Bank Of Jiangsu(SH:600919) Huachuang Securities·2025-08-24 09:13Investment Rating - The report maintains a "Recommended" rating for Jiangsu Bank, with a target price of 13.03 yuan [2][8]. Core Views - Jiangsu Bank's performance in the first half of 2025 shows steady growth, with operating income reaching 44.864 billion yuan, a year-on-year increase of 7.78%, and net profit attributable to shareholders of 20.238 billion yuan, up 8.05% year-on-year [2][8]. - The bank's non-performing loan (NPL) ratio improved to 0.84%, down 5 basis points from the beginning of the year, while the provision coverage ratio decreased by 19.08 percentage points to 331.02% [2][8]. - The bank's strong growth in net interest income, which reached 32.939 billion yuan, represents a significant year-on-year increase of 19.10%, driven by effective cost control on liabilities [2][8]. Summary by Sections Financial Performance - Jiangsu Bank's total revenue for the first half of 2025 was 44.864 billion yuan, with a net profit of 20.238 billion yuan, reflecting solid performance [2][8]. - The bank's net interest income showed robust growth, with a year-on-year increase of 19.10%, while non-interest income faced some pressure due to market conditions [2][8]. Loan Growth and Quality - The bank's loan portfolio expanded significantly, with new loans amounting to 334.8 billion yuan, a year-on-year increase of 174.4 billion yuan, resulting in a 15.98% growth in total loans [2][8]. - The corporate loan segment was the main driver, with a 23.30% increase year-to-date, while retail loans showed mixed results [2][8]. Asset Quality - The bank's asset quality indicators improved, with the NPL ratio decreasing to 0.84% and the coverage ratio remaining strong at 331.02% [2][8]. - The bank's proactive approach to provisioning led to a 48.16% increase in credit impairment losses, which slightly constrained profit growth [2][8]. Investment Outlook - Jiangsu Bank is positioned to benefit from its strong regional economic presence and effective management strategies, with projected net profit growth rates of 7.4%, 8.0%, and 7.8% for 2025-2027 [8][9]. - The current stock price corresponds to a 2025E price-to-book (PB) ratio of 0.81X, with a target PB of 0.95X, indicating potential upside [8][9].