China's City Commercial Banks Reshuffle as Bank of Jiangsu Overtakes Bank of Beijing

From 2016 to 2026, the leadership ranking of China's city commercial banks shifted. In 2016, Bank of Beijing and Bank of Shanghai held the top two positions by major indicators. By 2026, Bank of Jiangsu had comprehensively overtaken Bank of Beijing on major indicators, while Bank of Ningbo had surpassed Bank of Shanghai and exceeded Bank of Beijing in total market value, operating revenue and net profit. Bank of Jiangsu currently ranks first among city commercial banks by total assets, operating revenue and net profit, while Bank of Ningbo's total market value exceeds that of Bank of Jiangsu.

In terms of asset size, Bank of Jiangsu's total assets rose from RMB 1.6 trillion in 2016 to RMB 5.6 trillion at end-June 2026, an increase of 2.5 times. Over the same period, Bank of Ningbo's total assets grew 3.5 times, approaching RMB 4 trillion at end-June 2026, a gap of about RMB 1.6 trillion from Bank of Jiangsu. Bank of Ningbo's total assets as a proportion of Bank of Jiangsu's rose from 55.4% in 2016 to 80% around 2022, then fell back to 70.4% at end-June 2026.

Bank of Jiangsu was formed through the merger and restructuring of 10 city commercial banks within Jiangsu Province. Apart from Bank of Jiangsu, only three city commercial banks, including Bank of Nanjing, currently operate in the province. At end-June 2026, Bank of Jiangsu's government-related loans to four industries including leasing and business services totaled RMB 944.5 billion, accounting for about half of its corporate loans. At the same date, Bank of Jiangsu's core tier-one capital adequacy ratio was less than one percentage point above the regulatory requirement.

Bank of Ningbo is located in Zhejiang Province, whose economy and social financing scale are smaller than Jiangsu's, and the province hosts China Zheshang Bank and more than 10 other city commercial banks. At end-June 2026, credit extended outside Zhejiang accounted for 37.4% of Bank of Ningbo's lending, higher than Bank of Jiangsu's 17.6%. Bank of Ningbo's financial investments as a proportion of total assets stood at 43.6%, the second highest among listed banks and 2.6 percentage points above Bank of Jiangsu. At end-June 2026, Bank of Ningbo's personal loans totaled RMB 537 billion, equivalent to 83% of Bank of Jiangsu's personal loan scale, with the same ratio for financial investments and corporate loans at 75% and 66% respectively.

In terms of operating revenue, Bank of Jiangsu's revenue rose from RMB 31.4 billion in 2016 to RMB 87.9 billion in 2025, an increase of 1.8 times. Over the same period, Bank of Ningbo's operating revenue rose to RMB 72 billion, an increase of two times. Bank of Ningbo's operating revenue as a proportion of Bank of Jiangsu's rose from 75.4% in 2016 to 82.8% in 2021, held at around 82% from 2022 to 2025, and reached 84.7% in the first half of 2026. This proportion was higher than Bank of Ningbo's total assets as a proportion of Bank of Jiangsu's over the same period.

In intermediary business, Bank of Ningbo's net fee and commission income in the first half of 2026 was RMB 4.32 billion, 1.35 times that of Bank of Jiangsu. Over the same period, intermediary business income accounted for 10.4% of Bank of Ningbo's revenue, four percentage points higher than Bank of Jiangsu's. Agency income accounted for nearly half of Bank of Jiangsu's intermediary business income, with corporate businesses such as credit commitments and bond underwriting contributing significantly. Agency income accounted for 85% of Bank of Ningbo's intermediary business income, mainly from fund, insurance and wealth management distribution. Both banks hold wealth management subsidiary licenses, and Bank of Ningbo also holds a public fund license.

In net interest income, Bank of Ningbo's net interest income as a proportion of Bank of Jiangsu's rose from 67.6% in 2016 to 78.7% in 2025, and stood at 79.7% in the first half of 2026. In the first half of 2026, Bank of Ningbo's net interest margin was 1.7%, six basis points higher than Bank of Jiangsu's, while its deposit interest expense ratio was 14 basis points lower. On the asset side, Bank of Jiangsu's loan yield exceeded Bank of Ningbo's after it increased government-related lending.

In net profit, the gap between Bank of Ningbo and Bank of Jiangsu narrowed rapidly from 2016 to 2021, with the two close in 2020 and 2021. After 2022 the gap widened, and in the first half of 2026 Bank of Ningbo's net profit was equivalent to 75.7% of Bank of Jiangsu's. Bank of Jiangsu substantially increased its provision charges in 2020 and maintained a high level in 2021.

In efficiency indicators, Bank of Ningbo's return on equity was significantly higher than Bank of Jiangsu's from 2016 to 2021, and the gap narrowed after 2022. In 2025, Bank of Jiangsu overtook Bank of Ningbo by a narrow margin. In the first half of 2026, Bank of Jiangsu's annualized weighted average return on equity was 15.72%, 1.48 percentage points higher than Bank of Ningbo's. At end-June 2026, Bank of Ningbo's core tier-one capital adequacy ratio was 9.53%, 0.86 percentage points higher than Bank of Jiangsu's.

In asset quality, Bank of Ningbo's non-performing loan ratio has remained below 1% for 19 consecutive years, standing at 0.76% at end-June 2026. Bank of Jiangsu's non-performing loan ratio fell from 1.43% in 2016 to 0.81% at end-June 2026. In terms of provisions, at end-June 2026 Bank of Ningbo's provision coverage ratio was 373.35% and Bank of Jiangsu's was 304.83%, both above regulatory requirements. The gap between the two banks' provision coverage ratios narrowed from more than 100 to 300 percentage points previously to 30 to 70 percentage points over the past three years.

Overall, over the past decade Bank of Ningbo led Bank of Jiangsu on efficiency indicators, but its advantage narrowed. On aggregate indicators, Bank of Jiangsu led Bank of Ningbo overall, with the gap shrinking; the gaps in net profit and operating revenue were relatively small, while the gap in asset size was large. The year 2022 was the dividing line for these changes. Before 2022, Bank of Ningbo led on quality indicators and rapidly narrowed the gap with Bank of Jiangsu on aggregate indicators. After 2022, Bank of Jiangsu's lead on aggregate indicators widened again, while Bank of Ningbo's advantage on efficiency indicators narrowed.