Changshu Bank(601128) 光大证券·2025-03-28 03:17Investment Rating - The report maintains a "Buy" rating for Changshu Bank (601128.SH) [1] Core Insights - Changshu Bank achieved a revenue of 10.9 billion yuan in 2024, representing a year-on-year growth of 10.5%, and a net profit attributable to shareholders of 3.8 billion yuan, up 16.2% year-on-year [4][5] - The bank's return on average equity (ROAE) was 14.15%, an increase of 0.5 percentage points compared to the previous year [4] - The bank's asset quality remains strong, with a non-performing loan (NPL) ratio of 0.77% and a coverage ratio of 500.5% at the end of 2024 [10][12] Revenue and Profitability - Revenue growth was driven by a 7.5% increase in net interest income and a 29.1% increase in non-interest income [5] - The bank's non-interest income accounted for 16% of total revenue, with significant contributions from investment income, which grew by 56% year-on-year [10] - The bank's net interest margin (NIM) for 2024 was 2.71%, down 15 basis points from 2023 [9] Loan and Deposit Growth - By the end of 2024, the bank's interest-earning assets and loans grew by 11% and 8.3% year-on-year, respectively [6] - The bank's deposit growth was robust, with a 15.6% year-on-year increase in total deposits [8] - The proportion of time deposits continued to rise, reaching 72% of total deposits by the end of 2024 [8] Capital Adequacy - The core tier 1 capital adequacy ratio was 11.2%, indicating a solid capital position [12] - The bank has a strong internal capital generation capacity, supported by a stable dividend payout ratio [12] Earnings Forecast and Valuation - The report adjusts the earnings per share (EPS) forecast for 2025-2027 to 1.41, 1.56, and 1.65 yuan, respectively [13] - The current stock price corresponds to a price-to-book (PB) ratio of 0.67 and a price-to-earnings (PE) ratio of 5.09 for 2025 [13]