Breaking Down Jiangsu Changshu Rural Commercial Bank Co., Ltd. Financial Health: Key Insights for Investors

Curious about Jiangsu Changshu Rural Commercial Bank (601128.SS)? In the first half of 2025 the bank posted a net income attributable to shareholders of CNY 1,969 million (H1) after reporting CNY 1,083.79 million in net profit in Q1, while total operating income rose to CNY 60.62 billion (up 10.1% YoY) with net interest income of CNY 4.639 billion and a sharp 57.26% surge in net non‑interest income to CNY 1.422 billion; profitability shows a ROE of 14.07%, ROA of 1.12% and NIM of 2.5% (profit margin 43.19%, cost‑to‑income 34.38%), but capital metrics reveal a capital adequacy ratio of 12.91% (CET1 10.89%, Tier‑1 11.02%) alongside a leverage ratio of 6.5%, total assets of CNY 401.227 billion, liabilities of CNY 370.5 billion vs. equity of CNY 30.5 billion (debt‑to‑equity 12.1), loan‑to‑deposit 81%, and liquidity cushions with NPLs at 0.76%, provision coverage 489.53%, LCR 120% and NSFR 105%; valuation sits at a market cap of CNY 25.21 billion with trailing P/E 7.92, forward P/E 6.44 and P/B 0.85, even as the bank faces a past NAFMII investigation (Aug 2024) and relatively thin capital/headroom-read on for a deep dive into these figures, risks and growth levers such as a 9.45% rise in total assets, deposits at CNY 310.777 billion, loans at CNY 251.471 billion and a 155.69% jump in escrow financial management to CNY 7.277 billion.

Jiangsu Changshu Rural Commercial Bank Co., Ltd. (601128.SS) - Revenue Analysis

• Q1 2025 net profit: CNY 1,083.79 million, up 13.81% YoY.
• H1 2025 net income attributable to shareholders: CNY 1,969 million, up 13.51% YoY.
• H1 2025 total operating income: CNY 60.62 billion, up 10.1% YoY.
• H1 2025 net interest income: CNY 4.639 billion, up 0.83% YoY.
• H1 2025 net non-interest income: CNY 1.422 billion, up 57.26% YoY.
• Self-operated financial management scale (end H1 2025): CNY 30.512 billion, up 3.74% YoY.

• Stability: Net interest income grew by only 0.83% YoY, indicating margin pressure or slower loan-yield expansion.
• Diversification: Net non-interest income growth of 57.26% indicates successful fee-based or investment income strategies.
• Scale: Operating income up 10.1% YoY reflects combined effects of interest and non-interest lines plus asset management scale growth to CNY 30.512 billion.

Jiangsu Changshu Rural Commercial Bank Co., Ltd. (601128.SS) - Profitability Metrics

• Core earnings strength: A profit margin of 43.19% and operating margin of 56.32% indicate strong conversion of revenue to operating profit.
• Asset efficiency: ROA of 1.12% is above many peers in the regional commercial bank space, reflecting productive use of assets.
• Shareholder returns: ROE at 14.07% signals attractive equity returns relative to Chinese retail/regional banks.
• Interest spread: NIM at 2.5% in H1 2025 supports net interest income amid competitive deposit pricing.
• Improving cost discipline: Cost-to-income at 34.38% (Q2 2025) shows operational leverage and better expense control year‑on‑year.

• Loan mix and yield trends - changes in retail vs. corporate lending will affect NIM and ROA.
• Credit costs - provisioning and non-performing asset trends will directly influence profit margin and ROE.
• Funding costs - deposit competition or wholesale funding shifts could compress NIM.
• Operational efficiency initiatives - further reductions in cost-to-income could sustainably lift operating margin.

Jiangsu Changshu Rural Commercial Bank Co., Ltd. (601128.SS) - Debt vs. Equity Structure

• Capital adequacy ratio (CAR, consolidated): 12.91% as of March 31, 2025 (down 0.17 percentage points year‑on‑year).
• Tier 1 capital adequacy ratio: 11.02% as of March 31, 2025.
• Common Equity Tier 1 (CET1) ratio: 10.89% as of March 31, 2025.
• Leverage ratio: 6.5% as of March 31, 2025.
• Total liabilities: CNY 370.5 billion as of June 30, 2025.
• Total equity: CNY 30.5 billion as of June 30, 2025.
• Debt‑to‑equity ratio: 12.1 as of June 30, 2025.
• Loan‑to‑deposit ratio: 81% as of June 30, 2025.

• Balance composition: equity represents roughly 7.6% of total funding (CNY 30.5bn equity vs. CNY 401.0bn total assets implied by liabilities + equity), indicating reliance on deposit and other liability funding.
• Regulatory cushion: CAR of 12.91% provides a margin above many minimums, but the modest decline year‑on‑year and a CET1 near 11% suggest limited buffer against asset deterioration or unexpected losses.
• Leverage considerations: a 6.5% leverage ratio is below many global peer averages, implying higher sensitivity to asset write‑downs and earnings volatility.
• Asset‑funding mix: 81% loan‑to‑deposit ratio denotes active loan deployment relative to deposits while leaving some liquidity headroom.

Jiangsu Changshu Rural Commercial Bank Co., Ltd. (601128.SS) - Liquidity and Solvency

• Non-performing loan (NPL) ratio: 0.76% (end of H1 2025), stable quarter-on-quarter.
• Provision coverage ratio: 489.53% (as of June 30, 2025), indicating high cushion against impaired exposures.
• Liquidity Coverage Ratio (LCR): 120% (as of June 30, 2025), above the typical 100% regulatory benchmark.
• Net Stable Funding Ratio (NSFR): 105% (as of June 30, 2025), signaling adequate long-term funding stability.
• Capital Adequacy Ratio (CAR): 12.91% (as of March 31, 2025).
• Tier 1 Capital Ratio: 11.02% (as of March 31, 2025).

Jiangsu Changshu Rural Commercial Bank Co., Ltd. (601128.SS) - Valuation Analysis

Key market valuation metrics for Jiangsu Changshu Rural Commercial Bank as of early July 2025 provide a snapshot of investor pricing relative to earnings, book value, sales and enterprise value.

• Market capitalization: CNY 25.21 billion (as of July 1, 2025).
• Trailing P/E: 7.92 (as of July 4, 2025).
• Forward P/E: 6.44 (as of July 4, 2025).
• Price-to-book (P/B): 0.85 (as of July 4, 2025).
• Price-to-sales (P/S): 2.76 (as of July 4, 2025).
• Enterprise value-to-revenue (EV/Rev): 1.68 (as of July 4, 2025).

Contextual notes for investors:

• The trailing P/E of 7.92 indicates the market is pricing last 12 months' EPS at a modest multiple; the forward P/E of 6.44 implies expected EPS improvements or continued conservative valuation.
• A P/B of 0.85 suggests the stock trades below reported book equity, which may reflect asset-quality concerns, capital adequacy perceptions, or conservative investor sentiment.
• P/S at 2.76 and EV/Revenue at 1.68 provide revenue-based cross-checks against earnings and book metrics - useful when earnings are volatile.
• Relative comparison to regional peers and Chinese rural commercial banks is necessary to discern whether the discount is idiosyncratic or sector-wide.

For additional corporate vision and strategic context that can affect valuation, see: Mission Statement, Vision, & Core Values (2026) of Jiangsu Changshu Rural Commercial Bank Co., Ltd.

Jiangsu Changshu Rural Commercial Bank Co., Ltd. (601128.SS) - Risk Factors

Key regulatory, capital and asset-quality issues materially affecting investor risk profile.

• Regulatory scrutiny: In August 2024 the National Association of Financial Market Institutional Investors (NAFMII) investigated the bank for suspected manipulation in the treasury bond market, increasing compliance and reputational risk.
• Capital adequacy pressures: Capital metrics are close to regulatory minima, reducing cushion for shocks and potential growth constraints.
• Asset quality concerns: Rising non-performing loans and concentrated exposures could compress profitability and require higher provisions.
• Leverage and funding risk: High debt reliance and lower leverage ratio increase sensitivity to funding stress and interest-rate shocks.
• Peer-relative weakness: Tier 1 and overall capital ratios are low versus many peers, limiting strategic flexibility and market confidence.

For broader context on strategy, ownership and historical performance, see: Jiangsu Changshu Rural Commercial Bank Co., Ltd.: History, Ownership, Mission, How It Works & Makes Money

Jiangsu Changshu Rural Commercial Bank Co., Ltd. (601128.SS) - Growth Opportunities

• Total assets: CNY 401.227 billion at H1 2025-end, up 9.45% from the beginning of the year - a sign of scale expansion and liquidity deployment capacity.
• Total deposits: CNY 310.777 billion, up 8.46% YTD - supporting funding stability and lending headroom.
• Total loans: CNY 251.471 billion, up 4.40% YTD - indicating cautious credit growth with room to expand as demand recovers.

• Deposit franchise: robust YTD deposit growth (8.46%) improves loanable funds and lowers marginal funding cost.
• Asset-liability optimization: modest loan growth (4.40%) versus faster asset expansion suggests room to redeploy liquidity into higher-yield lending and fee-generating products.
• Wealth and escrow businesses: self-operated financial management (CNY 30.512bn) and a rapidly expanding escrow book (CNY 7.277bn, +155.69% YoY) diversify revenue and amplify fee income potential.
• Market cap and investor sentiment: market capitalization of CNY 25.21bn (Jul 1, 2025) implies upside if ROA/ROE improvements and NIM expansion materialize.

• Scale targeted SME and retail lending to convert deposit growth into higher-yielding assets while maintaining credit discipline.
• Cross-sell wealth-management products to existing depositors to boost non-interest income from the CNY 30.512bn self-operated pool.
• Leverage escrow growth by integrating payment, custody and advisory services to increase stickiness and fee margins.
• Improve asset mix to lift NIM: tilt toward performing commercial and consumer loans with reasonable risk-adjusted yields.