Core Viewpoint - The report highlights the financial performance and strategic initiatives of China Postal Savings Bank for the third quarter of 2025, emphasizing its commitment to high-quality development and risk management while achieving growth in both revenue and net profit [16][25]. Financial Performance - For the first nine months of 2025, the bank achieved operating income of RMB 265.08 billion, an increase of 1.82% year-on-year, and net profit of RMB 76.79 billion, up 1.07% year-on-year [25]. - The annualized return on total assets was 0.58%, and the annualized weighted average return on equity was 10.67% [25]. - Interest income for the same period was RMB 210.51 billion, a decrease of 2.07% year-on-year, while net interest margin remained at 1.68% [26]. - Non-interest income, including fees and commissions, increased by 11.48% to RMB 23.09 billion, and other non-interest income rose by 27.52% to RMB 31.48 billion [27][28]. - Operating expenses decreased by 2.66% to RMB 152.17 billion, reflecting effective cost management [29]. Asset Quality and Capital Adequacy - As of the end of September 2025, the bank's total assets reached RMB 18.61 trillion, a year-on-year increase of 8.90% [31]. - The total customer loans amounted to RMB 9.66 trillion, with a year-on-year growth of 8.33% [31]. - The non-performing loan ratio stood at 0.94%, with a slight increase of 0.04 percentage points from the previous year [34]. - The core tier one capital adequacy ratio was 10.65%, up 1.09 percentage points from the previous year, indicating a solid capital position [34]. Strategic Initiatives - The bank is focused on enhancing its asset-liability management and has seen a 17.91% increase in corporate loans, reflecting its commitment to supporting the real economy [17]. - The bank is actively pursuing a transformation towards a more diversified and sustainable growth model, with a focus on non-interest income and risk management [18][19]. - The bank has implemented various initiatives to optimize financial supply and ensure that policy benefits reach market entities effectively [20]. - The bank's retail assets under management (AUM) reached RMB 17.89 trillion, growing over 7% year-on-year, indicating strong customer engagement [20]. Shareholder Information - As of the report date, the total number of ordinary shareholders was 142,576, with significant holdings by the controlling shareholder, China Postal Group [12]. - The bank plans to distribute a mid-term cash dividend of RMB 1.230 per share, totaling approximately RMB 14.77 billion [38].

Core Viewpoint - The performance of China Merchants Bank (CMB) in 2024 is characterized by "stability, progress, and quality," with analysts maintaining a "buy" rating, although investors have mixed feelings depending on their focus on high dividends or growth potential [1][2]. Financial Performance - In 2024, CMB achieved operating revenue of 3375 billion yuan, a year-on-year decrease of 0.48%, while net profit attributable to shareholders reached 1484 billion yuan, an increase of 1.22%, marking two consecutive years of profit growth without revenue growth [1][3]. - Total assets exceeded 12 trillion yuan, and deposits surpassed 9 trillion yuan, both growing by over 10% year-on-year [1]. - The bank proposed a cash dividend of 2 yuan per share, totaling over 500 billion yuan, with a dividend payout ratio of 35.32%, leading the industry [1][15]. Revenue Composition - Net interest income decreased by 1.58% to 2112.77 billion yuan, while non-interest income grew by 1.41% to 1262.11 billion yuan, accounting for 37.40% of total revenue [4]. - Investment income rose by 34.74% to 298.80 billion yuan, and fair value changes contributed an additional 60.85 billion yuan, reflecting a significant increase of 229.63% [6][7]. Cost Management - CMB focused on cost reduction, with operating expenses decreasing by 2.46% to 1584.69 billion yuan, and employee costs down by 3.21% [8][9]. - The average salary per employee fell to 582,600 yuan, a decline of 4.96% from the previous year, marking the third consecutive year of salary reductions [9]. Retail Banking Strategy - 2024 marked the 20th anniversary of CMB's retail banking strategy, with retail banking revenue reaching 1968.35 billion yuan, a growth of 1.29%, although pre-tax profit declined by 9.28% [10][11]. - The number of retail customers increased to 210 million, with high-net-worth clients also growing significantly [11]. Loan and Deposit Growth - Retail customer deposits reached 3.83 trillion yuan, up 15.43% year-on-year, while retail loans grew by 6.06% to 3.58 trillion yuan [13][14]. - Consumer loans saw the highest growth rate at 31.38%, while credit card transactions declined by 8.23% [14]. Market Position and Dividend Policy - CMB's dividend policy remains robust, with a proposed payout ratio of 35.32%, reflecting its commitment to shareholder returns [15][16]. - The return on equity (ROE) fell to 14.49%, the lowest in 20 years, attributed to low interest rates and competitive pressures [15][17].

Core Viewpoint - The banking industry in China is transitioning from a phase of rapid growth to one focused on resilience and high-quality development, with a notable emphasis on value creation despite ongoing challenges in the economic environment [1][4]. Group 1: Operating Performance - The banking sector is experiencing a trend of "low interest rates, low spreads, low profitability, and high risks," with the net interest margin for commercial banks dropping to a historical low of 1.52% by the end of 2024 [2]. - Despite facing significant pressures, China Merchants Bank (CMB) reported a net interest margin of 1.98% and a year-on-year net profit growth of 1.22%, significantly outperforming industry averages [2]. - CMB's asset quality remains strong, with a non-performing loan ratio of 0.95%, well below the industry average of 1.5% [2]. Group 2: Retail Banking Strategy - CMB's retail banking strategy, established 20 years ago, continues to be a cornerstone of its operations, with over 200 million retail customers and total managed assets nearing 15 trillion yuan [3]. - The bank's retail financial products have seen substantial growth, with retail wealth management product balances increasing by 12.38% to 3.93 trillion yuan [3]. - CMB has introduced innovative products and services, such as the "TREE Long-term Profit Plan," which quickly raised over 6 billion yuan in just ten trading days [3]. Group 3: Long-term Strategy and Resilience - CMB's management emphasizes the importance of long-term value creation over short-term gains, with a focus on maintaining core competitive advantages through high-quality customer service and technological investment [5][12]. - The bank's strategic approach includes a commitment to "four transformations": internationalization, comprehensive services, differentiation, and digital intelligence [7][10]. - CMB aims to enhance its global service capabilities to support Chinese enterprises' international expansion while leveraging technology to improve operational efficiency and customer experience [8][10]. Group 4: Financial Health and Risk Management - CMB maintains a strong financial position with a non-performing loan ratio consistently below 1% and a provision coverage ratio exceeding 400% [11]. - The bank's ability to manage low-cost liabilities and maintain a high net interest margin supports its financial stability [11]. - CMB's focus on enhancing its operational capabilities, including risk management and strategic execution, positions it well to navigate the challenges of a low-interest-rate environment [11][12].