ZJB(SH:601860) Zheng Quan Zhi Xing·2025-06-23 09:21Core Viewpoint - Jiangsu Zijin Rural Commercial Bank maintains a stable credit rating of AA+ for both its entity and its convertible bonds, indicating strong financial health and operational stability [1][4]. Company Overview - Jiangsu Zijin Rural Commercial Bank was established in March 2011 and has a registered capital of 3.661 billion yuan as of the end of 2024 [10][20]. - The bank operates primarily in Nanjing, with a total of 135 branches, including 1 head office, 3 branches, and 122 secondary branches [10][22]. Financial Performance - As of the end of 2024, the bank's total assets reached 269.944 billion yuan, with a net profit of 1.624 billion yuan, reflecting a stable financial performance despite a slight decline in net interest margin [10][9]. - The non-performing loan ratio was reported at 1.24%, indicating a relatively healthy asset quality compared to industry standards [10][14]. Market Position - The bank holds a market share of 3.51% in deposits and 2.72% in loans within Nanjing, ranking in the upper-middle tier among local competitors [22][24]. - The bank's core liabilities are stable, with a high proportion of savings and time deposits, contributing to its financial stability [6][14]. Business Strategy - The bank focuses on serving agriculture, small and medium enterprises, and urban-rural integration, with a strategic emphasis on the "Ning-Zhen-Yang" integration plan [22][25]. - It has introduced various financial products tailored for small and micro enterprises, enhancing customer engagement and service delivery [26]. Risk Factors - The bank faces challenges from a competitive local banking environment and macroeconomic pressures, which have led to a decrease in corporate deposits by 9.24% year-on-year [25][9]. - The bank's asset quality is under scrutiny, particularly in the real estate and construction sectors, where non-performing loans are higher than the overall average [7][14]. Future Outlook - The bank's position in the Yangtze River Delta and its role as a pilot for financial reform provide a favorable growth outlook, although increased competition and economic conditions warrant close monitoring [5][12]. - Potential factors for rating upgrades include significant improvements in profitability and capital strength, while downgrades could arise from deteriorating financial conditions or market position [5][4].