Bank Of Jiangsu(SH:600919) INDUSTRIAL SECURITIES·2024-04-28 03:02Investment Rating - The report maintains a "Buy" rating for Jiangsu Bank [1][6]. Core Views - The performance growth slowed down in Q4 2023, but Q1 2024 saw double-digit growth in revenue and profit driven by high investment income [1][4]. - The bank's asset quality remains stable, with a non-performing loan ratio of 0.91% at the end of 2023 and Q1 2024 [2][5]. - The bank's total assets and loans grew significantly, with total assets increasing by 14.2% year-on-year at the end of 2023 and 15.1% at the end of Q1 2024 [1][4]. Summary by Sections Financial Performance - In 2023, Jiangsu Bank achieved a revenue of 74.3 billion yuan, a year-on-year increase of 5.3%, and a net profit attributable to shareholders of 28.8 billion yuan, up 13.3% [3][4]. - For Q4 2023, the bank's revenue and net profit decreased by 7.1% and 36.8% year-on-year, respectively, primarily due to a decline in net interest income and increased impairment provisions [1][4]. - In Q1 2024, revenue and net profit grew by 11.7% and 10.0% year-on-year, respectively, supported by a 74.9% increase in other non-interest income [1][4]. Loan and Asset Growth - Total assets grew by 14.2% year-on-year at the end of 2023 and by 15.1% at the end of Q1 2024, with loans increasing by 12.3% and 13.2% respectively [1][4]. - The bank's loan composition in 2023 was 79% corporate (including bills) and 21% retail, with significant contributions from manufacturing and infrastructure loans [1][4]. Interest Margin and Cost Management - The net interest margin for 2023 was 1.98%, down 34 basis points year-on-year, influenced by a decrease in loan yield and deposit cost [2][4]. - The cost-to-income ratio for Q1 2024 was 22.0%, an increase of 1.7 percentage points year-on-year, attributed to higher investments in financial technology [1][4]. Asset Quality and Capital Adequacy - The non-performing loan ratio remained stable at 0.91% as of the end of 2023 and Q1 2024, with a slight increase in the attention ratio [2][5]. - As of Q1 2024, the core Tier 1, Tier 1, and total capital adequacy ratios were 9.18%, 10.84%, and 12.82%, respectively, supported by successful conversion of convertible bonds [2][6]. Earnings Forecast - The earnings per share (EPS) for 2024 and 2025 are projected to be 1.68 yuan and 1.85 yuan, respectively, with a projected book value per share of 13.22 yuan by the end of 2024 [2][6].