Core Viewpoint - The banking industry is facing challenges such as narrowing interest margins, difficulties in retail transformation, and the need to expand non-interest income. CITIC Bank is adapting its strategies to navigate these issues and seek breakthroughs in its operations [1][2]. Interest Margin Management - Interest margin is a critical indicator for banks, directly impacting profitability and sustainability. The average net interest margin for Chinese commercial banks was 1.42% in Q2 2025, below the warning line [1]. - CITIC Bank's net interest margin was 1.63% in H1 2025, 21 basis points above the industry average, with a year-on-year decline of 14 basis points, indicating a slowing rate of decrease [2][3]. - The bank aims to optimize its asset-liability structure and maintain a relative advantage in interest margin management by supporting credit issuance and optimizing deposit structures [3]. Retail Transformation Strategy - CITIC Bank is committed to its "Retail First" strategy, focusing on optimizing asset, liability, and customer structures. The bank's retail loan AUM ranks second in the industry [4]. - The revenue contribution structure is balanced at 40% from corporate, 40% from retail, and 20% from financial markets, allowing the bank to mitigate risks from any single business line [4]. Non-Interest Income Expansion - CITIC Bank achieved non-interest income of 34.56 billion yuan in H1 2025, showing a year-on-year decline but a quarter-on-quarter improvement. Fee income grew over 6%, outpacing peers for five consecutive years [6]. - The bank plans to further enhance non-interest income by focusing on wealth management, capital markets, and cross-border financial services [6].