BANK OF SUZHOU(002966) Guotai Junan Securities·2024-11-03 14:41Investment Rating - The report maintains a "Buy" rating for Suzhou Bank, with an updated target price of 8.80 CNY per share [2][5]. Core Views - Suzhou Bank shows steady performance, with a negative revenue growth due to interest margin pressure, but net profit maintains double-digit growth. The bank has increased its efforts in asset quality management and bad debt disposal, resulting in stable asset quality [2][3]. Financial Summary - Revenue for 2023 is projected at 11,866 million CNY, with a slight increase of 0.9% from 2022. The net profit attributable to shareholders is expected to reach 4,601 million CNY, reflecting a growth of 17.4% [4]. - The bank's net interest income is forecasted to decline by 7.6% in 2024, while net profit growth rates are adjusted to 10.4%, 5.7%, and 7.4% for 2024, 2025, and 2026 respectively [3][4]. - The bank's asset quality remains strong, with a non-performing loan (NPL) ratio stable at 0.84% as of Q3 2024, and a provision coverage ratio of 474% [3][4]. Loan and Deposit Growth - Loan growth has slightly slowed to 14.1% year-on-year, while deposits increased by 15.2%. The bank added 51.7 billion CNY in loans and 34.2 billion CNY in deposits in Q3 2024 [3][4]. Asset Quality - The report indicates an increase in bad debt generation, but overall asset quality remains robust. The bank has intensified its efforts in bad debt disposal, with significant write-offs in Q3 2024 [3][4].