Changshu Bank(601128) 民生证券·2024-10-24 16:00Investment Rating - The report maintains a "Recommended" rating for the company, with a closing price of 7.17 yuan on October 24, 2024, corresponding to 0.7 times the 2024 PB [3][4]. Core Views - The company continues to achieve high growth in performance, with a robust provision level that supports a low non-performing loan ratio. The expected EPS for 2024-2026 is projected to be 1.41, 1.65, and 1.91 yuan respectively [3][4]. - The company has a strong risk compensation ability, which is crucial for maintaining low asset quality indicators despite some fluctuations in forward-looking metrics [3][4]. Summary by Sections Financial Performance - For the first three quarters of 2024, the company reported revenue of 8.4 billion yuan, a year-on-year increase of 11.3%, and a net profit attributable to shareholders of 3 billion yuan, up 18.2% year-on-year. The non-performing loan ratio stands at 0.77%, with a provision coverage ratio of 528% [2][3]. - The net interest income growth rate has rebounded, with a year-on-year increase of 6.2% and non-interest income rising by 44.2%. However, the growth rate of non-interest income has slowed due to market volatility affecting the valuation of financial assets [2][3]. Asset Quality and Loan Growth - Total assets and total loans increased by 10.4% and 9.7% year-on-year respectively, although the growth rates have decreased compared to the end of the first half of 2024. Corporate loans grew by 19.3%, while personal loans increased by 3.2% [2][3]. - The company has adjusted its credit issuance strategy, focusing on risk control, which has led to a decrease in the proportion of loans under 10 million yuan [2][3]. Interest Margin and Deposit Growth - The net interest margin for the first three quarters of 2024 is 2.75%, down 4 basis points from the end of the first half of 2024. The decline in the proportion of time deposits may have contributed to this trend [2][3]. - Deposit growth has slightly improved compared to the first half of 2024, likely due to adjustments in deposit rates attracting interest-sensitive customers [2][3]. Future Outlook - The company is expected to maintain a strong performance trajectory, with projected revenue growth rates of 12.1%, 11.9%, and 11.8% for the years 2024-2026. The net profit growth rates are forecasted at 19.6%, 18.0%, and 16.8% respectively [3][4].