Core Viewpoint - CITIC Bank reported a mixed performance for the first half of 2025, with a slight decline in revenue but an increase in net profit, driven by improved non-interest income and stable asset quality [1][2]. Financial Performance - The bank achieved a revenue of 105.76 billion RMB, a year-on-year decrease of 3.0%, with the decline narrowing by 0.7 percentage points compared to Q1 2025 [1]. - The net profit attributable to shareholders was 36.48 billion RMB, reflecting a year-on-year increase of 2.8%, with growth accelerating by 1.1 percentage points from Q1 2025 [1]. - The net interest margin stood at 1.63%, down 14 basis points year-on-year [2]. Income Sources - Net interest income was 71.20 billion RMB, down 1.9% year-on-year, primarily impacted by a decrease in net interest margin [2]. - Non-interest income showed signs of recovery, with net fee and commission income increasing by 3.4% year-on-year to 16.91 billion RMB, benefiting from the bank's focus on wealth management and comprehensive financing [2]. - Other non-interest income decreased by 12.0% year-on-year to 17.66 billion RMB, but the decline was significantly less than the 26.6% drop in Q1 2025, aided by improved bond market performance [2]. Loan Growth and Quality - As of the end of H1 2025, the loan balance reached 5.8019 trillion RMB, a year-on-year increase of 3.7%, with general loans (excluding bills) growing by 6.3% [2][3]. - Corporate loans increased by 317.5 billion RMB, a growth of 10.9% since the beginning of the year, with significant increases in green credit, manufacturing, and small micro-enterprises [3]. - The non-performing loan (NPL) ratio remained stable at 1.16% [2][4]. Asset and Liability Management - The bank's asset yield decreased to 3.33%, down 50 basis points year-on-year, while the cost of interest-bearing liabilities improved to 1.73%, down 39 basis points [4]. - The bank's net interest margin continues to lead among peers, with expectations of a narrowing in the future due to competitive pressures [4]. Dividend Policy - CITIC Bank plans to distribute a cash dividend of 1.88 RMB per share, totaling 10.461 billion RMB, which represents 30.7% of the net profit attributable to shareholders, slightly up from 30.5% in 2024 [5]. - The bank aims to enhance investor confidence and stabilize return expectations through this increased dividend payout [5]. Future Outlook - The bank is expected to maintain steady growth, leveraging its comprehensive financial ecosystem and focusing on both corporate and retail banking [5]. - Projected net profits for 2025-2027 are 70.678 billion RMB, 73.590 billion RMB, and 77.462 billion RMB, reflecting year-on-year growth rates of 3.1%, 4.1%, and 5.3% respectively [5].