Core Viewpoint - The key variable affecting bank revenue growth in the first half of 2025 is the decline in liability costs, which has become the main driving force, while the growth of interest-earning assets is slowing down and non-interest assets are showing differentiation [1]. Group 1: Revenue Growth Factors - The growth of interest-earning asset scale remains a crucial support for revenue growth, with large banks weakening and medium and small banks strengthening [1]. - The decline in interest-bearing liability costs has emerged as a new driving force for bank revenue growth, with a significant reduction from 0.02-0.09 percentage points in the first half of 2024 to 0.3-0.4 percentage points in the first half of 2025 [2]. - Non-interest assets have provided significant support for revenue growth among state-owned large banks [1]. Group 2: Interest-Earning Asset Performance - The growth of non-loan assets, particularly in medium and small banks, has driven the overall growth of interest-earning asset scale, while large banks have seen declines in both loan and non-loan interest-earning asset growth [2]. - The decline in interest-earning asset yields has not been alleviated, with a further increase in the year-on-year decline compared to the same period in 2024, particularly among state-owned large banks, joint-stock banks, and city commercial banks [2]. Group 3: Non-Interest Income and Investment Revenue - The total proportion of non-interest income continues to rise, with investment income accounting for an increasing share of operating income in the first half of 2025, averaging 7.7% for state-owned large banks and around 18% for joint-stock and city commercial banks, reflecting a 2-3 percentage point increase from 2024 [3]. - The consumption of floating profits in OCI accounts has accelerated, with significant declines in fair value changes across all types of banks compared to 2024 [3]. Group 4: Asset Quality and Provisioning - The overall non-performing loan ratio for tail-end rural commercial banks continues to rise, while the non-performing loan ratios for medium and large banks are steadily declining [4]. - The provisioning efforts among various banks show differentiation, with a general decline in provisioning rates, indicating adjustments in provisioning pace under operational pressure [4]. - The capital adequacy ratios have shown seasonal declines for most banks except for state-owned large banks, which have benefited from capital replenishment policies [4].

Core Insights - The performance of nine A-share joint-stock banks in the first half of 2025 is analyzed against a backdrop of a complex external economic environment and increasing industry competition [1] Financial Performance - As of the end of the first half of 2025, the total asset scale of the nine A-share joint-stock banks reached approximately 71.55 trillion yuan [1] - The combined revenue for the first half of the year amounted to about 763.2 billion yuan, while the net profit attributable to shareholders totaled approximately 274.3 billion yuan [1] Asset Quality - Four of the banks reported a decrease in non-performing loan ratios compared to the beginning of the year [1] Dividend Plans - Ping An Bank and Huaxia Bank announced mid-term dividend plans in their semi-annual reports to better reward investors [1] - Several other joint-stock banks indicated intentions to further increase their dividend payout ratios, with specific mid-term dividend plans to be announced later [1]