2024年一季报点评：价值源于效益，PPOP高增长21%

Investment Rating - The report maintains a "Buy" rating for Changshu Bank [4][5]. Core Insights - Changshu Bank achieved a 12.0% year-on-year increase in operating income for Q1 2024, with net interest income growing by 5.6% and net profit attributable to shareholders increasing by 19.8% [5][6]. - The bank's non-performing loan (NPL) ratio slightly increased by 1 basis point to 0.76%, while the provision coverage ratio rose to 539%, indicating strong asset quality [5][6]. - The report highlights a significant reduction in the cost-to-income ratio, which decreased by 4.9 percentage points to 35.3%, contributing to a high growth in Pre-Provision Operating Profit (PPOP) of 21% [5][6]. Summary by Sections Financial Performance - In Q1 2024, Changshu Bank's loans grew by 5.8% compared to the beginning of the year, with corporate loans increasing by 10.2% and personal loans by 2.3% [5][6]. - Deposits saw a high growth of 14.4%, marking the highest growth rate in recent years, with the proportion of time deposits slightly increasing to 79.7% [5][6]. Interest Margin and Cost Management - The net interest margin decreased by 3 basis points to 2.83%, which remains competitive within the industry [5][6]. - The bank's management has focused on enhancing asset quality and reducing costs, leading to a significant improvement in profitability metrics [5][6]. Asset Quality and Risk Management - The NPL ratio remains stable, with expectations for asset quality to hold steady despite slight fluctuations in the macroeconomic environment [5][6]. - The bank's robust risk management practices have allowed it to maintain a high provision coverage ratio, which is rare among peers [5][6]. Investment Outlook - The report projects a revenue growth of 11.1% and a net profit growth of 18.3% for 2024, indicating a strong performance relative to the industry [5][6]. - Based on the closing price on April 30, 2024, the bank is considered undervalued with a projected valuation of 0.76 times price-to-book ratio [5][6].