Core senior management has undergone a complete reshuffle within a year, while the bank simultaneously establishes a Chief Compliance Officer position. Jiangsu Zijin Rural Commercial Bank Co.,Ltd. (601860.SH) aims to regain development momentum through dual reforms in personnel and institutional systems.
Recently, Jiangsu Zijin Rural Commercial Bank disclosed board resolutions. The bank appointed Que Zhenghe as president and Chief Compliance Officer, and Xu Guoyu as vice president and board secretary. Both appointments require approval from financial regulatory authorities. Meanwhile, Shao Hui, who has led the bank for one year, continues to be elected as chairman of the fifth board of directors.
It was noted that one month before establishing the Chief Compliance Officer position, Jiangsu Zijin Rural Commercial Bank was fined 2.4 million yuan by the People's Bank of China for seven major violations, including breaches of financial statistics management regulations and account management regulations.
For the bank's new management team, beyond addressing compliance shortcomings, a more severe challenge lies in reversing weak performance trends. Data shows that in 2024, the bank's net profit growth was merely 0.3%, hitting a new low since listing. Furthermore, since Q3 2024, Jiangsu Zijin Rural Commercial Bank has experienced negative revenue growth for three consecutive quarters.
How to achieve balance between strong regulation and stable growth will become the core proposition facing the bank's new management.
**Chairman and President Successively Replaced Within One Year**
Recently, Jiangsu Zijin Rural Commercial Bank issued an announcement regarding the first meeting (extraordinary meeting) resolution of the fifth board of directors, disclosing personnel changes for multiple senior executives.
The announcement shows that Jiangsu Zijin Rural Commercial Bank appointed Que Zhenghe as president and Chief Compliance Officer. Que Zhenghe's qualification requires approval from financial regulatory authorities. Prior to approval, according to relevant regulatory provisions, Que Zhenghe was selected to temporarily fulfill presidential duties from the effective date of this board resolution until his presidential qualification receives regulatory approval.
Additionally, the bank appointed Xu Guoyu as vice president and board secretary, with Xu Guoyu's board secretary qualification also requiring regulatory approval. According to relevant regulations, the board designated Vice President Xu Guoyu to temporarily perform board secretary duties.
It was noted that Que Zhenghe represents a new face in the bank's management team. Before joining the bank, Que Zhenghe had extensive experience working in rural credit cooperatives.
His resume shows that Que Zhenghe, born in 1975, previously served as deputy section chief and general manager of the fund operations department and branch manager at Siyang Union, credit management department general manager at Siyang Rural Cooperative Bank, deputy director of Hongze County Rural Credit Cooperative Union, and various positions at Jiangsu Provincial Rural Credit Cooperative Union including principal staff member of business management department, senior manager of business development department, deputy general manager and general manager of business management department. Before being appointed as president of Jiangsu Zijin Rural Commercial Bank, Que Zhenghe served as general manager of the business management department (inclusive finance department) at Jiangsu Rural Commercial United Bank.
Xu Guoyu, who assumed the position simultaneously with Que Zhenghe as the bank's new board secretary, also previously worked at Jiangsu Provincial Rural Credit Cooperative Union. The announcement shows Xu Guoyu previously served as research analyst and senior manager of margin trading department at Huatai Securities, senior manager of business development department and senior manager of financial market department at Jiangsu Provincial Rural Credit Cooperative Union, and assistant to the president at Zijin Rural Commercial Bank.
Notably, Jiangsu Zijin Rural Commercial Bank simultaneously elected Shao Hui to continue as chairman of the fifth board of directors. Since assuming the chairmanship in August 2024, Shao Hui has led the bank for one year.
According to information, in early 2019, Jiangsu Zijin Rural Commercial Bank was listed on the Shanghai Stock Exchange main board, becoming the nation's first A-share listed rural commercial bank in a provincial capital city. In August of the following year after listing, the bank's former chairman Zhang Xiaojun retired upon reaching age limit, and Tang Yu, who had been working alongside Zhang Xiaojun as president, succeeded him.
However, after leading Jiangsu Zijin Rural Commercial Bank for only one year, Tang Yu resigned in November 2021 due to work adjustments, with Zhao Yuankuan succeeding as chairman. In August 2024, Zhao Yuankuan resigned upon reaching age limit.
**Total Assets Exceed 280.2 Billion Yuan with Weak Performance Growth**
Within just one year, both chairman and president positions underwent complete changes, while simultaneously establishing a Chief Compliance Officer position. Jiangsu Zijin Rural Commercial Bank seeks to reshape its governance structure from both personnel and institutional aspects to address dual pressures from performance and compliance.
It was noted that shortly before these personnel changes, Jiangsu Zijin Rural Commercial Bank received a million-yuan fine.
On July 18, the Jiangsu Branch of the People's Bank of China issued administrative penalty information showing that Jiangsu Zijin Rural Commercial Bank was warned, had illegal gains of 20.22 yuan confiscated, and was fined 2.4 million yuan for seven major violations including breaches of financial statistics management regulations and account management regulations. The violations involved multiple business lines including financial statistics, account management, special merchant management, payment acceptance terminal management, RMB circulation management, and credit information collection.
Furthermore, Sha, then-general manager of the bank's electronic banking department, and Yao, then-general manager of the inclusive finance department, were respectively fined 50,000 yuan and 100,000 yuan for violating special merchant management regulations and credit information collection, provision, inquiry, and related management regulations.
In early 2025, Jiangsu Zijin Rural Commercial Bank's Yangzhou branch was also fined 500,000 yuan by Yangzhou Financial Regulatory Bureau for "using the bank's loan funds to open certificates of deposit and issue pledge loans, artificially inflating deposits."
Beyond compliance issues, the bank's new management team faces considerable performance pressure. Data shows that in Shao Hui's first year at the helm, 2024 saw Jiangsu Zijin Rural Commercial Bank achieve operating revenue of 4.463 billion yuan and net profit of 1.624 billion yuan, representing year-on-year growth of only 0.98% and 0.3% respectively, with net profit growth being the lowest since listing.
In Q1 2025, Jiangsu Zijin Rural Commercial Bank achieved operating revenue of 1.141 billion yuan, down 4.82% year-on-year, marking three consecutive quarters of negative growth since Q3 2024; net profit was 422 million yuan, up 4.04% year-on-year.
In Q1, Jiangsu Zijin Rural Commercial Bank achieved net interest income of 829 million yuan, down approximately 15% year-on-year; net fee and commission income of 44.911 million yuan, up 20.2% year-on-year; investment income of 276 million yuan, up 49.96% year-on-year, becoming an important driver for overall performance growth.
As of the end of March 2025, Jiangsu Zijin Rural Commercial Bank's total assets reached 280.254 billion yuan, up 3.82% from year-end; total loans of 191.166 billion yuan, up 1.23% from year-end; total deposits of 221.096 billion yuan, up 5.3% from year-end; non-performing loan ratio of 1.24%, flat compared to year-end.
Industry insiders analyzed that Jiangsu Zijin Rural Commercial Bank faces multiple challenges including frequent senior management changes, frequent compliance penalties, and weak performance growth. The bank is attempting to break through via dual tracks of "personnel changes" and "system building," but whether the new team can effectively balance short-term performance pressure with long-term compliant operations remains a question to be tested.
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