Core Viewpoint - The net interest margin of Chinese commercial banks has decreased to 1.42% by mid-2025, indicating a need for transformation as traditional profit models based on interest rate spreads are no longer sustainable [1] Group 1: Business Transformation - Ping An Bank is focusing on listed companies and optimizing its business structure to explore differentiated development paths [1] - The bank has introduced a "commercial bank + investment bank + investment" integrated service model to create a financial service ecosystem that resonates with corporate growth [2] - As of June 2025, the number of new clients from listed companies at Ping An Bank has increased by 6% compared to the beginning of the year, with steady growth in asset scale, deposits, and loans [2] Group 2: Product Transformation - The implementation of asset management regulations has fundamentally reshaped the investment banking business of commercial banks, requiring a shift towards "on-balance sheet" and "standardized" business [3] - Ping An Bank is focusing on the core of its investment banking products, particularly in merger and acquisition loans, which have seen a compound annual growth rate of nearly 30% since 2020 [3] Group 3: Risk Control Philosophy Transformation - The traditional credit approval process relied heavily on land and government credit, but this has weakened due to fluctuating real estate prices and local government debt issues [5] - Ping An Bank is shifting its risk control philosophy towards in-depth industry research and value exploration, enhancing its operational performance through a collaborative approach between commercial and investment banking [5] - The bank's risk control transformation emphasizes two dimensions: deep exploration of intrinsic industry value and leveraging comprehensive financial advantages through partnerships with investment institutions [5]