Changshu Bank(601128) 中泰证券·2024-05-15 02:00Investment Rating - The report provides a positive investment outlook for Changshu Bank, suggesting to pay attention to the bank's performance and growth potential [2][12]. Core Views - Changshu Bank's revenue growth remains strong, with a year-on-year increase of 12.0% in Q1 2024, driven by a 5.6% increase in net interest income and a significant 70% increase in non-interest income [3][6]. - The bank's net profit attributable to shareholders grew by 19.8% year-on-year, indicating robust performance resilience [3][10]. - The bank's asset quality remains strong, with a slight increase in non-performing loan (NPL) ratio to 0.76%, but a notable improvement in the NPL generation rate [10][11]. Revenue and Profitability - Revenue for 2024 is projected to reach 10,797 million yuan, with a growth rate of 9.4% [2]. - Net profit is expected to be 3,915 million yuan in 2024, reflecting a year-on-year growth of 19.4% [2]. - Earnings per share (EPS) is forecasted to be 1.43 yuan for 2024, up from 1.20 yuan in 2023 [2]. Interest Income and Margin - The bank's net interest income increased by 14.9% quarter-on-quarter in Q1 2024, with the annualized net interest margin rising by 25 basis points to 2.77% [6][7]. - The yield on assets increased by 24 basis points to 4.92%, while the cost of liabilities decreased by 1 basis point to 2.35% [6]. Asset and Liability Growth - In Q1 2024, the bank's loan growth was primarily supported by corporate loans, with total new loans of 128 billion yuan, an increase of 17 billion yuan year-on-year [7][8]. - Deposits grew significantly, with a quarter-on-quarter increase of 14.4%, totaling 355.8 billion yuan in new deposits [7][9]. Asset Quality - The NPL ratio slightly increased to 0.76%, but the NPL generation rate improved significantly, indicating better asset quality management [10][11]. - The bank's provision coverage ratio stood at 539.17%, reflecting strong risk mitigation capabilities [10][11]. Capital Adequacy - As of Q1 2024, the core Tier 1 capital adequacy ratio was 10.15%, showing a slight decrease from the previous quarter [12]. Shareholder Structure - The report notes changes in the top ten shareholders, with the introduction of new investors and some reductions in holdings by existing shareholders [13]. Investment Recommendation - The bank's business model focuses on personal loans, with strong risk control and market expansion strategies, suggesting a favorable investment outlook [12].