The third-quarter reports of the 10 A-listed rural commercial banks in 2025 have been disclosed. As the largest rural commercial bank in Nanjing, Jiangsu Zijin Rural Commercial Bank (601860.SH) has drawn market attention with its Q3 performance.
On the evening of October 30, Zijin Bank released its Q3 2025 financial report. The report shows that in the first three quarters of the year, the bank's total assets reached 286.034 billion yuan, a year-on-year increase of 5.96%. However, its operating revenue declined by 5.42% to 3.273 billion yuan, while net profit attributable to shareholders dropped by 10.9% to 1.204 billion yuan.
This marks the first time since its listing that Zijin Bank has reported a simultaneous decline in both revenue and net profit despite continued asset expansion.
Looking solely at Q3 performance, Zijin Bank's revenue fell by 18.44% year-on-year to 881 million yuan, and net profit attributable to shareholders plunged by 33.73% to 291 million yuan. Q3 2025 became the quarter with the steepest profit decline since the bank's IPO.
In August 2025, Zijin Bank underwent a board reshuffle, with Shao Hui re-elected as chairman of the fifth board. Meanwhile, Que Zhenghe and Yang Yuhong joined as new directors. Que Zhenghe was also appointed as the new president, pending regulatory approval.
The bank's profitability indicators present a challenge for both Chairman Shao Hui and incoming President Que Zhenghe, who must find ways to boost earnings amid expansion.
**Profitability Under Pressure** Zijin Bank's mid-2025 report already showed slowing profit growth, with net profit up just 0.12% and revenue rising 0.49% year-on-year—a sharp drop from 2024’s 8.08% revenue growth and 4.62% profit growth.
However, Q3 2025 saw outright declines: revenue fell 5.42% and net profit dropped 10.9% year-on-year, despite a 5.96% increase in total assets. Q3 net profit plummeted 33% year-on-year and 40.6% quarter-on-quarter, while revenue fell 18.44% year-on-year and 29.6% quarter-on-quarter.
Among the 10 A-listed rural commercial banks, Zijin Bank was the only one to report declines in both revenue and net profit.
**Key Drivers of the Decline** In the first three quarters of 2025, Zijin Bank's net interest income fell by 17.36% year-on-year to 2.38 billion yuan. Non-interest income, including fee and commission income, rose 41.73% to 197 million yuan, mainly due to lower costs. Investment income also surged by over 290 million yuan to 698 million yuan.
However, Q3 investment income dropped sharply by 42.4% year-on-year to 38 million yuan, a 90% quarter-on-quarter decline from Q2’s 384 million yuan.
This volatility reflects Zijin Bank's shift toward financial investments—such as bonds—to offset slowing loan growth. By mid-2025, financial investments accounted for 19.07% of total assets, including 40.496 billion yuan in debt securities.
While these investments boosted H1 earnings, their sensitivity to market fluctuations led to Q3 instability, highlighting the risks of over-reliance on investment income.
**Asset Quality and Compliance Risks** Zijin Bank's non-performing loan (NPL) ratio rose to 1.35% in Q3 2025, up 0.11 percentage points from end-2024, while its NPL balance grew 10.69% to 2.598 billion yuan. The bank's provision coverage ratio also fell to 184.81%, down 16.63 percentage points, indicating weaker risk resilience.
Among peers, Zijin Bank's NPL ratio is second-highest, while its provision coverage is the lowest—below 200%—raising concerns about risk management.
Additionally, regulatory penalties have exposed compliance weaknesses. In July 2025, Zijin Bank was fined 2.4 million yuan for seven violations, including statistical and account management breaches. Earlier in January, its Yangzhou branch was fined 500,000 yuan for inflating deposits using loan funds.
**New Leadership’s Challenge** Amid these challenges, Zijin Bank appointed Que Zhenghe as its new president and chief compliance officer in August 2025. With extensive experience in rural banking, Que faces the dual task of strengthening compliance and reviving profitability.
The new management, led by Chairman Shao Hui and President Que Zhenghe, must balance regulatory compliance with growth—a critical test for Zijin Bank’s future stability.
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