In the first half of this year, Jiangsu Jiangyin Rural Commercial Bank Co.,Ltd.'s net interest income and net fee and commission income both declined year-over-year.
On the first trading day after Jiangsu Jiangyin Rural Commercial Bank Co.,Ltd. (Jiangyin Bank, 002807.SZ) released its interim report, the stock price hit the daily limit during trading and ultimately closed up 7.56%. Although the bank's performance showed growth, this was primarily due to increased investment-related gains, while its two major revenue sources - net interest income and net fee and commission income - declined year-over-year.
According to Jiangyin Bank's interim report, the bank's operating revenue reached 2.401 billion yuan in the first half of this year, up 10.45% year-over-year, while net profit attributable to shareholders reached 846 million yuan, up 16.63% year-over-year.
The performance growth was mainly driven by the combined amount of investment gains and fair value changes totaling 902 million yuan, up 46.91% year-over-year. Investment gains alone reached 882 million yuan, up 81.44% year-over-year.
However, investment-related gains showed significant volatility. From 2022 to 2024, the bank's combined investment gains and fair value changes grew by 10.2%, 88.36%, and 33.15% respectively year-over-year.
Jiangyin Bank's other two major operating revenues both declined in the first half of this year.
Facing a changing economic environment, industry competition, and narrowing interest spreads, Jiangyin Bank stated it actively promoted retail transformation, accelerated inclusive finance expansion, continuously optimized asset structure, and strengthened support for the real economy. The proportion of total loans to total assets increased by 1.32 percentage points from the beginning of the year. However, in the first half of this year, the bank's net interest income was 1.409 billion yuan, down 0.23% year-over-year, with interest income declining 3.72% year-over-year.
Within interest income, interest income from loans and advances declined 2.38% year-over-year, while interest income from financial investments fell 11.38% year-over-year. Among loan interest income, personal loan and advance interest income dropped 18.37% year-over-year.
Correspondingly, the bank's net interest margin at the end of the first half was 1.54%, down from 1.76% in 2024.
The bank's loan growth rate was also slightly lower than its deposit growth rate. At the end of the first half, total loans increased 5.87% from year-end, while total deposits grew 6.82%.
Among deposits, time deposits grew faster. At the end of the first half, time deposits increased 11.72% from year-end, accounting for 65.99% of deposits, up 2.9 percentage points from year-end. Demand deposits increased 4.85%, accounting for 29.29% of deposits, down 0.55 percentage points from year-end.
Regarding net fee and commission income, Jiangyin Bank's net fee and commission income in the first half was 50.085 million yuan, down 35.18% year-over-year, accounting for 2.09% of operating revenue, down 1.46 percentage points year-over-year. Agency business fee income declined 31.15% year-over-year, while settlement business fee income fell 17.72% year-over-year.
With net interest income constrained by interest margins, Jiangyin Bank needs to increase the proportion of net fee and commission income in its operating revenue.
From a segmental performance perspective, in the first half of this year, Jiangyin Bank's corporate business operating revenue declined 0.85% year-over-year, with operating profit down 1.81%. Personal business operating revenue increased 6.14% year-over-year, with operating profit surging 167.06%. Treasury business operating revenue grew 60.48% year-over-year, with operating profit up 56.85%. The substantial growth in personal business operating profit was mainly due to a 14.46% year-over-year decrease in operating expenses.
The sustainability of the rapid decline in personal business operating expenses and the high growth in treasury business presents challenges for Jiangyin Bank.
Notably, at the end of the first half of this year, Jiangyin Bank's parent company had 1,165 pending lawsuits as plaintiff, up 62.71% from year-end, with pending litigation amounts totaling 1.257 billion yuan, up 60.13% from year-end.
Data source: Jiangyin Bank financial reports
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