Bank of Jiangsu Co Ltd

The A+H bank sector strengthened against the market during the broader pullback, with the CSI Bank Index rising 1.43% and the Hong Kong Stock Connect Mainland Financial Index up 0.15%. Ping An Bank, Bank of Nanjing, Bank of Ningbo, and Bank of Jiangsu have already disclosed interim reports, with year-on-year growth in both operating revenue and net profit attributable to the parent turning positive. Among them, Bank of Ningbo's net profit attributable to the parent grew 12.12% year-on-year. Shanghai Pudong Development Bank, Bank of Chongqing, and Chongqing Rural Commercial Bank disclosed preliminary results, with Bank of Chongqing's operating revenue and net profit attributable to the parent both growing more than 10% year-on-year. The industry-wide net interest margin saw its first quarter-on-quarter rebound in nearly four years. Analysts believe the stabilization of net interest margins mainly benefited from improved liability costs brought by the repricing of time deposits, but loan yields still face downward pressure, and margins are expected to remain broadly stable in the second half of the year.

Bank of Jiangsu released its first-half 2026 report, with net profit attributable to the parent company of 21.876 billion yuan, an increase of 1.637 billion yuan from the same period last year, up 8.09% year on year, marking five consecutive years of growth. Total operating revenue was 48.952 billion yuan, an increase of 4.087 billion yuan from the same period last year, up 9.11% year on year, also marking five consecutive years of growth. Net cash inflow from operating activities was 189.272 billion yuan. The latest asset-liability ratio was 93.52%, down 0.10 percentage points from the previous quarter. The company's latest return on equity was 6.23%, up 0.08 percentage points from the same period last year. Diluted earnings per share were 1.13 yuan, up 9.71% year on year.

Data from the National Financial Regulatory Administration shows that in the second quarter of 2026, the net interest margin of commercial banks was 1.41 percent, up 0.01 percentage point from 1.40 percent in the first quarter, marking the first quarter-on-quarter increase since 2022. As of August 18, Ping An Bank, Shanghai Pudong Development Bank, Bank of Jiangsu, Bank of Chongqing, and Chongqing Rural Commercial Bank have all released their 2026 interim results or preliminary earnings reports. All five banks achieved positive growth in both revenue and net profit in the first half, and their year-on-year revenue growth rates all improved compared with the same period last year. Bank of Chongqing's revenue rose 10.80 percent year on year to 8.486 billion yuan, Bank of Jiangsu grew 9.11 percent to 48.952 billion yuan, Chongqing Rural Commercial Bank increased 7.81 percent to 15.892 billion yuan, Shanghai Pudong Development Bank rose 3.55 percent to 93.777 billion yuan, and Ping An Bank grew 1.8 percent to 70.617 billion yuan. In terms of net profit, Bank of Chongqing's net profit attributable to shareholders was 3.518 billion yuan, up 10.28 percent year on year; Bank of Jiangsu posted 21.876 billion yuan, up 8.09 percent; Chongqing Rural Commercial Bank reported 8.168 billion yuan, up 6.09 percent; Shanghai Pudong Development Bank recorded 30.951 billion yuan, up 4.08 percent; and Ping An Bank delivered 25.696 billion yuan, up 3.3 percent. A common feature of the five banks is that deposit growth was significantly higher than loan growth, consistent with central bank data: at the end of July 2026, the outstanding balance of renminbi deposits grew 8.1 percent year on year, while the outstanding balance of loans grew 5.1 percent. Bank of Jiangsu had the largest gap between deposit and loan growth, with deposits up 17.39 percent from the end of last year and loans up 12.20 percent. Bank of Chongqing's deposits grew 10.87 percent and loans grew 9.63 percent. Shanghai Pudong Development Bank's deposits rose 5.05 percent and loans rose 2.88 percent. Ping An Bank's deposits increased 2.2 percent and loans increased 1.8 percent. Ping An Bank President Ji Guangheng said effective financing demand remains insufficient, and retail personal loan growth in the first half was only a few billion yuan. On asset quality, Bank of Jiangsu's non-performing loan ratio was 0.81 percent, the best since its listing; Chongqing Rural Commercial Bank's ratio was 1.05 percent, down 0.03 percentage point from the end of last year; Ping An Bank's ratio was 1.05 percent, unchanged; and Shanghai Pudong Development Bank's ratio was 1.25 percent, down 0.01 percentage point.

Bank of Jiangsu released its first-half 2026 performance flash report. Operating revenue and net profit attributable to the parent rose 9.11% and 8.09% year-on-year respectively, while the non-performing loan ratio fell to a post-listing low of 0.81%. As of end-June, total assets exceeded 5.61 trillion yuan, up 13.79% from the start of the year, with deposit growth outpacing loan growth. The bank recently completed a senior management reshuffle, with Yuan Jun, born in the 1970s, taking over as chairman and Gao Zengyin becoming president. The new leadership team was entirely promoted from within, and institutions view the transition as smooth.

Bank of Jiangsu has released its 2025 annual equity distribution implementation announcement, declaring a cash dividend of 0.2332 yuan per share, tax inclusive. The record date is July 9, 2026, and the ex-dividend and ex-rights date is July 10, 2026. Bank of Jiangsu is a constituent of the Dividend Low Volatility Index, which selects 50 securities with good liquidity, consistent dividend payments, moderate dividend payout ratios, positive growth in dividends per share, high dividend yields, and low volatility. The ChinaAMC Dividend Low Volatility ETF, which tracks this index, has a management fee plus custody fee of just 0.2 percent, the lowest among its peers. Its dividend yield over the past year stands at 5.34 percent. The corresponding total return index, from its inception to the end of May 2026, shows a 71 percent probability of positive returns for any six-month holding period. The probabilities rise to 84 percent, 89 percent, and 95 percent for holding periods of one, two, and three years, respectively, making it suitable as a defensive asset allocation within a barbell strategy.