BANK OF SUZHOU(SZ:002966) KAIYUAN SECURITIES·2024-04-28 04:01Investment Rating - The investment rating for Suzhou Bank is "Buy" (maintained) [2][3] Core Views - Suzhou Bank's revenue growth has shown signs of recovery, with a reported revenue of 11.9 billion yuan in 2023, reflecting a year-on-year increase of 0.88%. The revenue growth rate for Q4 2023 and Q1 2024 was -2.20% and +2.11%, respectively, indicating a rebound [3] - The net profit attributable to shareholders increased by 12.29% in Q1 2024, following a 2.46% growth in Q4 2023, as the pressure from provisioning decreased [3] - The bank's total assets reached 648.2 billion yuan by the end of Q1 2024, up 16.80% year-on-year, driven by a robust loan growth of 19.82% [4] - The asset quality remains strong, with a non-performing loan (NPL) ratio of 0.84% as of the end of 2023 and Q1 2024, maintaining stability over three consecutive quarters [5] Summary by Sections Financial Performance - In 2023, Suzhou Bank achieved a revenue of 11.9 billion yuan, with a slight slowdown in growth. The forecast for net profit attributable to shareholders for 2024-2026 is 5.35 billion, 6.35 billion, and 7.31 billion yuan, respectively, with year-on-year growth rates of 16.28%, 18.71%, and 15.12% [3][9] - The bank's net interest margin (NIM) was 1.68% in 2023 and decreased to 1.52% in Q1 2024, indicating slight pressure on interest income [4][21] Asset Quality - The NPL ratio remained stable at 0.84% for both the end of 2023 and Q1 2024, with a decrease in the attention rate to 0.77% in Q1 2024. The corporate loan NPL ratio decreased to 0.75%, while the retail loan NPL ratio increased to 1.02% [5][21] - The provisioning coverage ratio was 491.66% at the end of Q1 2024, indicating a strong buffer against potential loan losses [5] Market Position - Suzhou Bank's market capitalization is approximately 26.14 billion yuan, with a current share price of 7.13 yuan. The stock has shown a trading range between 6.09 and 7.85 yuan over the past year [6][9]