2023年年报点评：小微投放良好，营收领跑同业

Investment Rating - The report maintains a "Buy" rating for Changshu Bank [5][6][7] Core Views - Changshu Bank's 2023 annual report shows a revenue growth of 12.1% year-on-year, with net interest income increasing by 11.7% and net profit attributable to shareholders rising by 19.6%. The total loan amount grew by 15.0% compared to the beginning of the year, with a focus on small and micro enterprises [2][6][7] - The bank's non-performing loan ratio remained stable at 0.75%, and the provision coverage ratio increased to 537.88%. The weighted average return on equity rose to 13.69%, indicating strong overall performance compared to peers [6][7][8] - The report forecasts a revenue growth of 10.2% and a net profit growth of 19.7% for 2024, with a valuation of only 0.67 times price-to-book ratio based on the closing price on March 21, 2024, suggesting significant undervaluation [6][7][8] Summary by Sections Financial Performance - Revenue for 2023 increased by 12.1%, with net interest income up by 11.7% and net profit attributable to shareholders up by 19.6%. The total loan amount grew by 15.0%, with a notable increase in personal operating loans by 21.1% [2][6][7] - The bank's non-performing loan ratio held steady at 0.75%, while the provision coverage ratio improved to 537.88%, reflecting a robust risk management framework [6][7][8] Loan and Deposit Growth - The total loan amount increased by 15.0% year-on-year, with a focus on small and micro enterprises. The bank's village and town bank loans grew by 17.2%, surpassing the parent bank's growth rate [6][7] - Total deposits rose by 16.2% compared to the beginning of the year, with retail deposits increasing by 22.8% [6][7] Interest Margin and Asset Quality - The net interest margin decreased by 9 basis points to 2.86%, but remains significantly higher than peers. The loan yield decreased by 27 basis points to 5.81% [6][7] - The report highlights that the bank's asset quality is superior to that of other sectors, with a focus on small and micro loans, which have shown better performance under economic pressure [6][7][8] Future Outlook - The bank is expected to continue leading in performance among peers, with a projected revenue growth of 10.2% and net profit growth of 19.7% for 2024. The current valuation is considered significantly undervalued at 0.67 times price-to-book ratio [6][7][8]