Changshu Bank(601128) 国投证券·2024-05-08 06:00Investment Rating - The investment rating for Changshu Bank is "Buy - A" with a target price of 9.32 CNY, indicating a potential upside from the current price of 7.93 CNY [4][8]. Core Views - Changshu Bank reported a strong performance in Q1 2024, with a year-on-year increase in operating income of 12.01%, pre-provision profit growth of 20.76%, and net profit attributable to shareholders rising by 19.80% [1][8]. - The bank's asset quality remains strong, with a non-performing loan ratio of 0.76% and a provision coverage ratio of 539.18%, indicating robust risk mitigation capabilities [7][8]. Summary by Sections Financial Performance - In Q1 2024, Changshu Bank's net profit growth accelerated by 4.91 percentage points year-on-year, driven by the expansion of interest-earning assets, increased non-interest income, and a decrease in the cost-to-income ratio [1]. - The bank's total assets grew by 15.05% year-on-year, with a net increase of 30.2 billion CNY in the quarter, primarily from financial investments [2]. - The total loan amount accounted for 64.51% of total assets, with corporate loans showing a year-on-year growth of 18.66% [2]. Income and Expenses - Non-interest income surged by 70.90% year-on-year, with significant contributions from commission income and investment gains [7]. - The cost-to-income ratio improved to 35.27%, reflecting better operational efficiency [7][12]. Interest Margin - The net interest margin for Q1 2024 was 2.83%, ranking first among listed banks, despite a year-on-year decline of 19 basis points [3][7]. - The bank's interest-earning asset yield was 5.03%, showing a slight improvement from the previous quarter [3]. Future Outlook - The bank is expected to maintain its focus on reducing deposit costs and optimizing the deposit structure, which should stabilize the interest margin throughout 2024 [7]. - Revenue growth is projected at 11.00% for 2024, with net profit growth expected at 19.09% [8].