Core Viewpoint - The core viewpoint of the article is that China Merchants Bank (CMB) emphasizes maintaining stability and reducing volatility in risk assets, with a target growth rate of around 9% to 10% for risk assets in 2025, while also being adaptable to external environmental changes [1][2]. Risk Asset Growth Factors - The growth of risk assets in 2025 is influenced by several factors: - The transition to new capital regulations in 2024 will create a noticeable capital saving effect, establishing a lower baseline, which is a one-time factor [1][3]. - As retail loans face pressure, the proportion of corporate loans increases, which have a higher risk weight, thereby raising the growth rate of risk assets [3]. - CMB plans to leverage its strong capital position to support low-risk off-balance-sheet businesses, such as bill discounting and letter of credit negotiation, which can generate good returns while consuming risk assets [3][4]. - Increased efforts in bond investments will also contribute to a rise in market risk assets [4]. Capital Adequacy Ratio Insights - The decline in capital adequacy ratio last year was primarily due to one-time factors, including a 25 billion yuan mid-term dividend increase, which reduced capital [4][5]. - Market fluctuations also impacted the capital adequacy ratio through the volatility of CMB's bond OCI accounts [4]. - As the capital adequacy ratio base increases and profit growth pressures mount, maintaining continuous capital improvement becomes more challenging [5]. - CMB aims to balance capital, risk, profitability, and business development to achieve relative stability, focusing on the relationship between capital, ROE, and dividends [5].