Jiangsu Bank Investment 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. As of the first three quarters of 2025, total assets reached 4.93 trillion yuan, a year-on-year increase of 24.68%, ranking among the top listed city commercial banks. Operating revenue was 671.83 billion yuan and net profit attributable to parent company was 305.83 billion yuan, with year-on-year growth rates of 7.83% and 8.32% respectively, with profitability growth significantly outperforming industry averages.

Profitability drivers are primarily driven by scale expansion, with net interest income of 498.68 billion yuan, a year-on-year increase of 19.61%; net fee and commission income showing double-digit growth, supported by wealth management, investment banking, and inclusive finance businesses for non-interest income. Annualized ROE for the first three quarters was approximately 15.6%, placing earning power in the first tier among city commercial banks. Effective liability-side management with declining deposit costs and reduced interbank liability ratios, creating a more stable liability structure.

II. Asset Quality
Asset quality continues to improve, with a non-performing loan ratio of 0.84%, declining consecutively for 9 years since listing, placing it in the industry's optimal range; loan loss provision coverage ratio of 322.62%, with ample risk coverage, significantly exceeding regulatory minimums. Watch-list loans account for 1.28%, with overall potential risks manageable. Credit costs remain stable with prudent impairment provisions, demonstrating strong asset quality resilience.

III. Net Interest Margin and Capital
Affected by industry-wide interest rate declines, net interest margin faces modest pressure, with Q3 single quarter net interest margin of 1.59%, narrowing quarter-on-quarter decline rate, with margins gradually stabilizing and outperforming certain peers. Core Tier 1 capital adequacy ratio of 8.61%, meeting regulatory requirements but with tight safety margins; the company supplements capital through profit retention and capital instrument issuance to support sustained expansion.

IV. Core Strengths
Deep entrenchment in Jiangsu and the Yangtze River Delta region with strong regional economic resilience and robust demand for corporate and micro-enterprise services, establishing a solid customer base; mature risk control system with excellent asset quality; stable profitability with leading ROE, outstanding cost control capabilities, with scale and profitability growth in tandem.

V. Core Pressures
Net interest margin faces continued downward pressure under interest rate marketization; high growth leads to faster capital consumption; relatively high regional business concentration, subject to local economic and cyclical fluctuations; non-interest income susceptible to market volatility.

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