BANK OF SUZHOU(002966) Minsheng Securities·2024-10-31 12:31Investment Rating - The report maintains a "Recommended" rating for Suzhou Bank, with a closing price of 7.64 yuan on October 30, 2024, corresponding to 0.7 times the 2024 PB [3][5]. Core Views - Suzhou Bank has demonstrated robust profit growth with a year-on-year increase of 11.1% in net profit attributable to shareholders for the first three quarters of 2024. The bank's asset quality remains strong, with a stable non-performing loan (NPL) ratio of 0.84% and a high provision coverage ratio of 474% [2][3]. - The bank's revenue for the first three quarters of 2024 reached 9.29 billion yuan, reflecting a year-on-year growth of 1.1%. The growth in non-interest income, particularly from the bond market, has been a significant contributor to revenue stability [2][3]. Summary by Sections Financial Performance - For the first three quarters of 2024, Suzhou Bank reported a net interest income decline of 6.5% year-on-year, while non-interest income saw a substantial increase of 41.3% [2]. - The bank's total assets, total loans, and total deposits grew by 16.1%, 14.1%, and 15.2% year-on-year, respectively, indicating steady expansion [2][10]. Asset Quality - The NPL ratio remained stable at 0.84%, with a decrease in the attention ratio to 0.83%. The annualized NPL generation rate was calculated at 0.59%, showing an improvement [2][20]. - The provision coverage ratio decreased slightly but remains robust, indicating strong risk mitigation capabilities [2][20]. Earnings Forecast - The projected earnings per share (EPS) for 2024, 2025, and 2026 are 1.36 yuan, 1.48 yuan, and 1.63 yuan, respectively, with a consistent two-digit growth rate expected [3][19]. - The report anticipates a stable growth trajectory for the bank's revenue and profit, supported by favorable credit demand in its operational region [3][19].