Analysis of Jiangsu Bank's Transfer of Over 2.9 Billion Yuan in Non-Performing Consumer Loans

Recently, the market has focused on the non-performing asset transfer project listed by Jiangsu Bank on the CBARC. According to CBARC announcement information, since 2025, multiple banks have accelerated non-performing asset disposal, with Jiangsu Bank’s non-performing consumer loan transfer scale exceeding 2.9 billion yuan [1]. As the year-end approaches, the pace of banks’ non-performing asset disposal has significantly accelerated, with the number of non-performing asset packages listed for transfer in a single day often reaching double digits [2].

From a long-term trend perspective, since its listing in 2016, Jiangsu Bank’s non-performing ratio has declined for nine consecutive years. The 2025 third-quarter report shows that the non-performing loan ratio dropped to 0.84% at the end of the reporting period, a historical best since listing, down 0.05 percentage points from the beginning of the year; the provision coverage ratio is 322.62%, with sufficient risk offset capacity [3]. Among listed banks with total assets exceeding 4 trillion yuan, Jiangsu Bank’s asset quality is at the optimal level, demonstrating its refined risk management capabilities.

In the first three quarters of 2025, Jiangsu Bank achieved operating income of 67.183 billion yuan, a year-on-year increase of 7.83%; net profit attributable to shareholders of listed companies was 30.583 billion yuan, a year-on-year increase of 8.32%, with an annualized ROE of 15.87% and an annualized ROA of 0.96%. In terms of asset scale, total assets exceeded 4.93 trillion yuan at the end of the reporting period, and the balance of various loans was 2.47 trillion yuan, an increase of 17.87% from the beginning of the year [4].

Reporters combed through CBARC announcements and found that recently, various financial institutions such as branches of large state-owned banks, joint-stock banks, city commercial banks, and rural banks have intensively released non-performing loan transfer announcements, involving assets mainly including personal consumer loans, operating loans, and credit card overdrafts [5]. The “2025 China Financial Non-Performing Asset Market Survey Report” released by China Orient Asset Management Co., Ltd. shows that 50.49% of respondents believe that the difficulty of commercial bank non-performing asset disposal in 2025 has increased compared with 2024 [6].

Banking industry insiders pointed out that the demand for non-performing asset write-off in the fourth quarter is urgent; transferring non-performing assets can directly reduce banks’ non-performing loan ratios and provision accruals, improve asset quality, and at the same time reduce capital occupation, freeing up space for new loans next year [7]. Dong Ximiao, chief researcher at Zhaolian, said that financial institutions carrying out bulk transfers of non-performing loans help reduce ineffective capital occupation, lighten historical development burdens, and better resolve financial risks [8].

Industry experts analyze that the currently concentrated transferred non-performing assets are mostly historical bad debts, and the write-off has phased characteristics. As regulators continue to urge banks to solidify asset classification and accelerate risk exposure, more stock risks will surface [9]. Some city commercial banks and rural commercial banks that expanded their retail business rapidly in the early stage and have relatively weak risk control capabilities will face greater write-off pressure.

Although Jiangsu Bank transferred more than 2.9 billion yuan in non-performing consumer loans, from the overall data, the bank’s non-performing ratio continued to decline and hit a historical best, indicating that its asset quality management is still effective. The transfer of retail non-performing loans is a regular risk management method in the banking industry and should not be overinterpreted as a signal of asset quality deterioration.

Industry insiders predict that this “write-off wave” of non-performing loans may continue until the first half of 2026, and the disposal scale may further expand in the future [10]. As risk exposure and capital pressure spread along the banking system, regional small and medium-sized banks will become the main force in the subsequent transfer market.

Zeng Gang, chief expert at the Shanghai Finance and Development Laboratory, pointed out that asset transfer has become the main mode of retail non-performing asset disposal in the past few years. Unlike corporate business, the debtors of retail non-performing assets are mainly natural persons, with small loan amounts and high dispersion; traditional collection and recovery methods are inefficient, so asset transfer has become a more efficient disposal method [11].

From a technical analysis perspective, Jiangsu Bank (600919.SS) is currently in a sideways consolidation pattern, with the latest closing price at $10.24, support level at $10.15, and resistance level at $10.48 [12]. Considering the bank’s continuously optimized asset quality and stable profitability, it is recommended that investors pay attention to its long-term allocation value.

[1] Sina Finance - Billion-yuan asset packages frequently appear as banks centrally dispose of non-performing assets at year-end (https://finance.sina.com.cn/jjxw/2025-12-26/doc-inheeape0691597.shtml)

[2] East Money - Billion-yuan asset packages frequently appear as banks centrally dispose of non-performing assets at year-end (https://wap.eastmoney.com/a/202512263603296264.html)

[3] Sohu - 9 consecutive declines in non-performing ratio + leading ESG rating: Why did Jiangsu Bank become a benchmark for city commercial banks? (https://m.sohu.com/a/969621227_103207)

[4] Sina Finance - Jiangsu Bank: Both scale and performance show steady growth, social responsibility deeply integrated into operation and development (https://finance.sina.com.cn/roll/2025-12-26/doc-inheaqmr8246035.shtml)

[5] Economic Information Daily - Billion-yuan asset packages frequently appear as banks centrally dispose of non-performing assets at year-end

[6] China Orient Asset Management - 2025 China Financial Non-Performing Asset Market Survey Report

[7] Financial Industry Expert Interview - Banking Industry Insider Analysis

[8] Views of Dong Ximiao, Chief Researcher at Zhaolian

[9] Industry Expert Analysis

[10] Banking Industry Insider Prediction

[11] Views of Zeng Gang, Chief Expert at Shanghai Finance and Development Laboratory

[12] Jinling AI Technical Analysis Data [0]