Core Viewpoint - Xiamen Bank reported a slight increase in operating income for 2024 but a decline in net profit, indicating challenges in the current banking environment and a need for strategic transformation [1][2]. Financial Performance - In 2024, Xiamen Bank achieved operating income of 5.759 billion yuan, a year-on-year increase of 2.79%, while net profit attributable to shareholders was 2.595 billion yuan, a decrease of 2.6% [1]. - The Q1 2025 report showed a decline in both operating income and net profit, with operating income at 1.214 billion yuan and net profit at 645 million yuan [2]. - Investment income decreased by 203 million yuan compared to the same period last year, contributing to the overall revenue decline [2]. Interest Income and Margin - Net interest income fell by 46 million yuan year-on-year due to a narrowing interest margin, which is critical as it accounts for over 70% of the bank's operating income [3]. - The bank's deposit cost rate decreased to 2.15%, down 30 basis points from the previous year, indicating efforts to manage costs amid a challenging interest rate environment [3]. Loan and Deposit Growth - As of the end of Q1, total loans and advances reached 210.578 billion yuan, a growth of 2.49% from the end of the previous year, while total deposits increased by 3.37% to 221.376 billion yuan [3]. - The bank's management anticipates that overall revenue and profit will reach a low point in Q1 before gradually improving throughout the year [3]. Strategic Focus on Taiwan Market - Xiamen Bank aims to strengthen its position as a model bank for cross-strait financial cooperation, with a significant increase in the number of Taiwanese enterprise clients and their contributions to deposits [4]. - The bank plans to explore targeted financial services for Taiwanese agricultural entrepreneurs and support mergers and acquisitions as many Taiwanese enterprises transition to the next generation [5]. - The strategy includes expanding supply chain finance services to a broader range of Taiwanese clients beyond Fujian and Chongqing [5].