Analysis of Real Estate Risk and Provision Coverage Ratio of Bank of Jiangsu

Based on the information currently available, I have not found an official data source clearly showing that Bank of Jiangsu’s non-performing loan ratio in the real estate sector has risen to 3.95%. However, I can conduct a professional analysis of the real estate loan risks and provision coverage ratio issues in the banking industry.

Currently, China’s banking industry generally faces risk pressure brought by the adjustment of the real estate industry. The rise in non-performing loan ratio of real estate loans is a common problem in the industry, mainly affected by the following factors:

1. Continuous adjustment of the real estate market
   : Since 2021, the real estate market has entered a period of deep adjustment; falling housing prices and shrinking sales have led to tight cash flow for developers
2. Exposure of credit risks of real estate enterprises
   : Some real estate enterprises have defaulted on their debts, directly affecting banks’ asset quality
3. Industrial chain transmission effect
   : It spreads to related upstream and downstream industries, increasing systemic risks

is a key indicator to measure banks’ risk offset capabilities, and its continuous decline needs attention:

Risk Level	Provision Coverage Ratio Performance	Potential Impact
Normal	>150% and stable	Sufficient risk offset capability
Attention	150%-200% range	Need to strengthen monitoring
Warning	<150% or continuous decline	Weakened risk offset capability

1. Narrowing room for profit adjustment
   : A decline in provision coverage ratio means that banks have less room to adjust profits through provision release
2. Increasing pressure on asset quality
   : The growth rate of non-performing loans may exceed the provision accrual rate
3. Pressure on capital adequacy ratio
   : Affects banks’ capital replenishment capability

1. Continuous tracking
   : Pay attention to the proportion of real estate loans, changes in non-performing loan ratio, and trends in provision coverage ratio in Bank of Jiangsu’s subsequent financial reports
2. Horizontal comparison
   : Conduct comparative analysis with peer city commercial banks such as Bank of Shanghai and Bank of Nanjing
3. Policy factors
   : Pay attention to changes in regulatory policies and the impact of real estate rescue measures on banks’ asset quality
4. Risk management
   : Evaluate banks’ exposure management to real estate risks and risk resolution measures

: Although real estate industry risks remain an important challenge for the banking industry, Bank of Jiangsu, as an important city commercial bank in Jiangsu Province, has certain regional advantages. It is recommended that investors closely follow the specific financial data it discloses subsequently and carefully assess risks.

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Note: To obtain accurate data on Bank of Jiangsu’s non-performing loan ratio and provision coverage ratio in the real estate sector, it is recommended to refer to its official annual reports or disclosure information in Shenzhen Stock Exchange announcements.