Analysis of the Decline in Jiangsu Bank's Provision Coverage Ratio: Asset Quality Has Not Deteriorated

According to the latest financial data disclosed by Jiangsu Bank, the provision coverage ratio has indeed shown a downward trend, but a comprehensive analysis indicates that its asset quality has not deteriorated substantially.

Jiangsu Bank’s provision coverage ratio decreased from 389.53% at the end of 2023 to 350.10% at the end of 2024, a drop of

[1]. By the end of Q3 2025, it further fell to , a decrease of approximately 27.48 percentage points from the beginning of the year [2]. Calculated from the high of about 390% in 2022, the cumulative decline exceeded .

Although the provision coverage ratio decreased significantly, Jiangsu Bank’s asset quality indicators continued to optimize:

• Non-performing Loan Ratio
  : It was 0.89% at the end of 2024 and dropped to
  0.84%
  by the end of Q3 2025, a historic best level since its listing [2]
• 9 Consecutive Years of Decline
  : Since its listing in 2016, the non-performing loan ratio has shown a continuous downward trend, ranking among the best among listed banks with total assets exceeding 4 trillion yuan [3]
• Better Than Industry Average
  : By the end of Q3 2025, the overall non-performing loan ratio of commercial banks was 1.56%, while Jiangsu Bank’s was only 0.84%, significantly better than the industry average [2]

The decline in the provision coverage ratio does not mean a deterioration in asset quality; the main reasons include:

1. Risk Coverage Capacity Remains Sufficient
   : The provision coverage ratio of 322.62% far exceeds the regulatory requirement (150%) and the industry average (209.32%), so the risk coverage capacity remains sufficient [2]

2. Business Expansion and Provision Release
   : Jiangsu Bank’s loan scale continued to expand, with the balance of various loans reaching 2.47 trillion yuan by the end of Q3 2025, an increase of 17.87% from the beginning of the year. With the continuous improvement of the non-performing ratio, appropriate release of provisions is a reasonable financial arrangement [2]

3. Profit Growth Adjustment
   : Jiangsu Bank achieved a net profit attributable to shareholders of listed companies of 31.843 billion yuan in 2024, a year-on-year increase of 10.76%. Moderate release of provisions helps smooth profit growth [1]

• Profitability
  : The annualized ROE reached 15.87% and the annualized ROA was 0.96%, with core profit indicators continuing to maintain an excellent level in the industry [3]
• Scale Growth
  : Total assets exceeded 4.93 trillion yuan, an increase of 16.12% from the beginning of the year [1]
• Revenue Growth
  : It achieved operating income of 67.183 billion yuan in the first three quarters of 2025, a year-on-year increase of 7.83% [3]

The decline in Jiangsu Bank’s provision coverage ratio is mainly based on the following reasonable considerations:

1. Proactive Financial Adjustment
   : Against the backdrop of continuous improvement in asset quality, moderately release provisions to support business development and profit growth
2. Absolute Level Remains High
   : The provision coverage ratio of 322.62% still ranks among the leading levels in the industry, and the risk coverage capacity is sufficient
3. Continuous Decline in Non-performing Ratio
   : The non-performing loan ratio of 0.84% hit a historic low and has declined for 9 consecutive years, proving that asset quality continues to improve

: Jiangsu Bank’s asset quality has not deteriorated; the decline in the provision coverage ratio is an active financial optimization behavior of the bank against the backdrop of improved asset quality. Its core operating indicators remain stable, and its asset quality is among the best among listed banks.

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[1] Jiangsu Bank Co., Ltd. 2024 Annual Performance Express Announcement (https://stockn.xueqiu.com/SH600919/20250123659286.pdf)
[2] 9 Consecutive Years of Decline in Non-performing Ratio: The “Steady Progress and Change” Code of Jiangsu Bank (https://www.wenshannet.com/company/171113.html)
[3] 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)