Core Viewpoint - The low interest rate environment is significantly impacting the banking industry in China, leading to a potential restructuring of the competitive landscape. China Merchants Bank (CMB) is taking various strategic measures to navigate these challenges, including accelerating internationalization, enhancing comprehensive services, leveraging AI for smart banking, and improving management and risk control [1][2]. Group 1: Impact of Low Interest Rates - The one-year and five-year Loan Prime Rates (LPR) in China have been cumulatively reduced by 70 basis points and 105 basis points from 2022 to 2024, respectively [2]. - As a result, the net interest margin for the banking sector has declined to 1.42% in Q2 of this year, putting pressure on revenue and profit growth, as net interest income accounts for over 70% of bank revenues [2]. - The low interest rate scenario is described as the biggest "gray rhino" for the Chinese banking industry, with historical precedents from Europe, the US, Japan, and Taiwan indicating that prolonged low rates can lead to significant operational difficulties for banks [2]. Group 2: Internationalization Strategy - CMB is accelerating its internationalization to adapt to the growing demand for financial services as Chinese enterprises expand overseas. The bank aims to diversify its revenue sources beyond the low-interest domestic market [5][6]. - CMB has established a global presence with branches in major financial centers such as Hong Kong, Singapore, New York, and London, and is leveraging these platforms to enhance its multi-currency operations [6]. - The bank's international business has shown significant growth, with total assets and operating income from its Hong Kong institutions increasing by 9.49% and 25.28%, respectively, in the first half of 2025 [6]. Group 3: Comprehensive Business Development - CMB has been expanding its financial licenses, recently obtaining a Financial Asset Investment Company (AIC) license, which enhances its comprehensive business model [12][13]. - The bank's subsidiaries are performing well, with total assets of major subsidiaries growing by 9% year-on-year, indicating an upward trend in its overall competitive capability [12]. - CMB is focusing on providing integrated services across various business lines to enhance customer loyalty and achieve diversified revenue streams [13]. Group 4: Differentiated Competitive Strategy - CMB emphasizes differentiation in a highly competitive banking environment, aiming to create a unique value proposition through innovation and specialized services [15]. - The bank's retail customer base has reached 216 million, with retail assets under management surpassing 16 trillion yuan, reflecting its strong performance in retail banking [15][16]. - CMB is also investing in key regional branches to enhance its presence in economically vibrant areas, which is expected to drive further growth [17]. Group 5: AI and Digital Transformation - CMB is committed to becoming a smart bank by leveraging AI technologies to enhance service delivery and operational efficiency [19][20]. - The bank has developed a comprehensive AI technology framework, with 184 application scenarios across various functions, resulting in significant labor hour savings [19][21]. - CMB's historical focus on technology adoption positions it well to capitalize on the ongoing AI competition in the banking sector [20]. Group 6: Management and Cost Control - In response to the low interest rate environment, CMB is shifting towards more refined management practices, emphasizing cost control and operational efficiency [22][24]. - The bank has implemented strict cost management measures, resulting in a decrease in business and management expenses over the past two years [22]. - CMB maintains a strong focus on risk management, with a non-performing loan ratio of 0.93% and a provision coverage ratio of 410.93%, indicating robust risk management capabilities [24].

Group 1: Core Activities and Promotions - The "Let Beauty Happen" campaign by Postal Savings Bank of China aims to enhance service experience and provide diverse financial solutions starting from May 10 [2] - The campaign includes themed activities around debit cards, credit cards, mobile banking, digital RMB, and small loans to meet varied customer needs [2] - Customers can enjoy exclusive discounts, limited-time gifts, and thoughtful services during the campaign [2] Group 2: Customized Services - Postal Savings Bank offers customized debit cards that allow customers to print personal images, enhancing the payment experience [3] - The Mastercard debit card provides convenient and favorable cross-border payment experiences, with partnerships established with over 100,000 merchants in more than 50 countries [4] Group 3: Debit Card Promotions - The bank has launched a "First Binding Discount" campaign for debit card users, covering popular platforms like Douyin, JD.com, Pinduoduo, and Qunar [6][7] - Customers can enjoy a 5 yuan discount for their first binding on any of the mentioned platforms, applicable to various online payment scenarios [7] Group 4: Salary Card Services - The bank has introduced the "Salary Enjoy Series" of exclusive financial products for salary clients, including high-yield fixed deposits and flexible wealth management options [9][10] - The exclusive fixed deposit offers a maximum annual interest rate of 1.5%, ensuring capital protection [9] Group 5: Investment Products - Postal Savings Bank offers "Postal Gold" products with quality assurance and competitive pricing, catering to various investment and gifting needs [12] - The investment gold bars are priced at the base gold price plus 15 yuan per gram, with jewelry priced at a premium of 100-110 yuan per gram [12] Group 6: Fund Distribution Services - The bank's fund distribution service has improved, offering a wide range of fund products with low fees and quick transaction times [14] - The buying fee rate can be as low as 10%, and redemption for public funds is processed within one day [14] Group 7: Credit Services - The "Postal Enjoy Score" credit assessment system provides personalized financial benefits and service upgrades based on multi-dimensional credit evaluations [15] - Customers participating in the score assessment can receive loan rate discount coupons and enter surprise gift draws [16] Group 8: Digital Currency and Mobile Banking - Postal Savings Bank's digital RMB wallet offers discounts for retail purchases in pilot areas, enhancing the consumer experience [20] - The bank's mobile banking app has been upgraded to version 10.0, focusing on personalized and intelligent financial services [22] Group 9: Small Loan Services - The bank provides small loan services tailored for farmers, individual business owners, and small enterprises, with credit loans up to 3 million yuan and mortgage loans up to 10 million yuan [23] - The loan products are designed to meet customer needs with flexible repayment options [23]