Zheng Quan Ri Bao·2025-09-01 13:03Core Viewpoint - The performance report of China Merchants Bank for the first half of 2025 shows a slight decline in revenue but a modest increase in net profit, indicating resilience amid challenging market conditions [1][2]. Financial Performance - China Merchants Bank's revenue decreased by 1.72% year-on-year to 169.969 billion yuan, while net profit attributable to shareholders rose by 0.25% to 74.930 billion yuan, marking a positive turnaround compared to the first quarter [1]. - Total assets increased by 4.16% from the end of 2024 to 12.66 trillion yuan, and the non-performing loan ratio decreased by 0.02 percentage points to 0.93% [1]. Net Interest Margin - The net interest margin for the first half of the year fell by 0.12 percentage points to 1.88%, although it remains significantly above the industry average [2]. - The bank's deposit cost is already lower than the industry average, with demand deposits making up 50% of the deposit structure, limiting further reduction in deposit costs [2]. Retail Business and Credit Risk - The retail business of China Merchants Bank is performing well, with total assets under management (AUM) reaching 16.03 trillion yuan, a 7.39% increase from the end of 2024 [1]. - The retail non-performing loan ratio rose to 1.03%, an increase of 0.07 percentage points from the end of 2024, reflecting challenges in the retail credit sector [4][5]. Market Trends and Customer Preferences - There is a noted shift in customer risk preferences towards equity assets, with a marginal improvement in aggressive investment preferences, although a conservative approach remains predominant [5]. - The bank plans to enhance its wealth management capabilities by diversifying products and improving global asset allocation services [5]. Industry Context - The "anti-involution" trend in the banking sector is expected to stabilize loan pricing and control deposit costs, contributing to improved asset quality [3]. - The retail credit industry is facing unprecedented challenges, with a decline in market demand and an increase in risk exposure due to economic slowdown and reduced consumer repayment capacity [5].