Xin Lang Cai Jing·2025-08-31 08:28Core Viewpoint - China Merchants Bank reported a slight decline in revenue but a small increase in net profit for the first half of 2025, indicating resilience in its core operations and a recovery in wealth management business [1][2][7] Financial Performance - The bank achieved a revenue of 169.97 billion yuan, a year-on-year decrease of 1.72%, while net profit reached 74.93 billion yuan, a slight increase of 0.25% [1][2] - Net interest income was 106.08 billion yuan, up 1.57% year-on-year, supported by stable growth in scale [2] - The net fee and commission income decreased by 1.89%, showing a narrowing decline compared to the first quarter [2] Wealth Management and Fee Income - Wealth management fee income showed a recovery, reaching 12.80 billion yuan, with an 11.9% year-on-year increase, driven by a rebound in capital markets [2] - The bank's credit card transaction volume declined, leading to a 16.37% drop in card fee income [2] Asset Quality and Risk Management - The non-performing loan (NPL) ratio stood at 0.93%, a decrease of 2 basis points from the beginning of the year, indicating stable asset quality [6] - The provision coverage ratio was 410.93%, reflecting strong risk mitigation capabilities [6] - The annualized NPL generation rate was 0.98%, showing a slight improvement [6] Loan and Deposit Growth - Total assets reached 12.66 trillion yuan, growing by 4.16% year-to-date, with loans and advances totaling 7.12 trillion yuan, up 3.31% [4] - Customer deposits increased to 9.42 trillion yuan, a growth of 3.58% from the start of the year [4] Strategic Developments - The bank is enhancing its retail wealth management capabilities, with total assets under management (AUM) surpassing 16 trillion yuan, reflecting a 7.39% increase [5] - The establishment of a financial asset investment company aims to strengthen equity investment and market-oriented debt-to-equity swap capabilities [5] Profitability Metrics - The net interest margin (NIM) was 1.88%, with a net interest spread of 1.79%, both showing a year-on-year decrease [3] - The average cost of customer deposits fell to 1.26%, a significant improvement of 34 basis points [3]