BANK OF SUZHOU(SZ:002966) Changjiang Securities·2025-05-05 23:31Investment Rating - The investment rating for Suzhou Bank is "Buy" and is maintained [9]. Core Views - Suzhou Bank's revenue growth for 2024 is projected at 3.0%, with a net profit growth of 10.2%. The fourth quarter saw a significant increase in investment income, contributing to revenue growth [2][6]. - For Q1 2025, revenue growth is expected to slow to 0.8%, with net profit growth at 6.8%. A 31% decline in investment income and fair value changes impacted revenue, while net interest income slightly decreased [2][6]. - The bank's asset quality remains strong, with a non-performing loan ratio stable at 0.83% at the end of 2024 and Q1 2025. The provision coverage ratio was 484% at the end of 2024 and 447% at the end of Q1 2025 [2][6]. - The dividend payout ratio for 2024 increased by 1.4 percentage points to 32.5%, positioning the bank among the top listed banks. A shareholder return plan was announced, committing to a cash dividend ratio of no less than 30% of distributable profits from 2025 to 2027 [2][6]. Summary by Sections Financial Performance - In 2024, the bank's total revenue growth was 3.0%, with a net profit growth of 10.2%. The fourth quarter saw a revenue growth of 9.6% [6]. - For Q1 2025, revenue growth was 0.8%, and net profit growth was 6.8%. The decline in investment income and fair value changes negatively affected revenue [6]. Asset Quality - The non-performing loan ratio remained stable at 0.83% at the end of 2024 and Q1 2025. The provision coverage ratio was 484% at the end of 2024 and decreased to 447% by Q1 2025 [2][6]. Dividend Policy - The dividend payout ratio for 2024 increased to 32.5%, and a commitment was made for a minimum cash dividend ratio of 30% from 2025 to 2027 [2][6]. Loan and Deposit Growth - In 2024, loan growth was 13.6%, with corporate loans increasing by 23.2%. Retail loans saw a contraction of 5.7% due to a reduction in personal operating loans [12]. - Deposit growth for 2024 was 14.6%, with personal deposits growing significantly by 20.4% [12].