JRCB(002807) 光大证券·2024-04-28 03:02Investment Rating - The report maintains an "Accumulate" rating for Jiangyin Bank with a current price of 3.85 CNY [1] Core Views - Jiangyin Bank demonstrates strong resilience in earnings growth and stable asset quality, with a focus on expanding its retail and small business segments [24] - The bank's asset quality remains robust, with a non-performing loan (NPL) ratio of 0.97% and a coverage ratio of 425.3% as of Q1 2024, indicating strong risk mitigation capabilities [4][12] - The bank's revenue for Q1 2024 reached 1.06 billion CNY, reflecting a year-on-year growth of 2.6%, while net profit increased by 12.7% to 350 million CNY [20] Summary by Sections Financial Performance - Jiangyin Bank's Q1 2024 revenue, pre-provision profit, and net profit grew by 2.6%, 3.1%, and 12.7% year-on-year, respectively [8] - The bank's net interest income and non-interest income saw year-on-year changes of -12.4% and 55.9%, respectively, indicating a shift towards non-interest revenue sources [8] Asset Quality - As of Q1 2024, the bank's NPL ratio and attention rate were 0.97% and 0.95%, respectively, both showing a decline compared to the end of 2023 [4] - The bank's credit impairment losses for the quarter were 440 million CNY, down from the previous year, indicating improved asset quality management [4] Capital Adequacy - The core Tier 1, Tier 1, and total capital adequacy ratios were reported at 14.2%, 14.2%, and 15.3%, respectively, all showing an increase from the previous year [12] - The bank's capital position is supported by a strong internal capital generation capacity, with a risk-weighted asset growth rate of 5.9% as of Q1 2024 [12] Deposit and Loan Growth - Jiangyin Bank's deposits grew by 10.7% year-on-year, with a significant increase in personal deposits, which accounted for 59.4% of total deposits [9] - The bank's loan growth was primarily driven by corporate loans, while retail loans showed a decline, reflecting a continued trend of stronger corporate lending [21] Non-Interest Income - Non-interest income for Q1 2024 reached 350 million CNY, up 55.9% year-on-year, driven by increased fees and commissions [23] - The bank's investment income also saw a significant increase, contributing positively to overall revenue [23] Valuation and Forecast - The report forecasts EPS for 2024-2026 at 0.86 CNY, 0.97 CNY, and 1.07 CNY, with corresponding PB valuations of 0.53, 0.48, and 0.43 [24] - The current market conditions and the bank's strategic focus on retail and small business segments are expected to support future growth [24]