BANK OF SUZHOU(002966) EBSCN·2024-11-01 04:10Investment Rating - The report maintains a "Buy" rating for Suzhou Bank (002966.SZ) with a current price of 7.64 yuan [1]. Core Views - Suzhou Bank achieved a revenue of 9.3 billion yuan in the first three quarters of 2024, representing a year-on-year growth of 1.1%, while the net profit attributable to shareholders reached 4.18 billion yuan, up 11% year-on-year [3][4]. - The bank's return on average equity (ROAE) stands at 12.9%, a slight decrease of 0.3 percentage points year-on-year [3]. - The bank's financial performance shows a dual-digit profit growth, with net interest income and non-interest income growth rates of -6.5% and 18.5%, respectively [4]. Revenue and Profitability - Revenue growth remains positive year-on-year, with net profit growth of 11.1% in the first three quarters [4]. - The bank's non-interest income has increased significantly, accounting for 36% of total revenue, with a year-on-year growth of 18.5% [11]. - The net interest margin (NIM) is reported at 1.41%, narrowing by 7 basis points compared to the first half of 2024 [7][10]. Asset and Liability Management - As of the end of Q3 2024, the bank's interest-earning assets and loans grew by 13.8% and 14.1% year-on-year, respectively [5]. - The bank's deposit growth has improved, with a year-on-year increase of 15.2% [6]. - The bank's capital adequacy ratios are robust, with a core Tier 1 capital ratio of 9.41% [13][21]. Credit Quality - The non-performing loan (NPL) ratio remains low at 0.84%, with a stable asset quality [12]. - The bank's provision coverage ratio is at 473.7%, indicating a strong ability to cover potential losses [12][21]. Future Outlook - The bank's net profit growth forecasts for 2024-2026 are maintained at 15.2%, 12.7%, and 10.4%, respectively, with adjusted EPS estimates of 1.41, 1.59, and 1.75 yuan [14]. - The report highlights the potential for capital increase through the conversion of convertible bonds, which could support future growth [13].