Changshu Bank(601128) 东海证券·2024-05-05 23:30Investment Rating - The report maintains a "Buy" rating for the company [2][6]. Core Views - The company's Q1 2024 performance shows strong revenue growth and improved profitability, with operating income reaching 2.7 billion yuan, up 12.01% year-on-year, and net profit attributable to ordinary shareholders at 952 million yuan, up 19.80% year-on-year [4][6]. - The total asset scale increased by 15.05% year-on-year to 364.8 billion yuan, indicating robust asset expansion [4]. - The bank's non-performing loan (NPL) ratio remains low at 0.76%, with a provision coverage ratio of 539.18%, reflecting strong asset quality [4][6]. - The net interest margin (NIM) is reported at 2.83%, showing resilience despite a year-on-year decline of 19 basis points [5][6]. - Investment income significantly increased by 77% year-on-year, contributing 16.01% to total revenue, driven by favorable market conditions [5][6]. Summary by Sections Financial Performance - Q1 2024 operating income was 2.7 billion yuan, a 12.01% increase year-on-year, while net profit was 952 million yuan, up 19.80% year-on-year [4]. - Total assets reached 364.8 billion yuan, growing 15.05% year-on-year, with a loan total of 235.2 billion yuan, reflecting a 15.01% year-on-year increase [4][5]. Asset Quality - The non-performing loan ratio stands at 0.76%, with a slight increase of 1 basis point from the previous quarter [4][6]. - The provision coverage ratio improved to 539.18%, indicating a strong buffer against potential loan losses [6]. Deposit and Loan Structure - Deposits grew by 18.02% year-on-year to 283.5 billion yuan, with a notable decrease in the proportion of time deposits, suggesting easing pressure on deposit costs [4][5]. - The loan structure shows a strong demand for corporate loans, with personal loans experiencing weaker growth [4][5]. Interest Margin and Investment Income - The net interest margin is reported at 2.83%, with a year-on-year decline of 19 basis points, but an increase of 23 basis points from the previous quarter [5][6]. - Investment income rose significantly, contributing 16.01% to total revenue, driven by a favorable bond market [5][6]. Future Outlook - The report projects revenue for 2024-2026 to be 10.87 billion, 12.06 billion, and 13.66 billion yuan respectively, with net profit estimates of 3.87 billion, 4.41 billion, and 5.24 billion yuan [6].