Changshu Bank(SH:601128) ZHONGTAI SECURITIES·2025-10-30 08:28Investment Rating - The report maintains an "Accumulate" rating for the company [4][5]. Core Views - The company has shown a double-digit growth in revenue and profit, with an increase in the dividend payout ratio by 5.5 percentage points [5]. - The bank's credit issuance has increased year-on-year, and the generation of non-performing loans has improved [3][5]. - The bank's business model focuses on a diversified customer structure, maintaining excellent asset quality and leading growth in revenue and profit [5]. Financial Performance Summary - For the first three quarters, the company's revenue increased by 8.2% year-on-year, while net profit rose by 12.8% [5]. - Net interest income grew by 2.4% year-on-year, supported by stable interest margins and a recovery in the growth of interest-earning assets [5]. - Non-interest income saw a significant increase of 35.3% year-on-year, although this was affected by a high base and fluctuations in the bond market [5]. Profitability and Valuation - The company's projected earnings per share (EPS) for 2025 is 1.29 yuan, with a net profit of 4,292 million yuan, reflecting a year-on-year growth of 12.6% [4][16]. - The price-to-earnings (P/E) ratio is expected to decrease from 5.49 in 2024 to 5.36 in 2025, indicating a favorable valuation trend [4][16]. - The projected price-to-book (P/B) ratio is expected to decline from 0.75 in 2024 to 0.73 in 2025, suggesting continued investor confidence [4][16]. Asset Quality - The non-performing loan (NPL) ratio remains stable at 0.76%, with a marginal decrease in the generation of non-performing loans [5][15]. - The provision coverage ratio is reported at 462.94%, indicating a strong buffer against potential loan losses [5][15]. Loan and Deposit Growth - The bank's new loan issuance for the third quarter of 2025 was 5.29 billion yuan, showing a year-on-year increase of 45.43 billion yuan [5][12]. - Total deposits increased by 1.4 billion yuan in the third quarter, with a slight year-on-year decrease of 4.3% [5][12].