Changshu Bank(601128) 兴业证券·2024-03-25 16:00Investment Rating - The report maintains an "Accumulate" rating for the company [1][6]. Core Insights - The company's revenue and net profit for 2023 grew by 12.1% and 19.6% year-on-year, respectively, with a return on equity (ROE) of 13.69% [3][4]. - The loan growth rate remains above 15%, with retail banking contributing significantly to the growth [1][4]. - The net interest margin has narrowed to 2.86%, primarily due to the re-pricing of existing mortgage loans [2][4]. - Asset quality remains stable, with a non-performing loan (NPL) ratio of 0.75% at the end of 2023 [2][4]. Summary by Sections Financial Performance - In 2023, the company achieved total revenue of 9.87 billion and a net profit of 3.28 billion, reflecting a year-on-year increase of 12.1% and 19.6%, respectively [3][4]. - The net interest income increased by 11.7%, while other non-interest income surged by 32.4% [1][4]. Loan and Asset Growth - Total assets grew by 16.2% year-on-year, with loans increasing by 15.4% [1][4]. - The company added 29 billion in new credit in 2023, with retail loans contributing 55% of this growth [1][4]. Interest Margin and Cost Management - The net interest margin decreased by 9 basis points quarter-on-quarter and 16 basis points year-on-year [2][4]. - The cost-to-income ratio improved to 36.9%, indicating better cost management [1][4]. Asset Quality - The NPL ratio remained stable at 0.75%, with a provision coverage ratio of 538% [2][4]. - The company reported a slight increase in the overdue rate year-on-year, but overall risk remains manageable [2][4]. Capital Adequacy - As of the end of 2023, the company's core Tier 1, Tier 1, and total capital adequacy ratios were 10.42%, 10.48%, and 13.86%, respectively [5]. Earnings Forecast - The report slightly adjusts the EPS forecast for 2024 and 2025 to 1.41 and 1.62, respectively, with an estimated book value per share of 9.95 by the end of 2024 [6][7].