mitigation capabilities [11][12]. Capital Adequacy - As of Q3 2024, the bank's core tier 1, tier 1, and total capital adequacy ratios were 9.9%, 11.6%, and 14%, respectively, showing improvements from the previous quarter [12][25].