Core Viewpoint - The current capital market is experiencing a phenomenon of deposit outflow, leading to increased pressure on demand deposits growth for China Merchants Bank (CMB) [1] Financial Performance - In the first half of 2025, CMB reported operating income of 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% [1] - CMB's daily earnings for the first half of 2025 averaged approximately 409 million yuan [1] - The bank's net interest income for the first half of 2025 was 106.09 billion yuan, up 1.57% year-on-year, with a net interest margin of 1.88%, down 12 basis points year-on-year [4] Deposit and Loan Trends - As of June 30, 2025, CMB's average daily balance of demand deposits was 4.38 trillion yuan, a year-on-year increase of 4.78%, accounting for 50.26% of total customer deposits [5] - The average cost of customer deposits was 1.26%, down 28 basis points from the end of the previous year [4] - Retail loans amounted to 3.61 trillion yuan, a slight increase of 0.94%, representing 53.43% of total loans, down 1.21 percentage points from the end of the previous year [7] Non-Interest Income - CMB's non-interest income for the first half of 2025 was 63.88 billion yuan, a decrease of 6.73% year-on-year, with net fee and commission income at 37.60 billion yuan, down 1.89% [6] - Wealth management fee and commission income saw a notable increase of 11.89% year-on-year, marking the first positive growth in three years [6] Retail Banking Strategy - CMB's retail banking business contributes over 55% to both revenue and profit, with a total retail customer base of 216 million, up 2.86% from the end of the previous year [7] - The bank's management emphasized a commitment to maintaining a strong retail strategy while being cautious in tactical execution amid rising risks in the retail credit sector [8][9]

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 a daily profit of 3.8 billion yuan [1][4]. 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 ranging from -1% to -2% [2][3]. Asset Quality and Risk Management - By the end of June 2025, the non-performing loan (NPL) ratio for the six banks decreased, with Postal Savings Bank being the only bank to see an increase, maintaining the lowest NPL ratio at 0.92% [9][10]. - The provision coverage ratio for non-performing loans varied, with China Bank's ratio falling below 200%, while Agricultural Bank maintained the highest at 295% [11][12]. 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% [12][13]. - 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 [12][14]. Interest Margin and Fee Income - The net interest margin continued to decline across the banks, with Postal Savings Bank having the highest margin at 1.7%, despite a year-on-year decrease [5][6]. - Fee and commission income showed growth for four banks, with Postal Savings Bank leading at an increase of 11.59%, while Industrial and Commercial Bank and Construction Bank saw declines [7].

Core Viewpoint - Hangzhou Bank reported a positive performance in the first half of 2025, with total assets reaching 22,355.95 billion yuan, a 5.83% increase year-on-year, and a net profit of 11,662 million yuan, reflecting a 16.66% growth compared to the previous year [2][3] Financial Performance - The bank achieved an operating income of 20,093 million yuan, up 3.90% year-on-year, with net interest income contributing 13,090 million yuan, an increase of 9.38% [3] - The net interest margin stood at 1.35%, down 7 basis points from the previous year, indicating a trend of narrowing margins in the banking sector [3][4] - The deposit interest rate decreased by 28 basis points compared to the previous year, which helped mitigate the decline in net interest margin [4][5] Strategic Direction - The bank's strategy focuses on "light capital, flow-oriented, internationalization, digitalization, and agility," aiming to enhance customer development and risk control [2][5] - Emphasis is placed on balancing growth and risk management, with a target growth rate of 10% to 20% deemed appropriate for the current market environment [6][7] Market Conditions - The bank is navigating a low-interest-rate environment and addressing challenges such as asset scarcity and competitive pricing pressures [4][10] - The demand for consumer loans is stabilizing, with the bank implementing various financial strategies to stimulate consumption and support small and micro enterprises [9][10] Loan Performance - As of June 2025, the bank's small and micro finance loan balance reached 1,561.66 billion yuan, with a growth rate of 2.82% [7] - The bank's retail finance loan balance was 1,484.40 billion yuan, reflecting a modest increase [7] - The bank's focus on comprehensive services aims to balance the relationship between volume, capital, profit, and risk, especially in a competitive lending environment [6][8]

Investment Rating - The report maintains a "Buy" rating for Minsheng Bank [5][8] Core Views - Minsheng Bank's revenue increased significantly, with a year-on-year growth of 7.83% in the first half of 2025, while the decline in net profit attributable to shareholders narrowed to -4.87% [2][5] - The bank's net interest margin stabilized at 1.39%, with a slight decrease of 2 basis points from the first quarter of 2025 [2][17] - The bank's non-interest income grew by 25.00% year-on-year, contributing to the overall revenue structure [2][21] Financial Performance - In the first half of 2025, Minsheng Bank achieved an operating income of approximately 72.384 billion yuan, with net interest income accounting for 67.97% of total revenue [2][13] - The bank's total interest-earning assets reached 7.39 trillion yuan, reflecting a year-on-year growth of 2.75% [4][22] - The non-performing loan ratio stood at 1.48%, with a slight increase of 2 basis points compared to the previous quarter [4][27] Asset and Liability Structure - As of the first half of 2025, the bank's interest-bearing liabilities amounted to 6.67 trillion yuan, showing a year-on-year increase of 1.38% [4][26] - The composition of interest-bearing liabilities included deposits (64.64%), bond issuance (15.75%), and interbank liabilities (15.85%) [4][26] - The bank's provision coverage ratio was 145.1%, indicating a strong buffer against potential loan losses [4][27] Profitability Forecast - The report forecasts a decline in net profit attributable to shareholders for 2025, with expected growth rates of -2.06%, +1.48%, and +2.69% for the years 2025 to 2027 [5][7]

Core Viewpoint - The core viewpoint of the article emphasizes that despite facing challenges in retail lending and a slight increase in risk, China Merchants Bank (招商银行) maintains a stable overall asset quality and is committed to its strategic direction in retail banking and international expansion [1][6][9]. Financial Performance - In the first half of 2025, China Merchants Bank reported operating income of 169.92 billion yuan, a year-on-year decrease of 1.72%, and a net profit of 74.93 billion yuan, a year-on-year increase of 0.25% [2]. - The bank's non-performing loan (NPL) ratio stood at 0.93%, a decrease of 0.02 percentage points from the end of the previous year [2]. Retail Banking Insights - Retail banking contributed 58.53% to pre-tax profit, up from 57.1% in the same period last year, with retail assets under management (AUM) reaching 16 trillion yuan [7]. - The NPL ratio in retail banking increased by 0.07 percentage points to 1.03%, reflecting broader industry challenges [7]. - The bank's retail strategy focuses on three pillars: technological capabilities, team development, and core values [7][8]. Internationalization Strategy - The bank's management highlighted the necessity of internationalization as a response to market trends and pressures, aiming to enhance its global presence and service capabilities [10][11]. - The internationalization strategy is seen as essential for overcoming domestic market limitations and adapting to the evolving financial landscape [11][12]. Net Interest Margin Trends - As of June 2025, the net interest margin (NIM) was reported at 1.88%, a year-on-year decrease of 12 basis points [14]. - The bank's NIM remains above the industry average of 1.42%, indicating a competitive position despite the downward pressure on margins [16]. - Factors influencing NIM include the downward trend in loan pricing and the bank's strategy to manage deposit costs effectively [16][17]. Corporate Banking Focus - The corporate banking division is focusing on four key areas: technology enterprises, industry consolidation, supply chain financing, and inclusive finance [19][21]. - The bank aims to leverage its strengths in digital technology to enhance service offerings and maintain a low NPL ratio in corporate lending [19].

Investment Rating - The report maintains a "Buy" rating for the company [7] Core Views - The company has shown significant improvement in revenue growth, with a 2.15% year-on-year increase in revenue for the first half of 2025, and a 7.55 percentage point increase in growth rate compared to the first quarter [2][12] - Non-interest income has performed well, with a 19.64% year-on-year increase, contributing to a more favorable revenue structure [3][20] - The asset quality has steadily improved, with a non-performing loan ratio of 1.33% as of the first half of 2025, remaining stable compared to the previous quarter [26][28] Summary by Sections Revenue Performance - In the first half of 2025, the company achieved approximately 394.27 billion yuan in revenue, a 2.15% year-on-year increase, with net interest income at 286.71 billion yuan (down 3.16% YoY) and non-interest income at 107.56 billion yuan (up 19.64% YoY) [2][12] - The net interest margin recorded at 1.4%, slightly down by 1 basis point from the first quarter of 2025 [15] Asset and Liability Management - As of the first half of 2025, the total interest-earning assets amounted to 43.54 trillion yuan, a 9.55% increase from the end of 2024, with loans growing by 7.90% [21][24] - The total interest-bearing liabilities reached 39.47 trillion yuan, reflecting an 11.06% year-on-year growth [24] Non-Interest Income - The company reported net fee and commission income of 65.22 billion yuan, up 4.02% YoY, and net investment income of 27.91 billion yuan, up 217.29% YoY, accounting for 7.08% of total revenue [3][20] Asset Quality - The non-performing loan ratio stood at 1.33%, with a provision coverage ratio of 239.4% as of the first half of 2025, indicating a stable asset quality [26][28] - The report highlights improvements in the non-performing loan ratios across various sectors, particularly in manufacturing and wholesale and retail [27]

Core Viewpoint - The overall performance of A-share listed banks in the first half of 2025 shows a significant recovery, with operating income and net profit attributable to shareholders both turning positive compared to the first quarter, supported by growth in non-interest income [1][3]. Financial Performance - A total of 42 A-share listed banks achieved operating income exceeding 2.9 trillion yuan and net profit attributable to shareholders exceeding 1.1 trillion yuan in the first half of 2025 [2]. - More than half of the banks reported growth in both operating income and net profit. Jiangyin Bank and Changshu Bank achieved double-digit year-on-year growth in both metrics [2]. - Jiangyin Bank reported operating income of 2.401 billion yuan, a year-on-year increase of 10.45%, and net profit of 846 million yuan, up 16.63%. Non-interest income, particularly investment income, significantly contributed to this growth [2]. - Changshu Bank reported operating income of 6.062 billion yuan, a year-on-year increase of 10.10%, and net profit of 1.969 billion yuan, up 13.51%. The bank's strong performance was also driven by substantial growth in non-interest income, particularly from fees and commissions [2]. Net Interest Margin Trends - The decline in net interest margin is stabilizing, with banks acknowledging ongoing pressure but expecting the rate of decline to narrow [4]. - The president of Citic Bank noted that while asset prices remain low, the replacement of high-yield loans will continue to exert downward pressure on net interest margins [4]. - The CFO of China Construction Bank indicated that the impact of previous interest rate adjustments has a lag effect, but improvements in monetary policy are expected to help stabilize net interest margins [4]. Anti-Competition Measures - Banks are implementing anti-competition measures to address excessive competition in loan pricing and deposit rates, which is seen as beneficial for both corporate health and asset quality [5][6]. - The general manager of the financial department at Industrial Bank highlighted that these measures present both opportunities and challenges, with a reduction in harmful competition observed in recent months [5]. - Long-term, these anti-competition initiatives are expected to improve supply-demand relationships, enhance corporate profitability, and direct financial resources towards high-end manufacturing and green economy sectors [5].

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]