BANK OF SUZHOU(002966) 平安证券·2025-02-11 07:43Investment Rating - The investment rating for Suzhou Bank is "Strongly Recommended" [1][15]. Core Views - Suzhou Bank reported a 3.01% year-on-year increase in operating revenue and a 10.2% increase in net profit attributable to shareholders for the year 2024 [4][9]. - The bank's total assets grew by 15.3% year-on-year, with loans increasing by 13.6% and deposits by 14.6% as of the end of 2024 [4][9]. - The asset quality is improving, with a non-performing loan (NPL) ratio decreasing to 0.83% and a provision coverage ratio rising to 483% by the end of 2024 [9][11]. Summary by Sections Financial Performance - Operating net income for 2024 is projected at 12,068 million yuan, with a year-on-year growth of 2.2% [6]. - Net profit attributable to shareholders is expected to reach 5,080 million yuan in 2024, reflecting a growth of 10.4% [6][13]. - The bank's return on equity (ROE) is forecasted to be 12.6% in 2024, increasing to 13.2% by 2026 [6][13]. Asset Quality - The NPL ratio is expected to improve slightly from 0.84% in 2023 to 0.81% in 2025 [13]. - The provision coverage ratio is projected to decrease from 523% in 2023 to 432% in 2025, indicating a solid buffer against potential loan losses [13]. Growth Projections - The bank's total assets are expected to grow from 698,907 million yuan in 2024 to 805,568 million yuan in 2025 [13]. - Loan growth is anticipated to be robust, with projections of 17% growth rates for the coming years [13]. - The bank's earnings per share (EPS) are forecasted to be 1.28 yuan in 2024, increasing to 1.57 yuan by 2026 [6][9]. Market Position - Suzhou Bank benefits from a favorable regional environment that supports strong credit demand, alongside ongoing expansion in personnel and branches to enhance its competitive edge in wealth management [9].