Group 1: Financial Performance - The bank's net interest margin at the end of Q1 2025 was 1.34%, a decrease of 4 basis points compared to the end of 2024, which is better than the industry average [1] - The bank aims to manage interest margins proactively through reasonable growth in volume and effective quality improvements [1] - The bank's fee and commission income showed good growth in Q1 2025, with plans to expand sources of non-interest income through wealth management and new business initiatives [2] Group 2: Capital Adequacy - As of the end of Q1 2025, the bank's core Tier 1 capital adequacy ratio was 9.80%, Tier 1 capital adequacy ratio was 11.62%, and total capital adequacy ratio was 14.54%, all meeting regulatory requirements [2] - The successful conversion of nearly 5 billion RMB in convertible bonds has strengthened the bank's capital base, supporting business development [2] - The bank will continue to optimize its business structure and enhance capital management to improve capital efficiency and risk resilience [2] Group 3: Investor Relations - The investor relations activity involved thorough communication between the company's representatives and investors, adhering to regulations without disclosing any undisclosed significant information [2]

Core Viewpoint - The company reported a decline in revenue, PPOP, and net profit for Q1 2025, with year-on-year growth rates of -3.18%, -2.24%, and -2.44% respectively, indicating a significant slowdown compared to the previous year [1] Group 1: Performance Highlights - The company experienced accelerated asset expansion, with total interest-earning assets growing by 15.29% year-on-year as of Q1 2025, an increase of 3.87 percentage points compared to the end of 2024 [2] - Loan growth for Q1 2025 was 10.38% year-on-year, with a quarter-on-quarter increase of 0.73 percentage points [2] - Financial investment scale increased by 19.97% year-on-year, with a quarter-on-quarter improvement of 7.21 percentage points, despite a decrease of 8 billion in AC scale [2] - Deposit growth was robust, with a year-on-year increase of 19.11% in Q1 2025, reflecting a recovery trend since 2024, and a single-quarter deposit increment of 150.5 billion, which is 40.1 billion more than the previous year [2] Group 2: Income and Asset Quality - The company’s net fee and commission income rose by 24.42% year-on-year in Q1 2025, marking a significant increase of 32.25 percentage points compared to the previous year [2] - Retail business transformation strategies led to a rapid increase in retail customer numbers and retail AUM, reaching 31 million and 12.6 trillion respectively, with year-on-year growth rates of 5.36% and 13.84% [2] - The non-performing loan ratio slightly decreased to 1.30% as of Q1 2025, showing a marginal improvement from the previous quarter [3] - The new non-performing loan generation rate was 0.94%, down 3 basis points from the previous year, indicating easing pressure on asset quality [3] Group 3: Challenges and Outlook - Other non-interest income declined by 17.67% year-on-year in Q1 2025, a drop of 33.06 percentage points compared to the previous year, primarily due to adjustments in the bond market [3] - The net interest margin was under pressure, with a quarterly decline of 14 basis points to 1.29%, as the decrease in asset yield outpaced the reduction in liability cost [3] - The company is advised to be actively monitored due to its deepening presence in Beijing, accelerated asset scale expansion, significant deposit growth, strong performance in fee income, and stable asset quality [3]