Risk Analysis of Non-Performing Real Estate Loans at Bank of Jiangsu

Based on the collected data and research materials, I provide you with a risk analysis of Bank of Jiangsu’s 3.95% non-performing loan ratio in the real estate sector:

According to the latest data, Bank of Jiangsu (600919.SH) has a non-performing loan (NPL) ratio of

[0] in the real estate sector, which is in a relatively high range among city commercial banks. The following risks need to be focused on:

• High NPL Ratio
  : The 3.95% NPL ratio is significantly higher than the bank’s overall NPL ratio, reflecting pressure on the asset quality of real estate loans[0]
• Risk Classification
  : Financial analysis shows that the bank’s overall debt risk is classified as “high risk”[0]
• Risk Exposure
  : The exposure to the real estate industry is large, and attention should be paid to the deterioration of asset quality

• A high NPL ratio means higher loan loss provisions are required
• May affect the bank’s profit growth potential
• Need to pay attention to the adequacy of provision coverage ratio

• Bank of Jiangsu’s main business is concentrated in the Yangtze River Delta region
• Fluctuations in the regional real estate market will directly affect loan quality
• Need to pay attention to the impact of regional real estate market adjustments on asset quality

• Rising non-performing real estate loans will directly erode the bank’s profits
• Risk classification shows that the bank adopts aggressive accounting policies, and there is limited room for profit growth[0]
• May affect shareholder return on investment

• A high NPL ratio may lead to accelerated capital consumption
• Need to pay attention to the changing trend of capital adequacy ratio
• Constrains the ability to expand business in the future

• Strictly enforce real estate loan access standards
• Strengthen post-loan management and identify risk signals in a timely manner
• Increase risk investigation of existing real estate loans

• Moderately reduce the proportion of real estate loans
• Increase credit support for real economy, small and micro enterprises, etc.
• Diversify industry concentration risks

• Comprehensively use methods such as write-off, transfer, and debt-to-equity swap to dispose of non-performing assets
• Increase the disposal of assets received in settlement of debts
• Improve the stability of asset quality

• Reasonably accrue loan loss provisions
• Maintain the adequacy of provision coverage ratio
• Balance risk management and control with profit growth

It is worth noting that Bank of Jiangsu “led the way” in institutional research, ranking first among listed banks with 83 institutional research visits[1], indicating that the market has a high degree of concern about its asset quality, especially its real estate risk exposure. Institutions focused on issues such as net interest margin trends, bond market investment strategies, and asset quality management and control during the research[1].

The 3.95% non-performing loan ratio of Bank of Jiangsu’s real estate sector does require key attention. The main risks are concentrated in areas such as declining asset quality, provision coverage pressure, regional economic risks, and profitability impacts. The bank needs to take active risk response measures, strengthen real estate loan management, optimize asset structure, and increase the disposal of non-performing assets to maintain stable asset quality. At the same time, regulatory authorities should also continue to pay attention to the real estate risk exposure of city commercial banks to prevent systemic financial risks.

[0] Jinling API Data
[1] Sina Finance - “What to Focus On? Institutions Cluster to Research Listed Banks: Bank of Jiangsu ‘Leads’” (https://finance.sina.com.cn/roll/2025-12-02/doc-infzmiff0318955.shtml)