苏农银行：“进军城区”稳步兑现，期待高质量成长

Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The report indicates that Su Nong Bank has achieved a profit of 1.6 billion yuan in 2024, representing a year-on-year growth of 12.2% for the first nine months of 2024 [1] - The bank's revenue growth has slowed down due to a decline in non-interest income contributions, but it has maintained double-digit profit growth [2][4] - The asset quality remains strong, with a non-performing loan ratio of approximately 0.91% and a provision coverage ratio of 430% [2][3] Summary by Sections Financial Performance - For the first nine months of 2024, Su Nong Bank's revenue grew by 4.8% year-on-year, while the net profit attributable to shareholders increased by 12.2% [1][4] - The bank's net interest margin for 9M24 was 1.49%, slightly down from 1H24, with a loan yield of 3.38% [2][3] Loan Growth and Structure - Loan growth for the bank was 4.8% year-on-year, with a focus on optimizing the loan structure [1][5] - The bank's strategy of "advancing into urban areas" has shown positive results, although there was a temporary slowdown in loan growth due to structural adjustments [3][5] Asset Quality - The non-performing loan ratio remained stable at around 0.91%, with a provision coverage ratio of 430%, indicating a solid foundation for sustainable performance [2][3] - The report highlights that the bank's asset quality is supported by a robust provisioning basis, which is crucial for stable and sustainable growth [2][3] Future Outlook - The bank is expected to continue its growth trajectory, with projected net profit growth rates of 12.3%, 12.8%, and 13.2% for 2024-2026 [3] - The current stock price corresponds to a price-to-book ratio of 0.53 for 2024, reinforcing the "Buy" rating [3]