Bank Of Nanjing Co.,Ltd. (601009.SH) and Bank Of Jiangsu Co.,Ltd. (600919.SH) have both released their interim reports for the first half of 2026, revealing sustained earnings growth alongside strategic moves to enhance operational efficiency.
Both institutions reported year-on-year profit increases exceeding 8%, yet their headcounts and compensation expenses have declined compared to the end of 2025, reflecting a broader push toward cost reduction and productivity gains across the sector.
As of the end of June 2026, Bank Of Jiangsu Co.,Ltd. employed 21,062 staff members, a decrease of 827 people from the 21,889 recorded at the close of 2025, marking a reduction of roughly 3.78%. Concurrently, the bank's wage and bonus expenses for the first half totaled RMB 3.324 billion, down 10.60% year-on-year. Its cost-to-income ratio improved to 20.43%, a decline of 1.78 percentage points.
Bank Of Nanjing Co.,Ltd. also reported a smaller workforce, with 17,684 employees as of the end of June, down 254 from the 17,938 at the end of 2025. Employee compensation for the first half stood at RMB 5.039 billion, a decrease of RMB 178 million from the RMB 5.217 billion recorded at the end of 2025, reflecting a drop of approximately 3.41%. The cost-to-income ratio fell to 22.70%, down 3.37 percentage points from the end of 2025 and 2.37 percentage points year-on-year.
In terms of financial performance, Bank Of Jiangsu Co.,Ltd. generated operating revenue of RMB 48.952 billion in the first half, up 9.11% year-on-year, while net profit attributable to shareholders reached RMB 21.876 billion, an increase of 8.09%. Bank Of Nanjing Co.,Ltd. achieved operating revenue of RMB 31.596 billion, up 10.94%, and net profit attributable to parent shareholders of RMB 13.650 billion, up 8.17%.
Amid persistent pressure on net interest margins and intensifying industry competition, these banks are increasingly focusing on expense-side optimization, with workforce size and labor costs emerging as key areas of adjustment. The interim reports show that despite headcount reductions and lower labor expenses, both revenue and net profit continue to grow.
However, whether the workforce contraction will translate into sustained operational efficiency improvements, and whether it could impact certain business lines or customer service levels, remains to be seen. The benefits of reduced labor costs are most evident on the expense side. For Bank Of Jiangsu Co.,Ltd., total employee costs for the first half amounted to RMB 4.905 billion, down 4.8% year-on-year, while business and management fees grew only marginally by 0.37%. This expense discipline helped offset some of the profitability pressure from narrowing net interest margins, serving as a key buffer to profits.
Nevertheless, growth pressures on the business side persist. For instance, Bank Of Jiangsu Co.,Ltd. reported net fee and commission income of RMB 3.194 billion for the first half, up just 0.26% year-on-year. Meanwhile, Bank Of Nanjing Co.,Ltd. saw net fee and commission income decline by 18.50% to RMB 2.283 billion, with non-interest net income falling 24.73% year-on-year.
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