苏州银行（002966）：利息增速转正，不良生成回落

Investment Rating - The investment rating for the company is "Buy" and is maintained [9]. Core Views - The company's revenue growth for the first half of 2025 is +1.8%, with a net profit growth of +6.2%. The interest income growth has turned positive at +2.7%, driven by stable interest margins and rapid credit expansion. The loan growth compared to the beginning of the year is 9.0%, with significant growth in corporate loans at +19.5% [2][6]. - The net interest margin is reported at 1.33%, which has decreased by 1 basis point from Q1 and by 5 basis points compared to the full year of 2024. The non-performing loan (NPL) ratio remains stable at 0.83%, with a provision coverage ratio of 438%, indicating strong asset quality [2][6]. - The company is focusing on expanding its total assets towards the trillion yuan target, with government-related business driving high growth. The total deposits have increased by 11.0% compared to the beginning of the year [11]. Summary by Sections Revenue and Profitability - Revenue growth for H1 2025 is +1.8%, with Q1 at +0.8% and Q2 at +2.9%. Net profit growth is +6.2%, with Q1 at +6.8% and Q2 at +5.5%. Interest income growth is +2.7%, while non-interest income growth is +0.13% [2][6][11]. - The cost-to-income ratio has decreased by 3.7 percentage points year-on-year, contributing positively to profit before provisions and taxes (PPOP), which has grown by 7.1% [11]. Asset Quality - The NPL ratio is stable at 0.83%, with a provision coverage ratio of 438%, down 9 percentage points from the previous quarter. The NPL generation rate has stabilized and decreased, benefiting from a focus on corporate government-related business [11][12]. - The retail loan NPL ratio has increased slightly to 1.80%, but the overall asset quality remains strong due to the focus on government-related lending [11]. Future Outlook - The company aims to reach a total asset scale of one trillion yuan, with a conservative risk appetite and a focus on maintaining asset quality. The expected dividend yield for 2025 is 4.8%, with a price-to-book (PB) ratio of 0.70x [11][12].