Core Viewpoint - The article highlights a significant shift in the ranking of city commercial banks in A-shares, with Jiangsu Bank surpassing Beijing Bank to become the largest by total assets, marking a new phase of competition focused on quality and stability after the scale competition [3][4]. Asset Scale Ranking Update - Jiangsu Bank's total assets reached 4.79 trillion yuan, a year-on-year increase of 26.99%, surpassing Beijing Bank's 4.75 trillion yuan [6]. - Beijing Bank had maintained its leading position since its listing in 2007, but Jiangsu Bank has rapidly closed the gap over the past three years, ultimately achieving a lead in 2025 [6][12]. Profitability Comparison - Jiangsu Bank has consistently outperformed Beijing Bank in profitability metrics since 2022, with a net profit of 202.38 billion yuan in the first half of 2025 compared to Beijing Bank's 150.53 billion yuan [7][9]. - Despite the growth in revenue, Jiangsu Bank faces challenges with its capital adequacy ratios, which are at 12.36% for total capital, 11.17% for tier 1 capital, and 8.49% for core tier 1 capital, placing it in the middle to lower range among listed banks [7][8]. Industry Segmentation - The 17 city commercial banks have formed a clear three-tier structure, with Jiangsu and Beijing Banks in the first tier, followed by Ningbo and Shanghai Banks in the second tier, and a mix of performance in the third tier [12][13]. - The third tier shows significant internal differentiation, with some banks like Chongqing Bank and Xi'an Bank performing well, while others like Guiyang Bank and Xiamen Bank are experiencing negative growth in revenue [12][13]. Challenges in Non-Interest Income - Many banks reported a significant decline in fair value changes, attributed to fluctuations in the bond market, which directly impact their non-interest income [14]. - Jiangsu Bank's investment income decreased by approximately 1.25 billion yuan, and its fair value change net income dropped by 22.72% in the first half of 2025 [11][14].

Core Insights - The rapid expansion of city commercial banks has led to concerns about capital adequacy ratios and the "broad planting, thin harvesting" phenomenon [2][5] - Jiangsu Bank has overtaken Beijing Bank to become the largest city commercial bank by total assets, reaching 4.79 trillion yuan, a 26.99% year-on-year increase [4][8] - The banking industry is increasingly showing a clear differentiation, with 17 city commercial banks forming three tiers, where leading banks continue to expand steadily while some lagging banks face negative growth [2][9] Asset Scale Rankings - Jiangsu Bank's total assets reached 4.79 trillion yuan, surpassing Beijing Bank's 4.75 trillion yuan, marking a significant shift in the rankings [4][5] - Beijing Bank had maintained its leading position since its listing in 2007, but Jiangsu Bank has accelerated its growth in recent years, closing the gap significantly [4][9] - The asset scale of Jiangsu Bank has increased significantly due to high growth in non-loan assets, with derivatives and financial investments growing by 23.1% and cash and deposits with the central bank increasing by 37.8% [9][12] Profitability Comparison - Jiangsu Bank has consistently outperformed Beijing Bank in terms of revenue and net profit since 2022, with the latest figures showing Jiangsu Bank's revenue at 448.64 billion yuan and net profit at 202.38 billion yuan for the first half of the year [5][8] - The profitability of banks in the third tier shows significant variation, with some banks experiencing negative growth in revenue and net profit [11][12] Capital Adequacy Ratios - As of June, Jiangsu Bank's capital adequacy ratio was 12.36%, which is below the industry average, indicating potential risks associated with its rapid expansion [5][6] - Comparatively, Beijing Bank's capital adequacy ratio stood at 13.06%, while other banks like Ningbo Bank and Shanghai Bank reported higher ratios of 15.21% and 14.62% respectively [6][12] Market Trends - The shrinking of fair value changes in earnings has become a common issue among city commercial banks, largely due to fluctuations in the bond market [12] - The differentiation among city commercial banks is becoming more pronounced, with the top tier consisting of Jiangsu Bank and Beijing Bank, while the second tier includes banks like Nanjing Bank and Hangzhou Bank [10][11]