Caixin Media News on September 5 (Reporter Gao Ping): In recent years, the banking industry has generally faced pressure from narrowing interest rate spreads. Banks have made efforts from various aspects to stabilize interest rate spreads at a more reasonable level. The semi-annual report shows that Jiangsu Zijin Rural Commercial Bank's net interest margin is 1.52%, a decrease of 7 basis points from the end of the first half of the year, but a narrowing of 1 basis point from the first quarter.

Today, at the 2024 mid-year earnings conference held by Jiangsu Zijin Rural Commercial Bank, Deputy President Wang Qingguo mentioned the issue of reducing the cost of liabilities. By the end of the second quarter, the scale of high-cost deposits such as large-denomination time deposits had decreased compared to the beginning of the year. The trend of regularization has eased, the proportion of deposits with two years or less has increased compared to the first quarter, and the trend of long-term deposits has improved.

"Since the beginning of this year, Jiangsu Zijin Rural Commercial Bank has continuously strengthened the structural adjustment of liabilities and cost control, and the adjustment rhythm of deposit-listed interest rates has basically maintained consistency with local financial institutions. The gradual impact of cost control on the downward movement of the asset side will gradually show." Wang Qingguo added.

In fact, from the semi-annual report, net interest margins of many banks have rebounded compared to the first quarter. According to Wind statistics, among the 42 A-share banks, 20 banks have higher net interest margins compared to the first quarter.

Regarding the future trends in interest rate spreads in the industry, Wang Qingguo stated that considering the current credit demand of the real economy, the current situation of corporate and household deposits, and the latest released social financing data, the changes in the industry's deposit and loan interest rates are still influenced by the current economic environment. Without considering the possibility of another LPR reduction, it is expected that the speed of interest rate spread decline will slightly ease in the short term, and is expected to stabilize in the fourth quarter. Jiangsu Zijin Rural Commercial Bank's interest rate trend basically aligns with the overall industry trend.

Mid-term dividends are a topic of concern for investors. According to Caixin Media, as of now, at least 11 A-share listed banks have already announced specific plans for mid-term profit distribution. It is understood that Jiangsu Zijin Rural Commercial Bank disclosed the announcement regarding the arrangement of mid-term dividends in 2024 on April 26, 2024; and on May 20, they held the 2023 annual shareholders meeting, authorizing the Board of Directors to formulate specific mid-term dividend plans in compliance with regulatory requirements and profit distribution conditions.

When will the dividend plan of Jiangsu Zijin Rural Commercial Bank be announced? When is it planned to distribute dividends? In response to this, at the earnings conference, the board secretary of Jiangsu Zijin Rural Commercial Bank, Wu Fei, stated that the bank will subsequently, in accordance with relevant laws, regulations, and the Articles of Association, comply with regulatory requirements, combine with the mid-term operational situation, do a good job in mid-term dividend-related work, plan the total amount of mid-term and annual dividends, and maintain a reasonable time interval for dividends.

According to the semi-annual report, as of the end of the reporting period, Jiangsu Zijin Rural Commercial Bank's core tier 1 capital adequacy ratio, tier 1 capital adequacy ratio, and capital adequacy ratio were 10.37%, 10.37%, and 14.09% respectively, all higher than the end of the previous year. What are the bank's plans and measures for capital supplementation?

Wu Fei revealed that in terms of internal management, the bank will focus on the following: firstly, ensuring proper pricing management to stabilize interest spread; secondly, strengthening credit risk control and intensifying efforts to collect overdue and bad loans; thirdly, optimizing the asset structure by providing loans to small and micro enterprises and reducing low-efficiency off-balance-sheet assets. As for external supplementation, the bank will enhance its fundamental value, promote strategic transformation, and implement capital supplementation plans in a prudent manner, considering external market conditions, regulatory indicators, the bank's development, and its capital situation.