Bank Of Jiangsu(SH:600919) Huachuang Securities·2024-10-30 07:46Investment Rating - The report maintains a "Recommend" rating for Jiangsu Bank (600919) with a target price of 10.22 CNY, compared to the current price of 9.02 CNY [1][2]. Core Views - Jiangsu Bank achieved a steady double-digit growth in net profit, with a year-on-year increase of 10.1% in the first three quarters of 2024, reaching a net profit of 28.24 billion CNY [1]. - The bank's operating income for Q3 2024 was 20.68 billion CNY, showing a recovery in revenue growth, primarily driven by a significant increase in non-interest income, which rose by 35.1% year-on-year [1]. - The bank's loan structure is improving, with a focus on balancing corporate and retail loans, as corporate loan growth has slowed down while retail loan demand shows signs of recovery [1][2]. Financial Performance Summary - For the first three quarters of 2024, Jiangsu Bank reported total operating income of 62.3 billion CNY, a 6.2% increase year-on-year, and a net profit attributable to shareholders of 28.24 billion CNY, a 10.1% increase year-on-year [1][3]. - The bank's non-performing loan (NPL) ratio remained stable at 0.89%, with a provision coverage ratio of 351%, indicating strong risk mitigation capabilities [1][3]. - The bank's interest margin for Q3 2024 was 1.71%, reflecting a decrease compared to previous quarters, primarily due to competitive pricing in corporate loans [1][3]. Future Outlook - The report projects revenue growth rates of 6.3%, 4.0%, and 9.6% for 2024, 2025, and 2026 respectively, with net profit growth rates of 10.2%, 7.3%, and 7.9% for the same periods [1][2]. - The bank's capital strength is expected to improve further with the conversion of 20 billion CNY of convertible bonds in 2023, enhancing its capacity for credit expansion [1][3].