Jiutai Rural Commercial Bank’s net profit drops by 85%

Jiutai Rural Commercial Bank (06122.HK) recently issued a profit warning, predicting that its net profit in 2023 will fall by approximately 85%. This is mainly due to the decline in net interest income and the impact of the epidemic on corporate operations, coupled with the comprehensive impact of factors such as the conversion of new and old driving forces in the regional economy.

The impact of the epidemic on business operations

The epidemic has had a huge impact on the global economy, and business operations have been greatly affected. As a local bank, Jiutai Rural Commercial Bank's customers are mainly local small and medium-sized enterprises. These enterprises were greatly affected during the epidemic, resulting in a decline in the bank's net interest income.

Conversion of old and new driving forces in regional economy

As the economy develops, regional economies are also constantly changing. The conversion of old and new driving forces also brings challenges to the operations of local banks. Jiutai Rural Commercial Bank needs to constantly adjust its business model to cope with changes in the economic structure.

coping strategies

• Strengthen risk control and control the proportion of non-performing assets.
• Actively explore new business areas and expand revenue sources.
• Improve customer service levels and enhance customer satisfaction.

Looking to the future

Although Jiutai Rural Commercial Bank is facing certain difficulties, through active response strategies, it is believed that it will achieve better performance in future development. The bank will continue to be committed to providing customers with better financial services and achieving a win-win situation with customers.