NJBK(SH:601009) Minsheng Securities·2024-04-28 03:02Investment Rating - The report maintains a "Recommended" rating for Nanjing Bank [1][2]. Core Views - Nanjing Bank's performance shows signs of recovery with a rebound in growth rates, a decrease in non-performing loans, and a reduction in the attention rate [1]. - The bank's revenue for 2023 and Q1 2024 was 45.2 billion yuan and 13.3 billion yuan, respectively, with year-on-year growth of 1.2% and 2.8% [1]. - The net profit attributable to shareholders for the same periods was 18.5 billion yuan and 5.7 billion yuan, reflecting year-on-year growth of 0.5% and 5.1% [1]. - The bank's non-performing loan ratio at the end of Q1 2024 was 0.83%, with a provision coverage ratio of 357% [1]. Summary by Sections Financial Performance - In Q1 2024, net interest income, fee income, and other non-interest income showed year-on-year changes of -9.0%, +28.8%, and +15.0%, respectively [1]. - The total assets, total loans, and total deposits grew by 11.5%, 14.6%, and 2.9% year-on-year [1]. - The bank's net interest margin for 2023 was 2.04%, a decrease of 15 basis points from the first half of 2023 [1]. Loan and Deposit Trends - Loan growth remains robust, particularly in Jiangsu province, where the loan scale increased by 16.1% year-on-year [1]. - The proportion of demand deposits increased by 1.6 percentage points, while time deposits decreased by 1.6 percentage points compared to the end of 2023 [1]. Asset Quality - The non-performing loan ratio and attention rate decreased by 7 basis points and 13 basis points, respectively, compared to the end of 2023 [1]. - The bank's real estate loans and mortgage loans had non-performing rates of 0.61% and 0.43%, both lower than the overall non-performing rate [1]. Earnings Forecast - The projected earnings per share (EPS) for 2024, 2025, and 2026 are 1.88 yuan, 1.98 yuan, and 2.13 yuan, respectively [2]. - The report forecasts a revenue growth rate of 3.5% for 2024, 5.1% for 2025, and 6.8% for 2026 [2].