BANK OF SUZHOU(SZ:002966) INDUSTRIAL SECURITIES·2024-04-30 02:02Investment Rating - The report maintains an "Accumulate" rating for Suzhou Bank [1][6] Core Views - The bank's net interest margin for 2023 is 1.68%, down 19 basis points year-on-year and 3 basis points quarter-on-quarter, primarily due to the reduction in loan rates and the impact of LPR adjustments [1][4] - The bank's asset quality remains strong, with a non-performing loan ratio of 0.84% at the end of 2023 and Q1 2024, while the provision coverage ratio decreased slightly to 492% in Q1 2024 [1][5] - The bank's total assets grew by 14.7% year-on-year at the end of 2023 and 16.8% year-on-year at the end of Q1 2024, with loans increasing by 17.4% and 20.3% respectively [2][4] Summary by Sections Financial Performance - In 2023, the bank achieved a revenue of 11.9 billion yuan, a year-on-year increase of 0.9%, and a net profit attributable to shareholders of 4.6 billion yuan, up 17.4% [3][4] - For Q1 2024, the bank reported a revenue of 3.23 billion yuan, a 2.1% increase year-on-year, and a net profit of 1.46 billion yuan, up 12.3% [3][4] Asset Quality - The non-performing loan ratio remained stable at 0.84% for both the end of 2023 and Q1 2024, while the attention loan ratio decreased to 0.77% in Q1 2024 [5] - The provision coverage ratio was 523% at the end of 2023 and decreased to 492% in Q1 2024 [5] Capital Adequacy - As of the end of Q1 2024, the core Tier 1 capital adequacy ratio was 9.39%, the Tier 1 capital adequacy ratio was 10.77%, and the total capital adequacy ratio was 13.92% [5] Earnings Forecast - The bank's EPS is projected to be 1.39 yuan in 2024 and 1.54 yuan in 2025, with a projected PB of 0.59 times by the end of 2024 [6][8]