Jiangsu Jiangyin Rural Commercial Bank Co.,Ltd. reported on August 20 that its first-half operating revenue reached 2.449 billion yuan, up 1.98% year-on-year, while net profit attributable to shareholders rose 2.34% to 866 million yuan. Behind this modest growth, net interest income emerged as the primary driver.
During the reporting period, net interest income increased 4.74% year-on-year to 1.476 billion yuan. However, this rebound was not fueled by improved asset-side yields but rather by a significant reduction in liability-side costs. Total interest income fell 3.52% year-on-year to 2.792 billion yuan. With total loans growing 5.93% from the beginning of the year to 141.6 billion yuan, the contraction in interest income underscores downward pressure on asset yields, as the average loan yield dropped from 3.63% in the prior-year period to 3.29%.
The main support for the net interest margin came from easing funding costs. Interest expenses declined 11.36% year-on-year to 1.316 billion yuan in the first half, while the deposit cost ratio fell 29 basis points from 1.62% to 1.32%. As a result, the net interest margin stood at 1.57%, down just 3 basis points from the full-year 2025 level.
In terms of asset allocation, Jiangsu Jiangyin Rural Commercial Bank Co.,Ltd. showed a trend of expanding corporate credit while contracting retail loans. As of the end of June, corporate loans grew 8.02% from the start of the year to 122.136 billion yuan, raising their share of total loans to 86.25%. Among these, technology finance, green finance, and supply chain finance grew by 11.48%, 27.01%, and 47.32%, respectively, serving as the main engines of corporate expansion. Meanwhile, retail loans shrank from 20.607 billion yuan at the beginning of the year to 19.463 billion yuan, a decline of 5.55%, with corresponding interest income down 12.34% year-on-year.
On the deposit side, the trend toward term deposits continued. Total deposits reached 176.149 billion yuan by the end of June, up 5.34% from the start of the year, with time deposits accounting for 52.66% of the total.
Asset quality metrics remained stable on paper. The non-performing loan ratio stood at 0.81% at the end of June, down 1 basis point from the start of the year, while the provision coverage ratio improved to 349.17%. However, migration rate indicators point to some forward-looking risk shifts. In the first half of 2026, the substandard loan migration rate rose to 56.89% from 32.31% in full-year 2025, and the doubtful loan migration rate climbed to 85.38%. The bank booked 860 million yuan in credit impairment losses during the period, down slightly by 0.96% year-on-year. Despite the sizable provisioning, which equaled 87.5% of operating profit, the provision coverage ratio still increased, reflecting continued strong risk-absorption capacity.
Business expansion also drove capital consumption. Risk-weighted assets grew 7.58% from the start of the year to 153.981 billion yuan by the end of June, pulling the capital adequacy ratio down from 14.77% to 14.22%, and the core tier-1 capital adequacy ratio from 13.63% to 13.09%. Notably, the bank completed the absorption and merger of Xinghua Sunan Village Bank and Jurong Sunan Village Bank during the period, and the integration of their assets and branch networks contributed to the capital strain.
With rising capital replenishment pressure, the board of Jiangsu Jiangyin Rural Commercial Bank Co.,Ltd. proposed an interim dividend for 2026, recommending a cash payout of 1 yuan (pre-tax) per 10 shares, totaling approximately 271 million yuan. This reflects the bank's efforts to balance shareholder returns with retaining internal capital. The proposal is subject to shareholder approval.
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