Changshu Bank(601128) 民生证券·2024-04-30 09:00Investment Rating - The report maintains a "Recommended" rating for Changshu Bank, with a closing price of 7.95 yuan as of April 30, 2024, corresponding to 0.8 times the 2024 PB [2][3]. Core Views - Changshu Bank has demonstrated high growth in performance, with a revenue of 2.7 billion yuan in Q1 2024, representing a year-on-year increase of 12.0%, and a net profit attributable to shareholders of 1 billion yuan, up 19.8% year-on-year [1]. - The bank's asset quality remains strong, with a non-performing loan ratio of 0.76% and a provision coverage ratio of 539% as of Q1 2024, indicating robust risk mitigation capabilities [1]. - The bank's net interest margin (NIM) has shown a narrowing decline, decreasing by 3 basis points to 2.83% in Q1 2024, with expectations for continued stabilization in the future [1][2]. Summary by Sections Financial Performance - In Q1 2024, Changshu Bank's revenue and net profit growth rates are 12.0% and 19.8% respectively, maintaining a leading position among peers [1]. - The bank's total assets, total loans, and total deposits grew by 15.1%, 15.0%, and 18.0% year-on-year respectively [1]. Income Structure - Net interest income increased by 5.6% year-on-year, while non-interest income saw a significant rise of 635.4%, primarily due to low base effects [1]. - The bank's management fees are expected to continue decreasing, supporting overall performance [2]. Asset Quality - The non-performing loan ratio slightly increased by 1 basis point to 0.76%, while the attention ratio rose by 7 basis points to 1.24% [1]. - The provision coverage ratio increased by 1.3 percentage points to 539%, indicating strong risk absorption capacity [1]. Future Projections - Earnings per share (EPS) are projected to be 1.42, 1.69, and 2.02 yuan for the years 2024, 2025, and 2026 respectively [2]. - The bank's total assets are expected to reach 3,854 billion yuan in 2024, with a steady growth trajectory anticipated [10].