Wuxi Rural Commercial Bank Delivers Steady Growth

Wuxi Rural Commercial Bank Co., Ltd. (600908.SH) reported solid third-quarter performance for 2025, extending its track record of stable profitability and balance sheet expansion amid a challenging credit environment.

Operating revenue for the first nine months of 2025 reached RMB 3.77 billion, up 3.9% year-on-year, while net profit attributable to shareholders rose 3.8% to RMB 1.83 billion. For the third quarter alone, the bank earned RMB 453 million, representing a 4.6% increase from the same period last year.

The bank’s net interest income edged up to RMB 2.61 billion, supported by controlled funding costs despite continued pressure on asset yields. Fee and commission income declined modestly, with net fee income down 4.6% to RMB 116 million. Investment returns strengthened, rising 30.6% to RMB 1.07 billion, reflecting higher gains from securities and affiliates.

Profit before tax totaled RMB 2.02 billion, up 4.0% year-on-year, while earnings per share stood at RMB 0.82, a 2.5% increase. The annualized return on equity came in at 11.0%, down slightly by 0.6 percentage points due to capital expansion.

On the balance sheet, total assets climbed 8.0% to RMB 277.4 billion, driven by loan growth and investment expansion. Customer deposits grew 11.7% to RMB 237.4 billion, underpinned by rising time deposits in both corporate and retail segments. Total loans rose 7.8% to RMB 168.9 billion, with corporate loans accounting for 71% of the book.

The bank maintained excellent asset quality, with the NPL ratio steady at 0.78% and loan loss reserves covering 428% of NPLs. Stage migration was minimal: 98.6% of loans were classified as “normal,” while only 0.78% fell into substandard or loss categories.

Capital strength remained healthy, with a total capital adequacy ratio of 14.03%, Tier 1 capital ratio of 12.87%, and core Tier 1 ratio of 11.77%, all comfortably above regulatory minimums. The leverage ratio stood at 7.46%, reflecting prudent balance sheet management.

Net operating cash flow was RMB 7.01 billion, down 23.7% year-on-year, as lending activity accelerated and investment cash inflows normalized.