Bank Of Jiangsu(600919) EBSCN·2024-10-30 04:11Investment Rating - The report maintains a "Buy" rating for Jiangsu Bank (600919.SH) with a current price of 9.02 CNY [2]. Core Views - Jiangsu Bank has accelerated its scale expansion and demonstrated strong resilience in performance, with revenue growth of 6.2% year-on-year and net profit growth of 10.1% in the first three quarters of 2024 [4][6]. - The bank's non-interest income grew by 17% year-on-year, although its proportion of total revenue decreased to 33% [10]. - The bank's asset quality remains strong, with a non-performing loan (NPL) ratio of 0.89% and a provision coverage ratio of 351% as of the end of Q3 2024 [11][19]. Summary by Sections Financial Performance - Jiangsu Bank achieved a revenue of 623 billion CNY and a net profit of 282 billion CNY in the first three quarters of 2024, reflecting year-on-year growth rates of 6.2% and 10.1% respectively [4][6]. - The bank's return on average equity (ROAE) was 16.33%, a decrease of 1.8 percentage points year-on-year [4]. Revenue Composition - The growth rates for net interest income and non-interest income were 1.5% and 17.1% respectively, with a slight decline compared to the first half of 2024 [6]. - Non-interest income contributed significantly to revenue, with net fees and commissions at 38 billion CNY, down 12% year-on-year, while other non-interest income reached 168 billion CNY, up 27% year-on-year [10]. Asset Quality - The NPL ratio stood at 0.89% at the end of Q3 2024, with a provision coverage ratio of 351%, indicating strong risk mitigation capabilities [11][19]. - The bank's credit impairment losses for the quarter were 47 billion CNY, reflecting a year-on-year increase of 3 billion CNY [11]. Capital Adequacy - As of Q3 2024, the core tier 1 capital adequacy ratio was 9.3%, with total capital adequacy at 13.2% [11][19]. - The issuance of 10 billion CNY in perpetual bonds has effectively supplemented the bank's capital base [11]. Future Outlook - The bank is expected to benefit from the economic growth in Jiangsu province, with a focus on key sectors such as advanced manufacturing and small enterprises [12]. - Earnings per share (EPS) forecasts for 2024-2026 are projected at 1.79, 2.00, and 2.20 CNY respectively, with the current price corresponding to a price-to-book (PB) ratio of 0.7 and a price-to-earnings (PE) ratio of 5.0 [12][13].