Core Viewpoint - Despite industry challenges such as narrowing net interest margins and slowing profit growth, China Merchants Bank (CMB) reported a 0.25% increase in net profit for the first half of 2025, demonstrating operational resilience in a complex environment [2][4]. Financial Performance - CMB achieved operating income of 169.97 billion yuan in the first half of 2025, a year-on-year decrease of 1.72% [2]. - The bank's net profit attributable to shareholders reached 74.93 billion yuan, reflecting a slight increase of 0.25% year-on-year [2]. - The bank's return on assets (ROA) and return on equity (ROE) were 1.21% and 13.85%, respectively, both showing a decline compared to the previous year [4]. Revenue Structure - Net interest income for the first half was 106.09 billion yuan, up 1.57% year-on-year, while non-interest income was 63.84 billion yuan, down 6.77% [3]. - Wealth management income showed strong recovery, with "big wealth management income" increasing by 5.45% to 20.86 billion yuan, marking the highest growth rate in nearly three years [3][9]. Asset Quality - As of June 30, 2025, CMB's non-performing loan balance was 66.37 billion yuan, with a non-performing loan ratio of 0.93%, a slight decrease from the end of the previous year [5]. - The provision coverage ratio stood at 410.93%, down 1.05 percentage points from the end of the previous year [5]. Net Interest Margin - CMB's net interest margin was 1.88%, down 0.12 percentage points year-on-year, but still above the industry average by 46 basis points [6]. - The bank's average cost of customer deposits was 1.26%, significantly lower than the industry average [6]. Retail Business Resilience - CMB's total assets under management (AUM) for retail customers exceeded 16 trillion yuan, a 7.39% increase from the beginning of the year [9]. - Retail customer deposits reached 4.02 trillion yuan, up 4.99% from the end of the previous year [9]. - The number of retail customers grew to 216 million, a 2.86% increase year-on-year [10].

Core Viewpoint - The key highlight from the mid-year performance meeting of China Merchants Bank is the significant growth in wealth management income, despite challenges in credit card revenue and other non-interest income sources [1] Group 1: Wealth Management and Income - The wealth management income has been identified as the biggest highlight for the first half of the year [1] - Credit card transaction volume exceeded 2 trillion yuan, but experienced a negative growth of 8.3% compared to last year [1] - The market share of credit card transactions increased by 0.3 percentage points [1] Group 2: Non-Interest Income Challenges - Other non-interest net income faced a decline of over 12% [1] - The decline in non-interest income is primarily attributed to financial market trading [1] - Although long and short-term interest rates decreased in the second quarter, short-term rates remain high [1]