Changshu Bank(601128) 兴业证券·2024-05-03 04:02Investment Rating - The report maintains a "Buy" rating for the company [2]. Core Insights - The company reported a significant increase in performance, with Q1 2024 revenue growing by 12.0% year-on-year and net profit attributable to shareholders increasing by 19.8%, leading to a return on equity (ROE) of 14.74% [3][4]. - Loan growth remains robust, with a year-on-year increase of 15.1% in Q1 2024, supported by a total of 12.8 billion yuan in new loans [4]. - The net interest margin showed a quarter-on-quarter recovery, reaching 2.83%, despite a year-on-year decline of 19 basis points [4]. - Asset quality remains stable, with a non-performing loan ratio of 0.76% and a provision coverage ratio of 539% [4]. Summary by Sections Financial Performance - In Q1 2024, the company achieved a revenue of 2.7 billion yuan and a net profit of 952 million yuan, reflecting a year-on-year growth of 12.0% and 19.8% respectively [3][4]. - The cost-to-income ratio improved to 35.3%, while credit impairment losses increased by 21.1% [4]. Loan and Deposit Growth - New loans totaled 12.8 billion yuan in Q1 2024, with corporate loans growing by 13.3% and retail loans by 12.4% [4]. - Deposits increased by 18.1% year-on-year, with approximately 35 billion yuan in new deposits primarily from savings [4]. Interest Margin and Cost Management - The net interest margin for Q1 2024 was 2.83%, with a notable quarter-on-quarter increase attributed to the repricing of existing mortgage loans [4]. - The company is actively managing its deposit structure to optimize funding costs [4]. Asset Quality and Capital Adequacy - The non-performing loan ratio increased slightly by 1 basis point to 0.76%, while the provision coverage ratio improved to 539% [4]. - As of the end of Q1 2024, the core Tier 1, Tier 1, and total capital adequacy ratios were 10.15%, 10.21%, and 13.51% respectively [2][4]. Earnings Forecast - The earnings per share (EPS) estimates for 2024 and 2025 have been adjusted to 1.42 yuan and 1.64 yuan, respectively, with an expected book value per share of 10.24 yuan by the end of 2024 [2][4].