Core Viewpoint - The retail banking sector is experiencing intensified competition, with significant growth in retail assets under management (AUM) and private banking clients among major banks, despite previous challenges in the market [2][4][7]. Retail AUM - The top three banks in retail AUM are China Merchants Bank (CMB) with 16.03 trillion yuan, Industrial Bank with 5.52 trillion yuan, and CITIC Bank with 4.99 trillion yuan [6][5]. - CMB's AUM growth is 7.39%, while Industrial Bank and CITIC Bank have growth rates of 8.00% and 6.52%, respectively [6]. - Notably, the AUM of several banks has increased significantly, with Zhejiang Commercial Bank and Pudong Development Bank showing growth rates of 12.48% and 10.55% [4][6]. - CMB's AUM surpasses that of its competitors by over 10 trillion yuan, establishing a substantial lead in the retail banking sector [4][5]. Private Banking Clients - The number of private banking clients has also seen substantial growth, with Zhejiang Commercial Bank leading at 15.52% growth, followed by Huaxia Bank, Minsheng Bank, and Pudong Development Bank with growth rates of 13.79%, 12.84%, and 10.15%, respectively [7]. - CMB, CITIC Bank, and Industrial Bank also reported increases in private banking clients, all exceeding 8% growth [7]. Wealth Management Revenue - Wealth management income has shown significant increases, with CMB reporting an 11.89% growth in fees and commissions, marking the first positive growth in three years [8]. - CITIC Bank's wealth management income growth reached a four-year high at 10.3%, while Industrial Bank's retail wealth income grew by 13.45% [8]. Retail Loan Quality - Retail loan non-performing ratios vary significantly among banks, with Bohai Bank having the highest at 4.43%, while CMB and Industrial Bank maintain the lowest at 1.03% and 1.22%, respectively [11][9]. - Despite CMB's strong performance, its non-performing ratio increased by 0.07 percentage points compared to the previous year [11]. Retail Strategy - The introduction of consumer loan interest subsidies is expected to enhance the competitive landscape, shifting focus from price wars to technology, service, and quality differentiation [12][13]. - Banks are emphasizing asset allocation and the application of AI models in their retail strategies, with CMB planning to integrate AI assistants to improve efficiency and workflow [14][15].

1 国有大行稳固头部地位 商业银行逐步开始实施多元化的平台经营战略，以信用卡服务为原点升级数字生活服务，践行平台化、智能化、深交互的服务策略，加速创建与用户全 面、深入、个性化的连接范式。 | 排名 | 名称 | 2025年H1平均MAU (万) 环比变化率 (%) | | | --- | --- | --- | --- | | 1 | 中国农业银行 C | 23794.9 | +4.8% | | 2 | [ [ 中国工商银行 | 18945.9 | +0.2% | | 3 | ◆ 中国建设银行 | 10621.1 | -0.4% | | 4 | 0 中国银行 | 8794.5 | +3.5% | | 5 | 邮储银行 | 5224.4 | +2.0% | | 6 | 交通银行 | 2334.2 | -5.0% | 图：2025年H1手机银行APP用户规模 当前，商业银行数字化转型迈入新阶段，银行 App面临的市场竞争愈加激烈。但部分银行的App运营仍面临个性化推荐不够精准、产品服务趋于同质化、 技术架构敏捷性不足等诸多挑战。 当手机银行用户规模连续三年困于6.5-7亿区间、单机单日有效使用时长从4.93分钟 ...

Core Viewpoint - The retail banking sector in China is facing significant challenges, with banks like Ping An Bank experiencing a decline in retail business performance due to past strategies that prioritized high-risk, high-reward approaches. The industry is now reflecting on these strategies as they navigate a difficult economic environment [1][2][4]. Retail Banking Performance - In the first half of 2025, major banks reported a decline in retail financial income and profits, with Agricultural Bank of China, China Construction Bank, and Industrial and Commercial Bank of China all showing varying degrees of downturn in personal financial business [5][6][7]. - Ping An Bank's retail banking revenue fell by over 20% year-on-year, with its pre-tax profit dropping to 1.2 billion yuan, contributing only 4% to total profits, down from 7% [8][10]. Asset Quality and Credit Risk - The retail banking sector is under pressure regarding asset quality, with rising non-performing loan ratios impacting profitability. For instance, Ping An Bank's retail loan non-performing rate was 1.27% [13][14]. - The overall economic environment, including a downturn in real estate investment and sluggish consumer demand, has led to a significant reduction in retail business income across the board [12][16]. Wealth Management Transition - Banks are attempting to shift their focus from traditional retail lending to wealth management, which requires long-term strategic investment and organizational capability [16][20]. - Despite the challenges, some banks, like China Merchants Bank, have shown resilience in their wealth management capabilities, with a notable increase in their wealth management income [24]. Future Strategies - Banks are re-evaluating their strategies, emphasizing quality and efficiency over mere scale. For example, China Merchants Bank is focusing on core banking functions while enhancing digital services and AI integration [18][19]. - The shift towards wealth management is seen as essential for banks to maintain competitiveness, especially as deposit trends shift towards investment products [19][22].

Core Viewpoint - The retail banking sector in China is facing significant challenges, with declining revenues and profits in retail financial services, particularly in retail credit and wealth management, as economic conditions worsen [1][12][18]. Group 1: Retail Banking Performance - In the first half of 2025, retail banks continued to experience pressure, with major banks reporting declines in retail financial income and profits [4][7]. - Agricultural Bank of China reported retail financial income of 190.18 billion yuan, down 6.6% year-on-year, and a profit of 68.51 billion yuan, down 23.59% [4]. - China Construction Bank's retail financial income was 181.47 billion yuan, up 0.99%, but profits fell by 19.62% to 78.73 billion yuan [4]. - Industrial and Commercial Bank of China saw retail financial income decrease by 0.67% to 169.31 billion yuan, while profits increased by 46.05% to 92.77 billion yuan, largely due to a low base from the previous year [4][6]. - Ping An Bank's retail financial income plummeted by 20.49% to 31.08 billion yuan, with profits down 45.98% to 1.20 billion yuan [4][7]. Group 2: Credit Quality and Challenges - The retail loan non-performing ratio for major banks has shown signs of deterioration, with Ping An Bank at 1.27%, and the credit card non-performing ratio at 2.3% [13]. - The overall economic environment, including a downturn in the real estate sector and low consumer demand, has led to a significant reduction in retail banking income and growth [12][18]. - The shift from high-risk, high-return lending strategies to a focus on wealth management is becoming increasingly important for banks, but this transition is challenging and requires long-term investment [17][19]. Group 3: Wealth Management and Future Strategies - Wealth management is seen as a critical area for future growth, but banks are struggling to effectively transition from traditional retail banking to wealth management services [17][20]. - The average interest rate on personal deposits for major banks varies, with China Merchants Bank maintaining a low rate of 1.18%, which helps in reducing funding costs [24]. - China Merchants Bank reported a significant increase in wealth management income, reaching 20.86 billion yuan in the first half of 2025, marking a 5.45% year-on-year growth [25]. - The retail AUM (Assets Under Management) for China Merchants Bank is significantly lower in terms of retail deposits compared to its peers, indicating a stronger wealth management capability [22][23].

Core Viewpoint - The credit card sector in China is experiencing a significant decline, with various metrics such as credit card loan balances, transaction volumes, and the number of active cards showing downward trends, indicating a shift in consumer behavior and market dynamics [1][2][3]. Credit Card Loan Balances - The total credit card loan balance of 14 major banks reached 7.52 trillion yuan, a decrease of 197.57 billion yuan or 2.56% compared to the beginning of the year, with 11 banks reporting a decline [1][2]. - China Bank reported the largest decrease in credit card loans, down 13.88% to 522.50 billion yuan, while other banks like Ping An Bank and Industrial Bank saw reductions of 9.23% and 8.07%, respectively [2]. Credit Card Transaction Volumes - The total credit card transaction amount for 12 banks was 11.47 trillion yuan, reflecting a year-on-year decline of 11.05%, equivalent to a drop of 1.42 trillion yuan [2]. - The highest decline in transaction volumes was observed in China Bank and Everbright Bank, both exceeding 18%, while Construction Bank and Agricultural Bank experienced declines of around 5% [2]. Credit Card Circulation - The total number of circulating credit cards among 10 banks was 890 million, a decrease of 3.91 million cards compared to the previous year [3]. - Ping An Bank saw a net reduction of 6.26 million cards, a decline of 12%, while other banks like Industrial and Traffic Banks also reported significant reductions [3]. Credit Card Business Revenue - Credit card business revenue for several banks is in decline, with only four banks disclosing figures. For instance, China Merchants Bank reported a 4.96% drop in interest income and a 16.23% decrease in non-interest income [4][5]. - Other banks like Citic Bank and Everbright Bank experienced double-digit declines in credit card business revenue, with reductions of 14.61% and 21.3%, respectively [5]. Credit Card Non-Performing Loans - The non-performing loan (NPL) ratio for credit cards is on the rise for most banks, with Traffic Bank's NPL ratio increasing by 0.63 percentage points [6]. - As of mid-2025, China Merchants Bank maintained a stable NPL ratio of 1.75%, while Postal Savings Bank and Agricultural Bank reported lower ratios around 1.5% [6]. Changing Consumer Behavior - There is a noticeable shift in consumer attitudes towards credit cards, with many individuals opting to cancel excess cards, reflecting a trend towards minimalism in card ownership [7]. - Users are expressing dissatisfaction with the reduced benefits of credit cards, leading to a more selective approach in maintaining only essential cards [7]. Industry Outlook - Despite the overall contraction in the credit card market, there is potential for quality improvement and differentiation among banks, focusing on high-end customer needs and basic customer demands [8]. - Banks are actively pursuing differentiated strategies, such as promotional activities and product innovations aimed at enhancing customer engagement and satisfaction [8].

Core Viewpoint - The listed banks in China have shown strong performance in the first half of the year and are preparing to reward investors with significant mid-term dividends, reflecting their profitability and commitment to shareholder returns [2][4]. Group 1: Dividend Distribution - Among the 42 listed banks in A-shares, nearly half will implement mid-term dividends for 2025, with 17 banks already disclosing their plans, totaling 237.54 billion yuan [2]. - The six major state-owned banks lead in dividend distribution, with Industrial and Commercial Bank of China (ICBC) at the forefront, distributing 50.396 billion yuan, followed by China Construction Bank and Agricultural Bank of China with 48.605 billion yuan and 41.823 billion yuan respectively [2]. - The total dividends from the six major state-owned banks account for 86% of the total dividends announced by the 17 banks [2]. Group 2: Specific Bank Plans - Among joint-stock banks, CITIC Bank, Minsheng Bank, Ping An Bank, and Huaxia Bank have announced their mid-term dividend plans, with CITIC Bank proposing a total of 10.461 billion yuan [3]. - In the city and rural commercial banks, seven banks have announced mid-term dividends, including Ningbo Bank and Shanghai Bank, with Shanghai Bank proposing a cash dividend of 3 yuan per 10 shares [3]. - Four banks have a dividend payout ratio exceeding 30%, including Shanghai Bank and Postal Savings Bank, indicating a strong commitment to returning value to shareholders [3]. Group 3: Market Implications - The expansion of banks implementing mid-term dividends and their willingness to distribute reflects the resilience of the banking sector's profitability and a positive response to shareholder return demands [4]. - This trend indicates improved cash flow and capital management capabilities among certain banks, which may help boost market confidence and attract long-term value investors [4].

Core Viewpoint - Ping An Bank aims to enhance its retail banking strategy by prioritizing efficiency while considering scale, focusing on wealth management and asset management quality development [2][4]. Group 1: Retail Banking Strategy - Ping An Bank's retail banking strategy emphasizes "efficiency first, scale second," aiming to improve the quality of asset management [2][4]. - The bank plans to upgrade its brand with the slogan "Buy Wealth Management, Choose Ping An" to enhance customer trust and satisfaction [2][4]. - The bank's current AUM is approximately 4.21 trillion yuan, with a need to increase the proportion of basic wealth management products [5]. Group 2: Market Environment and Demand - The low interest rate environment has increased public demand for wealth management products as a means to preserve and grow wealth [3][4]. - Ping An Bank recognizes the need for high-quality wealth management solutions to meet customer expectations in a low-rate market [4][5]. Group 3: Differentiation and Service Capabilities - Ping An Wealth Management aims to differentiate itself in a market with over 40,000 similar products by enhancing customer service and product offerings [6][9]. - The bank has introduced innovative services such as "Wealth Management Night Market" to cater to customers' needs for flexibility [6][7]. - The bank utilizes AI technology to provide timely insights and asset allocation analysis, addressing customer concerns during market fluctuations [6][7]. Group 4: Investment Management Practices - Ping An Wealth Management is implementing an "industrialized and platformized" investment management approach to ensure consistency in product risk-return characteristics [8]. - The company focuses on optimizing decision-making processes and investment efficiency through specialized roles within its teams [8]. Group 5: Competitive Advantages - Ping An Bank leverages its strong backing from the Ping An Group to offer unique service value, including comprehensive financial and healthcare services [9][10]. - The bank boasts a wide range of products and a large professional wealth management team, enhancing customer support throughout the investment process [10]. - The bank's app provides a streamlined purchasing process, contributing to a superior customer experience [10].

Core Viewpoint - Ping An Bank aims to become "China's most outstanding and globally leading intelligent retail bank" by enhancing its retail banking strategy, focusing on "efficiency first, scale considered" in its retail business development [1][2]. Group 1: Retail Banking Strategy - Ping An Bank has appointed Wang Jun as the assistant president in charge of retail banking, emphasizing the importance of asset management and basic wealth management as a "reservoir" for high-quality AUM (Assets Under Management) development [1][3]. - The bank's retail AUM currently stands at approximately 4.21 trillion yuan, with a need to increase the proportion of basic wealth management products [3]. Group 2: Wealth Management Services - The bank is responding to the low interest rate environment by positioning wealth management as a "wealth ballast," aiming to provide stable and secure investment products for customers [3][4]. - Ping An Wealth Management has launched a brand upgrade campaign titled "Buy Wealth Management, Choose Ping An" to enhance customer trust and satisfaction [1][3]. Group 3: Differentiation in Wealth Management - With over 40,000 bank wealth management products in the market, Ping An Wealth Management is focusing on creating differentiated service capabilities to stand out in a highly competitive environment [5][6]. - The company is leveraging AI and big data to provide tailored services to a large customer base, enhancing the customer experience through features like "Wealth Management Night Market" for flexible trading [6][7]. Group 4: Investment Management Practices - Ping An Wealth Management is implementing an "industrialized and platformized" investment management model to ensure consistency in risk-return characteristics and improve investment efficiency [7]. - The company aims for absolute returns, with clear performance targets for each product, supported by a robust platform for achieving these goals [7]. Group 5: Service Advantages - Ping An Bank boasts five core service advantages: strong backing from the Ping An Group, a comprehensive product offering, a large professional wealth management team, fast transaction processes via its app, and exclusive customer benefits [8]. - The bank's wealth management clients generally prefer investments that yield higher returns than deposits while avoiding high risks, indicating a cautious approach to market fluctuations [8].

Core Viewpoint - Ping An Bank aims to become "China's most outstanding and globally leading intelligent retail bank," focusing on a retail banking strategy that prioritizes efficiency while considering scale [2] Group 1: Retail Banking Strategy - Ping An Bank has introduced the concept of "efficiency first, scale considered" in its retail business, emphasizing the importance of asset management and basic wealth management as a "reservoir" for high-quality AUM (Assets Under Management) development [2][5] - The bank's current AUM stands at approximately 4.21 trillion yuan, with a need to increase the proportion of basic wealth management products to enhance overall wealth management quality [5] Group 2: Wealth Management Services - The bank's wealth management services are being upgraded to ensure customers feel more secure and assured when purchasing financial products, leveraging the strengths of Ping An Group, Ping An Wealth Management, and Ping An Bank [2][3] - In response to the low interest rate environment, wealth management is positioned as a "wealth ballast," with a focus on providing stable and secure financial products to help customers preserve and grow their wealth [5] Group 3: Differentiation in Wealth Management - Ping An Wealth Management aims to establish a competitive edge through three key service areas: flexibility in service, investment advisory, and investor education [8][9] - The introduction of the "Wealth Night Market" allows customers to trade outside traditional hours, addressing the needs of working individuals [8] - The use of AI technology in the "Ping An Wealth+" system provides timely insights and asset allocation analysis to alleviate customer anxiety during market fluctuations [8][9] Group 4: Industrialization and Platformization - Ping An Wealth Management is implementing an "industrialized and platformized" investment management approach to enhance product consistency and investment efficiency [11] - The industrialization process ensures that products within the same series maintain consistent risk-return characteristics, while platformization focuses on achieving absolute returns with clear investment guidelines [11] Group 5: Service Advantages - Ping An Bank's wealth management services are supported by a robust financial platform, a comprehensive product range, and a large team of over 5,000 wealth management professionals [13] - The bank offers a streamlined purchasing process through its mobile app, enhancing customer experience with quick transactions [13] - Customers are primarily seeking investment returns that exceed traditional savings rates without taking on excessive risk, indicating a cautious approach to market fluctuations [13]

Core Viewpoint - The mid-year performance report for 2025 reveals that the ten listed joint-stock banks have shown a stable overall operational trend, with total assets reaching 73.38 trillion yuan and net profits totaling 278.125 billion yuan, while also exhibiting diverse development characteristics across the industry [2] Group 1: Asset Performance - Total assets of the joint-stock banks have generally increased, with the leading banks being China Merchants Bank and Industrial Bank, with total assets of 12.657 trillion yuan and 10.614 trillion yuan respectively, marking growth rates of 4.16% and 1.01% compared to the end of the previous year [3][4] - Among the ten banks, except for China Minsheng Bank and Bohai Bank, all other banks achieved positive growth in total assets [4] Group 2: Revenue and Profitability - Seven out of ten banks reported a year-on-year decline in operating income, with only Shanghai Pudong Development Bank, China Minsheng Bank, and Bohai Bank achieving revenue growth [5][7] - China Merchants Bank led in net profit with 74.930 billion yuan, showing a slight increase of 0.25% year-on-year, while four banks experienced a decline in net profit [8][9] Group 3: Net Interest Margin - The net interest margin has shown a significant downward trend, with eight out of ten banks continuing to decline, influenced by factors such as the reduction in the Loan Prime Rate (LPR) and adjustments in mortgage rates [9][10] - China Merchants Bank reported the highest net interest margin at 1.88%, although it decreased by 0.12 percentage points year-on-year [10][11] Group 4: Asset Quality - The non-performing loan (NPL) balances of all ten banks have increased compared to the end of the previous year, with Bohai Bank experiencing the fastest growth in NPLs, reaching 17.269 billion yuan, a 4.79% increase [12][13] - The highest NPL ratios were recorded by Bohai Bank (1.81%), Huaxia Bank (1.60%), and China Minsheng Bank (1.48%), while China Merchants Bank had the lowest at 0.93% [14] Group 5: Provision Coverage Ratio - The provision coverage ratio has decreased for seven banks compared to the end of the previous year, with Ping An Bank experiencing the largest decline of 12.23 percentage points [15] - China Merchants Bank has the highest provision coverage ratio at 410.93%, while China Minsheng Bank has the lowest at 145.06% [15]