Changshu Bank(601128) 新浪财经·2025-03-31 00:28Core Viewpoint - Changshu Bank reported strong financial performance for 2024, with revenue, pre-provision profit, and net profit reaching 10.91 billion, 6.85 billion, and 3.81 billion respectively, showing year-on-year growth of 10.5%, 10.9%, and 16.2% [1] Revenue and Profitability - The bank's revenue maintained resilience with a total of 10.91 billion, reflecting a year-on-year increase of 10.5%, although the growth rate slowed by 0.8 percentage points compared to the previous three quarters [1] - Net interest income grew by 7.5% year-on-year, with a quarter-on-quarter increase of 1.4%, primarily due to a narrowing decline in net interest margin [1] - Other non-interest income increased by 25.9% year-on-year but saw a quarter-on-quarter decline of 14.3%, which slightly dragged down overall revenue growth [1] - The net profit attributable to shareholders rose by 16.2% year-on-year, positioning the bank's performance among the top tier of listed banks [1] Asset Quality and Loan Performance - Total assets and loans grew by 9.6% and 8.3% year-on-year, respectively, but the growth rates slowed by 0.8 percentage points and 1.4 percentage points quarter-on-quarter [2] - Corporate and retail loans increased by 16.1% and 2.2% year-on-year, with bill discounting up by 23.8%, indicating weak retail demand [2] - Retail loan categories such as operating loans, consumer loans, and credit card loans saw reductions, while mortgage loans experienced a slight increase [2] - The bank maintained a proactive approach to managing small and micro business loans, focusing on risk-reward balance while increasing the proportion of credit guarantee loans [2] Liability and Deposit Trends - Deposits grew by 15.6% year-on-year, but the proportion of demand deposits decreased to 18.1%, down by 0.6 percentage points [3] - The interest rate on deposits fell by 8 basis points to 2.2% as high-cost deposits matured and were repriced [3] - The net interest margin decreased by 15 basis points to 2.71%, yet remained at a leading level within the industry [3] Risk Exposure and Asset Quality - The non-performing loan (NPL) ratio stood at 0.77%, unchanged from the previous quarter, indicating overall strong asset quality [4] - However, retail loan risks are still a concern, with the NPL ratio for retail loans rising to 0.94% [4] - The bank's strict NPL recognition standards and sufficient provision coverage, which remains above 500%, mitigate the impact of asset quality pressures on profitability [4] Investment Outlook - Due to weak effective credit demand and ongoing asset quality pressures in small micro loans, the bank slightly adjusted its profit forecasts for 2025-2028 to 15.1%, 14.7%, and 14.7% respectively [5] - The closing price on March 26 was 6.96 yuan per share, corresponding to a 0.65 times price-to-book (PB) ratio for 2025 [5] - The bank's core advantages in small micro business, regional economic strength, and robust provision buffer support a "strong buy" rating [5]