Core Viewpoint - Postal Savings Bank of China (PSBC) demonstrates strong financial performance with a net interest margin of 1.70% and a five-year average ROE of 11.26%, exceeding industry averages, indicating robust operational efficiency and growth potential [1][7]. Financial Performance - As of June 2025, PSBC's total assets reached 18.19 trillion yuan, a 6.47% increase from the previous year, while total liabilities grew by 6.21% to 17.05 trillion yuan [4]. - The bank reported operating income of 1794.46 billion yuan, a year-on-year increase of 1.50%, and net profit of 494.15 billion yuan, up 1.08% [1]. - Public loans increased by 5410.98 billion yuan, representing a growth of 14.83%, with a year-on-year increase of 2229.24 billion yuan [4]. Net Interest Margin - PSBC's net interest margin for the first half of 2025 was 1.70%, a decrease of 17 basis points from 2024, primarily due to one-time factors affecting loan yields [2]. - The bank's self-operated deposits increased by 1300 billion yuan year-on-year, with the interest rate on these deposits declining to approximately 1.1% [3]. Loan Growth and Quality - The bank's credit growth rate of 10.1% in the first half of 2025 outpaced the industry average of 7.1%, with a focus on maintaining a balanced approach to loan volume and pricing [5]. - The overall non-performing loan ratio stood at 0.49%, a decrease of 5 basis points from the previous year [5]. Strategic Initiatives - PSBC aims to enhance capital efficiency and diversify income sources, with non-interest income increasing by 10 percentage points over the past five years [7]. - The bank is implementing a centralized approval process for retail loans to improve risk management and operational efficiency [8]. Operational Efficiency - The bank has initiated ten projects to promote a modern, centralized operational model, with five already implemented nationwide, significantly reducing operational costs [9]. - The cost-to-income ratio decreased by 5.15% in the first half of 2025, reflecting improved management efficiency [9].

Group 1 - The core viewpoint is that the performance of listed banks has significantly improved in the first half of 2025, with total operating income exceeding 2.9 trillion yuan and net profit exceeding 1.1 trillion yuan [1][2] - Non-interest income has played a crucial role in supporting the improvement of bank performance, with notable growth in banks like Jiangyin Bank and Changshu Bank, which achieved double-digit year-on-year growth in both operating income and net profit [1][2][3] - The net interest margin (NIM) remains a concern for the banking sector, with management from various banks indicating that while there is still downward pressure on NIM, the rate of decline is expected to gradually stabilize [1][4] Group 2 - Major banks such as Industrial and Commercial Bank of China, China Construction Bank, Agricultural Bank of China, Bank of China, and Postal Savings Bank of China reported the highest operating incomes in the first half of the year, with figures of 427.09 billion yuan, 394.27 billion yuan, 369.94 billion yuan, 329.00 billion yuan, and 179.45 billion yuan respectively [2] - In terms of net profit, the top five banks were also led by Industrial and Commercial Bank of China, with a net profit of 168.10 billion yuan, followed by China Construction Bank at 162.08 billion yuan, Agricultural Bank of China at 139.51 billion yuan, Bank of China at 117.59 billion yuan, and China Merchants Bank at 74.93 billion yuan [2] - Jiangyin Bank and Changshu Bank reported impressive growth rates in their financial performance, with Jiangyin Bank's operating income growing by 10.45% and net profit by 16.63%, while Changshu Bank's operating income increased by 10.10% and net profit by 13.51% [2][3] Group 3 - The "anti-involution" policy is seen as an opportunity for banks, with expectations that it will help stabilize the decline in net interest margins [4] - The policy is expected to alleviate the downward pressure on asset yields in the banking sector, although it may also present challenges due to varying implementation across different regions and banks [4] - Long-term, the "anti-involution" policy is anticipated to improve supply-demand relationships, benefiting corporate profitability and driving financial resources towards high-end manufacturing and green economy sectors, which could help banks optimize their asset and client structures [4]

Investment Rating - The investment rating for the company is "Buy" (maintained) [8] Core Views - The company's revenue showed steady improvement, with a 3.76% year-on-year increase in revenue for the first half of 2025, reaching approximately 329 billion CNY [2][13] - The net interest income decreased by 5.27% year-on-year, while non-interest income increased by 26.43%, indicating a shift in revenue structure [2][3] - The company is expected to see a gradual increase in net profit attributable to shareholders, with projected growth rates of 0.61%, 3.26%, and 3.81% for 2025-2027 [5] Financial Performance - For the first half of 2025, the company reported a net interest margin of 1.26%, down 3 basis points from the first quarter of 2025 [2][15] - The total interest-earning assets amounted to 35.69 trillion CNY, reflecting a year-on-year growth of 8.84% [4][22] - The non-performing loan ratio stood at 1.24%, with a provision coverage ratio of 197.4% [4][27] Revenue Structure - The revenue structure for the first half of 2025 consisted of net interest income at 214.82 billion CNY (65.29% of total revenue) and non-interest income at 114.19 billion CNY [2][3] - The company’s fee and commission income increased by 9.17% year-on-year, while investment income decreased by 14.72% [3][21] Asset and Liability Management - The company’s interest-bearing liabilities reached 31.24 trillion CNY, a year-on-year increase of 5.10% [4][26] - The average cost of deposits decreased to 1.74%, down 25 basis points from the end of 2024 [3][20] - The proportion of demand deposits increased to 42.73%, reflecting a growth of 11.63% year-on-year [25][26] Asset Quality - The overall non-performing loan ratio for corporate loans was recorded at 1.19%, showing improvement compared to the end of 2024 [27][29] - Retail loan non-performing rates increased slightly to 1.15% [28][30]

Core 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].

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]

Core Insights - The six major state-owned banks in China reported mixed performance in their mid-year results for 2025, with total assets exceeding 200 trillion yuan and a combined net profit of 693.9 billion yuan, averaging 3.8 billion yuan per day [1][2] Financial Performance - All six banks achieved revenue growth year-on-year, with China Bank leading at 3.76% and Construction Bank following at 2.15%, while net profit showed a "three up, three down" trend [2][3] - Agricultural Bank recorded the highest net profit growth at 2.53%, while Industrial and Commercial Bank, Construction Bank, and China Bank experienced declines in net profit [2][3] Asset Quality and Risk Management - The non-performing loan (NPL) ratio decreased for five banks, with Postal Savings Bank being the only one to see an increase, maintaining the lowest NPL ratio at 0.92% [6][7] - The provision coverage ratio for non-performing loans varied, with China Bank's ratio dropping below 200%, while Agricultural Bank maintained the highest at 295% [7] Capital Adequacy and Dividends - The core Tier 1 capital adequacy ratio showed mixed results, with three banks increasing their ratios and three decreasing, while all banks maintained a ratio above 10% [8] - The six banks proposed a total interim dividend of 204.66 billion yuan, with each bank distributing 30% of their net profit as cash dividends [8][9] Interest Margin and Fee Income - Net interest margins continued to decline, with Postal Savings Bank having the highest margin at 1.7%, despite a year-on-year decrease [3][4] - Fee and commission income showed a mixed performance, with Postal Savings Bank achieving the highest growth at 11.59%, while Industrial and Commercial Bank and Traffic Bank saw declines [5] Asset Growth - By the end of June 2025, total assets of the six banks reached 214 trillion yuan, with Construction Bank showing the largest growth rate at 9.52% [6]

Core Viewpoint - The core viewpoint of the article emphasizes that despite facing significant operational pressures in the first quarter, the company is optimistic about achieving steady progress and improving performance in the second half of the year, as indicated by the bank's leadership during the mid-year performance release [2][3]. Financial Performance - In the first half of the year, the bank's revenue reached 169.97 billion yuan, a year-on-year decrease of 1.72%, while net profit attributable to shareholders was 74.93 billion yuan, a slight increase of 0.25% [3]. - The bank's net interest income was 106.09 billion yuan, reflecting a year-on-year growth of 1.57%, while the net interest margin stood at 1.88%, down 12 basis points year-on-year [3][4]. Net Interest Margin - The bank's net interest margin is higher than the national average by 46 basis points, showcasing a leading position, but it faces relative pressure due to factors such as low deposit costs and a high proportion of mortgage loans [4][5]. - The bank's management believes that factors supporting the stabilization of the net interest margin still exist, including policies to boost consumption and the adjustment of deposit and loan rates [5]. Retail Business and Wealth Management - The retail business remains strong, with assets under management (AUM) surpassing 16 trillion yuan and a 6% year-on-year increase in retail wealth management fees and commissions [5][6]. - The bank's retail loan non-performing ratio increased to 1.03%, up from 0.96% at the end of the previous year, indicating rising risks in the retail lending sector [6]. Credit Card Business - The bank's wealth management fees and commissions saw an 11.89% year-on-year increase, marking the first positive growth in three years, driven by significant growth in income from wealth management products [7]. - However, credit card income faced pressure, with transaction volume declining by 8.3% year-on-year, leading to a 16% decrease in credit card income [8]. Industry Trends - The "anti-involution" trend is expected to create a healthier market environment, which will help banks manage asset quality risks more effectively [9]. - The bank anticipates that future credit demand will shift towards industrial mergers and acquisitions, as traditional sectors like real estate show weaker demand [9].

Core Viewpoint - The performance of A-share listed banks has shown a comprehensive recovery, with state-owned banks demonstrating the most significant improvement in performance as of H1 2025 [1][2]. Financial Performance - As of H1 2025, the cumulative year-on-year growth rates for A-share listed banks are 1.0% in revenue, 1.1% in PPOP, and 0.8% in net profit attributable to shareholders, with quarter-on-quarter increases of +2.8 percentage points, +3.3 percentage points, and +2.0 percentage points respectively [1]. - The growth in net interest income increased by 0.4 percentage points quarter-on-quarter, while net fee income and other non-interest income grew by 3.8 percentage points and 13.9 percentage points respectively [1]. Asset and Loan Growth - Total assets, interest-earning assets, and total loans of listed banks saw year-on-year growth rates of +2.1 percentage points, with loan growth being marginally positive at +0.04 percentage points [2]. - The contribution of corporate and retail loans is approximately 9:1, indicating that state-owned and city commercial banks have stronger marginal loan growth compared to joint-stock and rural commercial banks [2]. Interest Margin and Cost - The net interest margin for listed banks in H1 2025 is estimated at 1.33%, narrowing by 11 basis points compared to 2024, primarily due to improved funding costs [3]. - The cost of interest-bearing liabilities improved by 30 basis points in H1 2025 compared to the same period last year, with high-interest time deposits entering a concentrated repricing cycle [3]. Asset Quality - As of H1 2025, the non-performing loan (NPL) ratio decreased by 0.4 basis points quarter-on-quarter, while the overdue rate increased by 3 basis points [4]. - The pressure on asset quality remains concentrated in personal loans, with mortgage loans, consumer loans, business loans, and credit cards showing increases in NPL generation rates [4]. Capital Adequacy - Capital adequacy ratios have significantly improved, with 17 banks planning to implement mid-term dividends in H1 2025, particularly among state-owned banks [5]. Investment Recommendations - With the improvement in bank performance in H1 2025, the adjustment space for bank stocks is expected to be limited, focusing on high-dividend stocks and fundamentally sound mid-sized banks [7].

Core Viewpoint - Guiyang Bank's mid-year report for 2025 reveals a significant decline in both revenue and net profit, marking the third consecutive year of such performance, alongside a record high in non-performing loan ratio, indicating severe challenges in asset quality and profitability [1][2]. Financial Performance - Guiyang Bank reported a revenue of 6.5 billion yuan, a year-on-year decrease of 12.2%, and a net profit attributable to shareholders of 2.474 billion yuan, down 7.2% year-on-year [2]. - The bank's net interest margin fell to 1.53%, down 0.28 percentage points from the previous year and down 0.66 percentage points from 2023 [2]. - Net interest income for the period was 4.92 billion yuan, a decrease of 15.26%, with 1.6 billion yuan attributed to scale factors and 7.26 billion yuan to interest factors [2]. Comparison with Peers - In contrast to Guiyang Bank, several listed city commercial banks reported growth in net interest income, such as Jiangsu Bank with a 19.1% increase [3]. - Despite a higher net interest margin than Chongqing Bank, Guiyang Bank's significant drop in net interest income suggests potential internal structural or operational efficiency issues [3]. Asset Quality Concerns - As of June 30, Guiyang Bank's total assets reached 741.54 billion yuan, with total loans increasing to 343.46 billion yuan, a growth of 1.27% [4]. - The non-performing loan balance rose to 5.824 billion yuan, with a non-performing loan ratio climbing to 1.7%, the highest in its history [4]. - The bank's loan distribution shows real estate loans at 52.76 billion yuan, with a non-performing rate of 1.75%, while the wholesale and retail sector had the highest non-performing balance [4]. Loan Classification and Coverage - The proportion of normal loans decreased by 0.27 percentage points, while the shares of special mention, substandard, and loss loans increased [5]. - The provision coverage ratio stood at 238.64%, down 18.43 percentage points from the previous year, indicating a declining trend despite a slight increase from the first quarter [6]. - The capital adequacy ratio was reported at 14.97%, with tier 1 and core tier 1 capital ratios at 13.77% and 12.73%, respectively, showing a slight decline but remaining at a relatively high level among listed city commercial banks [7].

Financial Data and Key Indicators Changes - The bank achieved a net operating income of RMB 169.9 billion, a year-on-year decrease of 1.73% [6] - Net profit attributable to shareholders was RMB 74.9 billion, reflecting a year-on-year increase of 0.25% [6] - Return on average assets (ROAA) and return on average equity (ROAAE) were 1.21% and 13.85% respectively, maintaining industry-leading levels [7] - Net interest margin (NIM) was 1.88%, a decrease of 12 basis points year-on-year [7] - Non-interest income was RMB 63.8 billion, a year-on-year decrease of 6.77% [7] - Cost-to-income ratio remained stable at 30.11% [8] Business Line Data and Key Indicators Changes - Retail loans accounted for 51.68% of total loans, a decrease of 1.23 percentage points [12] - Net operating income from retail business accounted for 56.6% of total, representing a year-on-year increase of 1.12 percentage points [13] - Wealth management fee and commission income increased by 11.89% year-on-year, reversing a downward trend since 2022 [7] - The balance of retail wealth management products (WMP) increased by 8.84% [25] Market Data and Key Indicators Changes - Total assets amounted to RMB 12.66 trillion, an increase of 4.16% [8] - Total loans and advances reached RMB 7.12 trillion, up by 3.31% [9] - Total deposits from customers were RMB 9.42 trillion, an increase of 3.58% [11] - The number of retail customers increased by 2.86%, totaling 216 million [16] Company Strategy and Development Direction - The bank aims to advance its value creation strategy, focusing on quality, profitability, and scale [5] - Plans to enhance refined management practices and optimize customer base [35] - Emphasis on differentiated development in retail finance and wealth management [36] - Focus on global and integrated operations, particularly in overseas markets [38] Management Comments on Operating Environment and Future Outlook - The banking industry faces challenges such as low interest rates and intensified competition, but China's economy shows signs of recovery [35] - Management expressed confidence in achieving steady progress in the second half of the year despite external pressures [44] - The bank will continue to implement strategies to manage costs and improve non-interest income [44] Other Important Information - The bank's capital adequacy ratio experienced a slight decline, with CET1 CAR at 14% [13] - Non-performing loan (NPL) ratio was 0.93%, a decrease of 0.02 percentage points [14] - The bank is enhancing its digital transformation and technology capabilities, implementing AI across various business areas [32] Q&A Session Summary Question: Can CMB continue its positive growth trend in the second half? - Management believes that despite pressures in the first quarter, the second quarter showed improvement and expects steady progress in the second half [44] Question: How will CMB carry out its retail strategy amidst challenges? - Management highlighted a focus on deposit and settlement services, technology integration, and AI application to enhance retail banking [48][49] Question: How will the anti-evolution policy affect CMB's NIM and asset quality? - Management indicated that the anti-evolution policy aims to stabilize competition and improve asset quality, which could benefit the bank's NIM [79] Question: What opportunities does the recovery in the capital market present for corporate finance? - Management noted that CMB has a strong customer base and unique financing perspectives, positioning it well to capitalize on opportunities in corporate finance [81]