Bank of Jiangsu (600919) H2 2023 earnings summary

Executive summary

• Total assets reached RMB 3.4 trillion, up 14.2% year-over-year, with deposits at RMB 1.88 trillion and loans at RMB 1.8 trillion, both showing double-digit growth.

• Net profit attributable to shareholders rose 13.25% year-over-year to RMB 28.75 billion; operating income increased 5.28% to RMB 74.29 billion.

• Bank ranked 68th among the top 1,000 global banks and 1st among domestic urban commercial banks; included in the Fortune China 500 and top 500 global bank brands.

• Major strategic focus on S&T finance, green finance, inclusive finance, pension finance, and digital finance, with significant loan growth in these sectors.

• Proposed cash dividend of RMB 4.7 per 10 shares, totaling RMB 8.63 billion, representing 30% of net profit attributable to the parent company.

Financial highlights

• Net profit attributable to shareholders: RMB 28.75 billion, up 13.25% year-over-year.

• Operating income: RMB 74.29 billion, up 5.28% year-over-year.

• Net interest income: RMB 52.64 billion, up 0.73% year-over-year; net interest margin at 1.98%.

• Total assets: RMB 3.4 trillion, up 14.2% year-over-year; total liabilities: RMB 3.14 trillion, up 13.72%.

• Basic earnings per share: RMB 1.69; diluted EPS: RMB 1.52.

• Non-performing loan ratio: 0.91%, down 0.03 percentage points year-over-year; provision coverage: 378.13%.

• Capital adequacy ratio: 13.31%; core tier 1 capital adequacy: 9.46%.

Outlook and guidance

• Bank expects continued pressure on net interest margin due to lower LPR and market rates, but will focus on optimizing asset structure and reducing liability costs.

• Plans to maintain a 30% dividend payout ratio and further enhance capital strength and shareholder returns.

• Strategic focus remains on digital transformation, green finance, and supporting the real economy.