BANK OF SUZHOU(SZ:002966)2024-10-31 09:14Investment Rating - The report maintains a "Buy" rating for Suzhou Bank [2][7] Core Views - Suzhou Bank's performance shows steady growth with a 1.1% year-on-year increase in revenue for the first nine months of 2024, and a 11.1% increase in net profit attributable to shareholders [2][3] - The bank's asset quality remains stable, with a non-performing loan (NPL) ratio holding steady at 0.84% and a provision coverage ratio of 474% [2][7] - The report highlights the need for effective measures to stabilize the net interest margin, which has seen a decline [3][5] Summary by Sections Financial Performance - For the first nine months of 2024, Suzhou Bank achieved revenue of 9.3 billion yuan, up 1.1% year-on-year, and a net profit of 4.2 billion yuan, up 11.1% year-on-year [2][3] - The bank's net interest income decreased by 6.5% year-on-year, impacting revenue growth by 4.5 percentage points, while non-interest income grew by 19% [3][10] Loan and Deposit Trends - Total loans increased by 14.1% year-on-year, with corporate loans contributing significantly, while retail loans saw a decline [4][5] - The bank's interest margin for the first nine months of 2024 was 1.41%, down 30 basis points year-on-year [5][11] Asset Quality - The NPL generation rate for the third quarter of 2024 was estimated at 0.7%, influenced by increased write-offs [7][12] - The provision coverage ratio decreased by 13 percentage points to 474%, but remains at a leading level compared to peers [7][12] Future Outlook - The report projects a continued growth in net profit for 2024-2026, with year-on-year increases of 10.3%, 10.4%, and 10.7% respectively [7][10] - The current stock price corresponds to a price-to-book (PB) ratio of 0.68 times for 2024, supporting the "Buy" rating [7][10]