无锡银行：区域经济发达，营收增速回升

Investment Rating - The report assigns an "Outperform the Market" rating to the company, marking its first coverage [40][42]. Core Insights - The company has shown a recovery in revenue growth, with Q1 2024 revenue reaching 1.304 billion yuan, a year-on-year increase of 5.02% [40][86]. - The net profit for Q1 2024 was 599 million yuan, reflecting a year-on-year growth of 9.41% [40][86]. - The bank's asset quality remains strong, with a non-performing loan ratio of 0.79% and a provision coverage ratio of 515.35% as of Q1 2024 [40][24]. Summary by Sections Company Overview - The company is a local commercial bank based in Wuxi, established in 1995 and listed on the Shanghai Stock Exchange in 2016 [44][40]. - It primarily serves small and medium-sized enterprises in the region and has expanded its operations to nearby cities [44][48]. Financial Performance - For the full year 2023, the company reported a revenue of 4.538 billion yuan, a 1.28% increase year-on-year, and a net profit of 2.2 billion yuan, up 9.96% [40][86]. - The bank's total assets reached 245.3 billion yuan by the end of Q1 2024, with loans totaling 150 billion yuan and deposits of 204.9 billion yuan [40][44]. Loan Structure - The bank's loan portfolio is heavily weighted towards corporate loans, which account for approximately 70% of total loans [5][54]. - Retail loans have been growing, with personal loans increasing from 13.99% of total loans in 2017 to 18.34% in 2023 [56][57]. Profitability Metrics - The bank's return on equity (ROE) for Q1 2024 was 12.27%, slightly down from the previous year [40][86]. - The net interest margin has been under pressure, estimated at 1.44% for Q1 2024, down 14 basis points year-on-year [40][87]. Future Outlook - The report forecasts a steady growth in net profit for 2024-2026, with expected figures of 2.399 billion yuan, 2.590 billion yuan, and 2.806 billion yuan respectively [40][99]. - The bank is expected to continue benefiting from the robust economic environment in the Jiangsu province, with a projected asset growth rate of 9.0% for the next three years [89][40].