Changshu Bank(SH:601128) GOLDEN SUN SECURITIES·2025-04-26 09:37Investment Rating - The report maintains a "Buy" rating for Changshu Bank [4][6]. Core Views - Changshu Bank reported a revenue of 3 billion yuan in Q1 2025, representing a year-on-year growth of 10.04%, and a net profit attributable to shareholders of 1.1 billion yuan, up 13.81% year-on-year [1]. - The bank's asset quality remains stable, with a non-performing loan ratio of 0.76% and a provision coverage ratio of 489.56% as of the end of Q1 2025 [3]. - The bank's strategy to optimize deposit pricing has led to an increase in the proportion of demand deposits, which reached 19.17% by the end of Q1 2025, up 1.06 percentage points from the beginning of the year [4]. Performance Summary - Revenue and net profit growth rates for Q1 2025 were 10.04% and 13.81%, respectively, showing a slight decline compared to 2024 [2]. - Net interest income grew by 0.91% year-on-year, while non-interest income saw a significant increase of 495.23% due to a low comparative base from the previous year [2]. - The bank's total assets and loans reached 389 billion yuan and 249.6 billion yuan, respectively, with year-on-year growth of 6.67% and 6.12% [4]. Asset Quality - The non-performing loan ratio decreased by 1 basis point to 0.76%, while the provision coverage ratio fell by 11 percentage points [3]. - The credit cost for Q1 2025 was 0.96%, reflecting a year-on-year increase of 5 basis points [3]. Asset and Liability Management - Total deposits reached 309 billion yuan, marking a year-on-year increase of 9.00%, with a net increase of 22.5 billion yuan in Q1 2025 [4]. - The bank's strategy has led to a significant increase in demand deposits, contributing to a more favorable funding structure [4]. Investment Outlook - The report anticipates continued high growth in net profit, projecting figures of 4.3 billion yuan, 4.8 billion yuan, and 5.3 billion yuan for 2025, 2026, and 2027, respectively, with year-on-year growth rates of 12.22%, 11.70%, and 10.17% [4].