BANK OF SUZHOU(002966) 招商证券·2025-04-29 13:33Investment Rating - The report maintains a "Strong Buy" rating for Suzhou Bank [4] Core Views - The bank's overall performance remains stable with revenue, PPOP, and net profit growth rates of 3.01%, 1.59%, and 10.16% year-on-year for 2024, and 0.76%, 5.93%, and 6.80% year-on-year for Q1 2025 respectively [1][2] - The bank's asset quality is solid, with a non-performing loan ratio of 0.83% and a provision coverage ratio of 447.2% as of Q1 2025 [2][3] - The bank's capital adequacy ratio has improved following the conversion of convertible bonds, providing a stronger capital buffer for future growth [2][3] Summary by Sections 1. Performance Metrics - For 2024, the bank reported total revenue of 12,224 million yuan, with a year-on-year growth of 3.01% [1][13] - The net profit attributable to shareholders for 2024 was 5,068 million yuan, reflecting a growth of 10.2% year-on-year [8][14] 2. Non-Interest Income - The bank's net fee income turned positive in Q1 2025, with a year-on-year increase of 22.48%, recovering from a decline of 14.48% in 2024 [2][31] - Other non-interest income saw a decline of 7.8% in Q1 2025, primarily due to high base effects from the previous year [3][31] 3. Interest Margin and Asset-Liability Management - The net interest margin for 2024 and Q1 2025 was 1.38% and 1.34% respectively, with a slight decline but manageable [3][14] - The bank's interest-earning assets grew by 12.30% year-on-year in 2024, with loans increasing by 13.62% [2][3] 4. Asset Quality - The non-performing loan ratio remained stable at 0.83% as of Q1 2025, with a new generation rate of 0.36% [2][3] - The provision coverage ratio was reported at 447.2%, indicating a strong buffer against potential loan losses [2][3] 5. Capital and Shareholder Returns - The core Tier 1 capital adequacy ratio improved to 9.80% in Q1 2025, up from 9.77% in the previous quarter [2][3] - The bank's dividend payout ratio for 2024 was 34.07%, positioning it among the top listed banks [2][3]