BANK OF SUZHOU(002966) KAIYUAN SECURITIES·2024-10-31 09:30Investment Rating - Investment Rating: Buy (Maintain) [1] Core Views - The company has demonstrated robust profitability with a double-digit growth in net profit for the first three quarters of 2024, achieving a revenue of 9.289 billion yuan (YoY +1.10%) and a net profit attributable to shareholders of 4.179 billion yuan (YoY +11.09%) [1] - The bank's net interest margin has narrowed to 1.41%, down 7 basis points from the first half of 2024, while investment income has significantly increased by 56.21% year-on-year in Q3 2024, providing strong support for revenue [1] - The bank's asset quality remains strong, with a non-performing loan ratio of 0.84%, unchanged for five consecutive quarters, and a provision coverage ratio of 473.66% [3] Summary by Sections Financial Performance - For the first three quarters of 2024, the bank's revenue was 9.289 billion yuan, with a year-on-year growth of 1.10%, while the net profit attributable to shareholders was 4.179 billion yuan, reflecting a year-on-year increase of 11.09% [1] - Q3 2024 saw a slight decline in revenue by 0.59% year-on-year, with net interest income experiencing a larger drop due to the continued narrowing of the net interest margin [1][2] - The bank's net interest margin for the first three quarters of 2024 was 1.41%, which is a decrease of 7 basis points compared to the first half of the year [1] Asset Quality and Capital - The total assets of the bank reached 677.2 billion yuan by the end of Q3 2024, marking a year-on-year growth of 16.05%, with loans increasing by 14.14% [2] - The non-performing loan ratio remained stable at 0.84%, and the provision coverage ratio slightly decreased to 473.66%, indicating solid asset quality [3] - The bank has received approval for the issuance of 17 billion yuan in perpetual bonds, which is expected to support ongoing business expansion [3] Deposits and Loans - The bank continues to show strong growth in deposits, with corporate deposits and retail deposits increasing by 24.87% and 20.72% year-on-year, respectively [2] - Corporate loans have maintained a high growth rate of 24.60% year-on-year, while retail loan demand has shown relatively weak recovery [2] Future Projections - The bank's net profit forecasts for 2024-2026 are 5.099 billion yuan, 5.754 billion yuan, and 6.497 billion yuan, representing year-on-year growth rates of 10.83%, 12.85%, and 12.91%, respectively [1]