Bank Of Jiangsu(600919) 长江证券·2024-11-04 02:43Investment Rating - The report maintains a "Buy" rating for Jiangsu Bank (600919 SH) [2] Core Views - Jiangsu Bank's Q3 2024 results show stable profit growth and positive net interest income [1][3] - Revenue growth of 6 2% YoY in the first three quarters - Net profit attributable to shareholders grew 10 1% YoY - Net interest income increased by 1 5% YoY - Non interest income grew 17 1% YoY - The bank's asset quality remains stable with NPL ratio unchanged at 0 89% [1][3] - Valuation shows a discount compared to other leading city commercial banks [6] Business Performance Revenue and Profit - Interest income growth remained positive at 1 5% YoY in Q3 2024 [1][3] - Net interest margin is expected to remain stable - Non interest income growth slowed to 17 1% from 19 7% in H1 2024 [3] - Investment income and other non interest income grew 26 5% YoY - Net fee income declined 11 9% YoY due to base effect and timing of fee expenses - Cost to income ratio improved by 0 7 percentage points YoY [3] - Credit impairment losses decreased by 1 5% YoY supporting net profit growth [3] Loan Growth - Total loans grew 10 6% YTD and 2 0% QoQ in Q3 2024 [1][4] - Corporate loans increased 18 8% YTD with 0 9% QoQ growth - Focus on manufacturing infrastructure and small micro enterprises - Retail loans grew 2 0% QoQ after a 0 8% YTD decline - Recovery in consumer loan demand - Deposit growth was 10 7% YTD though QoQ declined 0 7% [4] - Current deposit ratio remained stable at 27 9% Asset Quality - NPL ratio remained stable at 0 89% in Q3 2024 [1][3] - Provision coverage ratio declined by 6 percentage points to 351% [1][3] - Retail loan NPL ratio increased by 19bps to 0 98% YTD [6] - Personal business loan NPL ratio rose by 9bps to 1 58% - Corporate loan quality remains strong due to favorable regional economy [6] Interest Margin - Net interest margin is expected to remain stable in Q3 2024 [5] - Loan yield declined by 20bps to 4 98% in H1 2024 - Deposit cost improved by 15bps to 2 18% in H1 2024 - Further improvement expected due to deposit rate cuts - Time deposits account for 65% of total deposits Valuation and Outlook - The bank trades at 0 69x 2024 PB showing a discount to peers [6] - Full year 2024 revenue growth is expected at 4 2% with net profit growth of 10 0% [6] - Long term strategy remains clear with capital replenishment completed [6] - Positioned to become a leading city commercial bank