Bank of Nanjing Co Ltd

The A+H bank sector strengthened against the market during the broader pullback, with the CSI Bank Index rising 1.43% and the Hong Kong Stock Connect Mainland Financial Index up 0.15%. Ping An Bank, Bank of Nanjing, Bank of Ningbo, and Bank of Jiangsu have already disclosed interim reports, with year-on-year growth in both operating revenue and net profit attributable to the parent turning positive. Among them, Bank of Ningbo's net profit attributable to the parent grew 12.12% year-on-year. Shanghai Pudong Development Bank, Bank of Chongqing, and Chongqing Rural Commercial Bank disclosed preliminary results, with Bank of Chongqing's operating revenue and net profit attributable to the parent both growing more than 10% year-on-year. The industry-wide net interest margin saw its first quarter-on-quarter rebound in nearly four years. Analysts believe the stabilization of net interest margins mainly benefited from improved liability costs brought by the repricing of time deposits, but loan yields still face downward pressure, and margins are expected to remain broadly stable in the second half of the year.

Bank of Nanjing released its first-half 2026 report, with net profit attributable to the parent company of 13.65 billion yuan, up 8.17% from the same period last year. Total operating revenue was 31.596 billion yuan, up 10.94% year on year, marking five consecutive years of growth. Net cash inflow from operating activities was 105.178 billion yuan, down 11.98% year on year. The company's latest asset-liability ratio was 93.14%, return on equity was 6.26%, and diluted earnings per share was 1.10 yuan.

Bank of Shanghai and Bank of Nanjing simultaneously disclosed share purchase plans, driving a notable recovery in the A-share banking sector in July. Some directors, executives, and mid-level managers of Bank of Shanghai plan to voluntarily increase their holdings with no less than 15 million yuan of their own funds, with the implementation period starting from July 21, 2026, for six months. Bank of Nanjing's major shareholder, Jiangsu Communications Holding Company Limited, after accumulating a 15 percent stake over nearly ten months in the previous round, has again made a new commitment to increase holdings over the next 12 months, with a cumulative minimum investment of 100 million yuan. Previously, share purchase plans of several city and rural commercial banks, including Changshu Bank and Ruifeng Bank, have been fully implemented. Among them, Ruifeng Bank's management actually bought 2.50039 million shares, exceeding the original target of 2.47 million shares. Boosted by the intensive share purchases, the Shenwan Banking Index rose 2.32 percent on July 20, with sector turnover exceeding 45.5 billion yuan. However, as of the end of June, the sector had still fallen more than 12 percent for the year, all 42 A-share listed banks were trading below book value, and the overall price-to-book ratio was about 0.6 times.

Jiangsu Communications Holding has increased its stake in Bank of Nanjing to 15%. According to a Bank of Nanjing announcement, shareholder Jiangsu Communications Holding, which holds more than 5% of the shares, purchased 122,672,959 shares through centralized competitive bidding from September 23, 2025 to July 17, 2026, representing 0.99% of total share capital. After the purchase, its shareholding rose from 14.01% to 15.00%. Jiangsu Communications Holding stated that the increase was based on recognition of Bank of Nanjing's long-term investment value, and it plans to continue buying no less than 100 million yuan worth of shares over the next 12 months, with no intention to reduce its stake. Bank of Nanjing said this equity change will not lead to a change in controlling shareholder or actual controller, and the company still has no controlling shareholder or actual controller.