苏州银行：信贷平稳投放，资产质量稳健

Investment Rating - The investment rating for Suzhou Bank is maintained as "Buy" with a target price of RMB 9.40 [8][11]. Core Views - Suzhou Bank's revenue and net profit for 2024 are expected to grow by 3.0% and 10.2% year-on-year, respectively, with a return on equity (ROE) of 11.68% [1][5]. - The bank's total assets, loans, and deposits are projected to increase by 15.3%, 13.6%, and 14.6% year-on-year by the end of 2024, indicating stable credit expansion [2]. - The non-performing loan (NPL) ratio is expected to improve slightly, with a coverage ratio of 483% as of the end of 2024, reflecting a solid asset quality [3]. - The bank has a notable dividend yield of 5.21% for 2024, positioning it among the top ten listed banks in terms of dividend advantage [4]. - The target price is based on a price-to-book (PB) ratio of 0.80 for 2025, reflecting the bank's strong regional presence and clear strategic goals [5]. Summary by Sections Financial Performance - For 2024, Suzhou Bank's revenue is projected at RMB 12,223 million, with a net profit of RMB 5,068 million, reflecting a growth rate of 10.16% [19]. - The bank's NPL ratio is expected to decrease to 0.83% by 2024, with a core tier 1 capital adequacy ratio of 8.65% [19]. Asset Quality - The NPL ratio is forecasted to improve to 0.82% by 2025, with a further decline to 0.81% by 2026, indicating a positive trend in asset quality [19]. - The bank's provisioning coverage is expected to remain robust, supporting its asset quality management [3]. Capital and Dividends - The bank's dividend policy remains stable, with a projected dividend yield of 5.74% for 2025, enhancing its attractiveness to investors [4]. - The completion of the convertible bond conversion is expected to strengthen the bank's capital base, supporting future growth [2]. Valuation - The estimated book value per share (BVPS) for 2025 is projected at RMB 11.75, with a corresponding PB ratio of 0.65 [5]. - The average PB ratio for comparable banks is 0.62, indicating that Suzhou Bank may enjoy a valuation premium due to its strategic positioning [5].