Analysis of Non-Interest Income Decline and Intermediary Business Transformation of Bank of Jiangsu

Based on the obtained information and data from professional financial analysis tools, I will provide a detailed analysis of the non-interest income decline and intermediary business transformation of Bank of Jiangsu for you.

Bank of Jiangsu (600919.SS), as a leading city commercial bank, has recently faced the challenge of non-interest income decline. According to public information, Bank of Jiangsu’s non-interest income decreased by 16% year-on-year in 2023, a trend representative among city commercial banks [1].

In terms of market performance, Bank of Jiangsu’s stock price showed fluctuations in 2025:

• Current stock price: 10.24 CNY, market capitalization: 187.92 billion USD [0]
• Valuation level: P/E ratio 5.50x, P/B ratio 0.68x, at a low level in the industry
• Profitability: ROE 11.22%, net profit margin 21.18%, operating profit margin 25.08%

The decline in non-interest income of the banking industry has universal characteristics:

1. Regulatory Environment Changes
   : After the implementation of the new asset management regulations, the scale of wealth management business has shrunk, and channel business has declined
2. Market Interest Rate Liberalization
   : The spread between deposits and loans has narrowed, leading to a decline in the income of traditional intermediary businesses
3. Intensified Competition
   : Internet finance has impacted traditional payment and settlement businesses
4. Economic Cycle Impact
   : Corporate investment and financing demand has slowed down, and investment banking business has contracted

: Shift from product sales orientation to customer asset allocation services

:

• Establish a full-spectrum wealth management product system covering cash management, fixed income, equity, and alternative investments
• Build a professional investment advisory team to enhance customers’ asset allocation capabilities
• Develop private banking business to serve high-net-worth customer groups
• Build a digital wealth management platform to achieve precise marketing and services

: Shift from single financing services to comprehensive financial service solutions

:

• Develop innovative businesses such as M&A financing, supply chain finance, and asset securitization
• Build an “investment banking + commercial banking” collaboration mechanism to provide customers with full-cycle financial services
• Expand investment banking businesses such as bond underwriting and financial advisory
• Participate in capital operations such as industrial funds and equity investments

: Improve business efficiency and customer experience through technical means

:

• Build an open banking platform to expand service scenarios and reach channels
• Use big data and AI technologies to achieve precise marketing and intelligent risk control
• Develop mobile banking and remote banking to enhance service convenience
• Build a financial ecosystem and deeply integrate with e-commerce, travel, medical care, and other fields

: Leverage the regional advantages of city commercial banks to build differentiated competitiveness

:

• Deeply cultivate the Yangtze River Delta regional economy, focusing on manufacturing, technological innovation, green credit, and other fields
• Develop inclusive finance to serve small and medium-sized enterprises and individual industrial and commercial households
• Build a supply chain finance service platform to tap the value of the industrial chain
• Explore emerging fields such as elderly care finance and sci-tech innovation finance

1. Optimize Income Structure
   : Stabilize traditional intermediary businesses and expand increments of emerging businesses
2. Reduce Costs and Increase Efficiency
   : Improve operational efficiency through digital means and control the cost-to-income ratio
3. Customer Management
   : Deepen the value mining of existing customers and enhance customer stickiness and cross-selling

1. Business Model Upgrade
   : Shift from account-driven to scenario-driven, and build a financial ecosystem
2. Capability Building
   : Cultivate professional capabilities such as investment research, asset allocation, and risk identification
3. Technology Investment
   : Continuously increase investment in fintech and build digital infrastructure

1. Brand Remodeling
   : Create a “regional boutique bank” brand image and establish a differentiated positioning
2. License Layout
   : Apply for business qualifications such as wealth management subsidiaries and fund sales to improve the business landscape
3. Capital Operations
   : Explore M&A opportunities to achieve scale expansion and capability enhancement

1. Macroeconomic Risk
   : Economic downturn may lead to insufficient credit demand and affect income growth
2. Interest Rate Risk
   : Deepening of interest rate liberalization may further compress interest spreads and intermediary business income
3. Competition Risk
   : Competitive pressure from large banks and internet finance institutions continues to increase
4. Compliance Risk
   : Changes in regulatory policies may affect business operations and income recognition

As a leading city commercial bank, Bank of Jiangsu has significant advantages in regional economy, customer base, brand influence, and other aspects. In the future, it should seize the following opportunities:

1. Industrial Upgrade
   : Serve manufacturing upgrading and technological innovation to obtain high-quality assets and customers
2. Consumption Upgrade
   : Seize the opportunity of growing residents’ wealth management demand to expand the scale of retail business
3. Digital Transformation
   : Driven by fintech to improve service efficiency and customer experience
4. Regional Collaboration
   : Deeply integrate into the integrated development of the Yangtze River Delta to obtain regional growth dividends

: The non-interest income decline of Bank of Jiangsu is a common challenge faced by the industry. In the short term, it needs to optimize the business structure and improve operational efficiency. In the medium and long term, it should focus on four directions: wealth management, investment banking linkage, fintech, and distinctive businesses to build differentiated competitive advantages. As a leading city commercial bank, Bank of Jiangsu has the basic conditions and strategic capabilities for transformation, and the key lies in the determination and sustainability of strategic execution.

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[0] Jinling API Data - Market Data and Company Overview of Bank of Jiangsu (600919.SS)

[1] Financial Focus: 2025 Banking Industry Competitiveness Heavy Scan - Industry Report Jointly Released by 21st Century Financial Research Institute and China Banking Association