Bank Of Jiangsu(SH:600919) Minsheng Securities·2024-04-26 08:30Investment Rating - The report maintains a "Recommended" rating for Jiangsu Bank, with a target price corresponding to 0.7 times the estimated 2024 PB [2][3]. Core Views - Jiangsu Bank has shown steady expansion in its loan and deposit scales, supported by a stable asset quality and a high level of provisions, indicating ample room for profit release in the future [2]. - The bank's revenue for 2023 was CNY 74.3 billion, with a year-on-year growth of 5.3%, while the net profit attributable to shareholders was CNY 28.8 billion, reflecting a 13.3% increase [1][3]. - The bank's non-interest income has continued to perform well, primarily driven by increased returns from trading financial assets [1]. - The bank's loan portfolio has expanded by 13.1% year-on-year in Q1 2024, with a significant contribution from corporate loans, particularly in manufacturing and small micro enterprises [1]. - The net interest margin has shown a downward trend, with a year-end figure of 1.98% for 2023, indicating ongoing pressure on loan yields [1]. Summary by Sections Financial Performance - Revenue for 2023 was CNY 743 billion, with a YoY growth of 5.3%, and for Q1 2024, it was CNY 210 billion, with a YoY growth of 11.7% [1]. - Net profit attributable to shareholders for 2023 was CNY 288 billion, with a YoY increase of 13.3%, and for Q1 2024, it was CNY 90 billion, reflecting a 10.0% increase [1][3]. - Other non-interest income grew significantly, with a YoY increase of 74.9% in Q1 2024, mainly due to enhanced returns from trading financial assets [1]. Asset Quality - The non-performing loan ratio at the end of Q1 2024 was 0.91%, stable compared to the end of 2023, with a provision coverage ratio of 371% [1][2]. - The bank's provisions remain at a high level, providing a buffer for potential future losses [2]. Loan and Deposit Growth - Total loans increased by 13.1% YoY in Q1 2024, with corporate loans being the primary driver of this growth [1]. - Total deposits grew by 14.5% YoY in Q1 2024, attributed to strong corporate loan disbursements [1]. Future Projections - EPS estimates for 2024, 2025, and 2026 are projected to be CNY 1.75, CNY 1.96, and CNY 2.22 respectively [2][3]. - Revenue growth rates are expected to be 5.3% for 2023, with projections of 8.0%, 8.4%, and 9.2% for the following years [3].