Jiangsu Bank Research Analysis (As of Q3 2025, No Trading Recommendations)

I. Profitability and Scale
Jiangsu Bank is a leading city commercial bank in the Yangtze River Delta region. In the first three quarters of 2025, total assets reached 4.93 trillion yuan, up 24.68% year-over-year, ranking among the top tier of listed city commercial banks. Operating revenue was 671.83 billion yuan with net profit attributable to parent company of 305.83 billion yuan, representing year-over-year growth of 7.83% and 8.32% respectively, with profitability growth significantly outperforming industry averages.

Profit growth is primarily driven by scale expansion, with net interest income of 498.68 billion yuan, up 19.61% year-over-year. Non-interest income showed double-digit growth in fee and commission income, supported by wealth management, investment banking, and inclusive finance businesses. The annualized ROE for the first three quarters was approximately 15.6%, placing profitability in the first tier among city commercial banks. Liability management is effective, with declining deposit costs and decreasing proportion of interbank liabilities, resulting in a more stable liability structure.

II. Asset Quality
Asset quality continues to improve with a non-performing loan ratio of 0.84%, declining for nine consecutive years since listing, placing it in the industry's best range. The loan loss reserve ratio stands at 322.62%, providing ample risk coverage far exceeding regulatory minimums. Special-mention loans account for 1.28% of total loans, with overall potential risks under control. Credit costs remain stable with prudent impairment provisions, demonstrating strong asset quality resilience.

III. Net Interest Margin and Capital
Influenced by industry-wide rate declines, net interest margin faced slight pressure, with Q3 single-quarter net interest margin at 1.59%, narrowing sequentially with a smaller quarter-over-quarter decline. The margin is gradually stabilizing and outperforming some peers. The core tier-1 capital adequacy ratio stands at 8.61%, meeting regulatory requirements but with limited safety margins. The company supplements capital through profit retention and issuance of capital instruments to support continued expansion.

IV. Core Strengths
Deep market presence in Jiangsu and the Yangtze River Delta with strong regional economic resilience and robust demand for corporate and micro-enterprise financing, providing a stable customer base. Mature risk control system and superior asset quality. Stable profitability and leading ROE with outstanding cost control capabilities, achieving synchronized growth in scale and profitability.

V. Core Challenges
Net interest margin faces continued downward pressure under interest rate liberalization. High growth leads to relatively rapid capital consumption. High concentration of regional business creates exposure to local economic and cyclical fluctuations. Non-interest income is vulnerable to market volatility.

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