Changshu Bank(SH:601128) Changjiang Securities·2025-05-04 08:02Investment Rating - The investment rating for the company is "Buy" and is maintained [9]. Core Views - The company reported a revenue growth of 10.0% and a net profit growth of 13.8% in Q1 2025, indicating continued industry-leading performance [2][6]. - The net interest margin (NIM) for Q1 was 2.61%, a decrease of 10 basis points from the full year of 2024, but still remains industry-leading [2][6]. - The non-performing loan (NPL) ratio at the end of Q1 was 0.76%, down 1 basis point from the previous quarter, with a provision coverage ratio of 490%, reflecting a decrease of 11 percentage points [2][6]. Summary by Sections Performance - The company's Q1 revenue growth of 10.0% and net profit growth of 13.8% are expected to continue leading the industry [2][6]. - Interest income growth slowed to 0.9%, reflecting a deceleration in scale growth and a narrowing interest margin [2][6]. - Non-interest income grew by 62%, driven by a 49% increase in investment income, contributing to double-digit revenue growth [12]. Scale - Total assets grew by 6.1% compared to the beginning of the year, with loans increasing by 3.6% [12]. - The deposit structure continues to optimize, with total deposits growing by 7.9% [12]. Interest Margin - The Q1 net interest margin was 2.61%, significantly higher than peers, with expectations for continued downward pressure on funding costs [12]. - The cost of interest-bearing liabilities decreased by 17 basis points compared to the full year of 2024 [12]. Asset Quality - The NPL ratio decreased by 1 basis point, with expectations for stabilization in the NPL generation rate due to improved risk management [12]. - The company maintains a strong risk absorption capacity, with asset quality metrics significantly better than peers [12]. Investment Recommendations - The company is expected to maintain superior performance in revenue growth, with projected revenue growth of 8.2% and net profit growth of 11.6% for the full year of 2025 [12]. - The current price-to-book (PB) ratio is 0.70x, and the price-to-earnings (PE) ratio is 5.2x, indicating a discount compared to other quality banks [12].