Core Viewpoint - The performance of nine A-share listed joint-stock banks in the third quarter of 2025 shows a mixed picture, with seven banks experiencing a year-on-year decline in operating income and five banks seeing a drop in net profit. Only Shanghai Pudong Development Bank achieved growth in both metrics [1][2]. Financial Performance - Among the nine banks, only Shanghai Pudong Development Bank and Minsheng Bank reported year-on-year growth in operating income, while four banks, including China Merchants Bank and Industrial Bank, saw an increase in net profit [2][3]. - China Merchants Bank led in operating income with CNY 251.42 billion, followed by Industrial Bank and CITIC Bank with CNY 161.23 billion and CNY 156.60 billion, respectively. Zhejiang Commercial Bank ranked last with CNY 48.93 billion [2]. - Minsheng Bank recorded the highest operating income growth rate at 6.74%, while Ping An Bank experienced the most significant decline at -9.78% [2]. Net Profit Analysis - China Merchants Bank maintained the highest net profit at CNY 113.77 billion, with a slight increase of 0.52%. Shanghai Pudong Development Bank saw a notable increase of 10.21% in net profit [3]. - The only bank to achieve growth in both operating income and net profit was Shanghai Pudong Development Bank, which reported a 1.88% increase in operating income [3]. Interest Income and Net Interest Margin - Six banks reported a year-on-year decline in net interest income, with the overall industry facing pressure on net interest margins, although the rate of decline has narrowed [4][6]. - China Merchants Bank led in net interest income with CNY 160.04 billion, showing a 1.74% increase, while Ping An Bank faced the largest decline at -8.25% [5][6]. Asset Quality - The asset quality of the banks showed mixed results, with five banks reporting a decline in non-performing loan (NPL) ratios, while three banks saw an increase [7][9]. - China Merchants Bank maintained the best asset quality with an NPL ratio of 0.94%, while Ping An Bank's NPL ratio was 1.05% [8][9]. Retail and Corporate Loan Trends - The third quarter of 2025 revealed a shift in loan structure, with corporate loans expanding while retail loans showed weakness. Three banks reported negative growth in retail loans [10][12]. - Among the banks, only Shanghai Pudong Development Bank, China Merchants Bank, and CITIC Bank saw growth in personal loans, while others experienced declines [11][12]. Retail Asset Under Management (AUM) - Several banks reported strong growth in retail AUM, with China Merchants Bank managing CNY 16.60 trillion in retail customer assets, an increase of 11.19% [12][14]. - Shanghai Pudong Development Bank's retail AUM reached CNY 4.62 trillion, reflecting a growth of 19.07% [13].

Core Viewpoint - The report highlights that corporate loans continue to drive the growth of bank credit, significantly outpacing retail loans in the first three quarters of 2025, with state-owned banks showing a notable increase in corporate lending compared to retail lending [1][5][11]. Group 1: State-Owned Banks Performance - Among state-owned banks, Agricultural Bank of China leads in personal loan size at 93,333.07 million yuan, with a growth of 5.89% compared to the end of the previous year [3][5]. - Postal Savings Bank shows a remarkable increase in corporate loans, with a growth rate of 17.91%, while its personal loans grew by only 1.90% [5][7]. - The overall trend indicates that personal loan growth is lagging behind corporate loan growth, with only Agricultural Bank exceeding a 5% increase in personal loans among the major banks [5][11]. Group 2: Joint-Stock Banks Performance - Several joint-stock banks, including Minsheng Bank, Industrial Bank, and Ping An Bank, reported negative growth in retail loans, while their corporate loans continued to grow positively [1][11]. - For instance, Ping An Bank's personal loans decreased by 2.10% to 17,291.92 million yuan, while its corporate loans saw a decline in bad debt rates [11][12]. - In contrast, China Merchants Bank reported a retail loan balance of 36,966.19 million yuan, with a modest growth of 1.43%, but its corporate loans grew significantly [9][13]. Group 3: Retail Asset Under Management (AUM) - Despite the challenges in retail loan growth, several banks reported strong growth in retail AUM. For example, China Merchants Bank's retail AUM reached 16.6 trillion yuan, growing by 11.19% [1][15]. - Shanghai Pudong Development Bank also reported a significant increase in personal financial assets, with a growth of 19.07% to 4.62 trillion yuan [15]. - Management teams from various banks emphasized their commitment to enhancing retail market share, indicating a long-term strategic focus on retail banking despite current market conditions [15][16].

Core Viewpoint - The retail banking sector is under pressure, with declining revenue and profit, while retail credit risks are on the rise. Banks are exploring new retail transformation paths, focusing on expanding retail AUM (Assets Under Management) to enhance non-interest income and reshape their business models towards wealth management [1][3][12]. Retail Banking Performance - In the first half of 2025, three banks (Postal Savings Bank, China Merchants Bank, Agricultural Bank) reported retail revenue contributions exceeding 50%, while most banks with a focus on corporate banking had contributions below 40% [3]. - Among the 12 sample banks, 10 reported a decline in retail revenue, and 7 saw a decrease in total profit. However, three banks (Industrial and Commercial Bank, China CITIC Bank, and China Everbright Bank) showed positive changes in retail profit [3][5]. - The retail revenue and profit statistics for major banks indicate a mixed performance, with some banks like ICBC showing a profit increase of 46.05% [5]. Retail AUM Insights - Retail AUM has become a key indicator for banks, with the top three banks (ICBC, CCB, ABC) exceeding 20 trillion yuan in AUM. ICBC leads with 24 trillion yuan [7]. - All 13 banks reported positive growth in retail AUM compared to the beginning of the year, with notable increases from banks like SPD Bank [7][8]. - Retail AUM is defined as a measure of a bank's comprehensive retail financial capabilities, including personal deposits, wealth management, and insurance [7][8]. Wealth Management Transition - The shift towards retail AUM signifies a transition from traditional deposit-based models to wealth management-focused strategies, enhancing non-interest income [8][12]. - Banks are emphasizing the importance of retail AUM in their earnings reports, with many highlighting their strategies to grow this metric [9][12]. - The growth of retail AUM is expected to support the increase in intermediary business income, as banks focus on expanding their customer base [12][14]. Strategic Focus of Banks - Different banks are adopting varied strategies for wealth management. For instance, China Merchants Bank emphasizes retaining customers over merely selling products, while Ping An Bank aims to enhance its insurance business as a growth engine [14][15]. - ICBC highlights its extensive customer base and wealth management coverage, while China Bank focuses on its infrastructure advantages [15][16]. - The overall trend indicates a move away from high-risk retail asset strategies towards building a sustainable wealth management framework [16].

Core Viewpoint - The retail banking sector is under pressure, with declining revenue and profit, while retail credit risks are on the rise, prompting banks to explore new transformation paths focused on retail AUM (Assets Under Management) as a key performance indicator [1][2][5]. Group 1: Retail Banking Performance - In the first half of 2025, three banks (Postal Savings Bank, China Merchants Bank, Agricultural Bank) reported retail revenue contributions exceeding 50%, while most banks with a focus on corporate banking had contributions below 40% [2]. - Among 12 sample banks, 10 reported a decline in retail revenue, and 7 saw a decrease in total profit, indicating that the retail business has not yet hit bottom [2]. - Notably, Industrial and Commercial Bank of China (ICBC) and China CITIC Bank reported significant increases in retail profit, with growth rates of 46.05% and 109.24% respectively [4]. Group 2: Retail AUM Trends - Retail AUM has become a focal point for banks, with the top three banks (ICBC, China Construction Bank, Agricultural Bank) exceeding 20 trillion yuan in retail AUM, and ICBC leading with 24 trillion yuan [5]. - All 13 banks analyzed reported positive growth in retail AUM compared to the beginning of the year, with notable increases from Shanghai Pudong Development Bank and Ping An Bank [5][6]. - Retail AUM is defined as a comprehensive measure of a bank's retail financial capabilities, including personal deposits, wealth management products, and insurance [5]. Group 3: Wealth Management Strategies - Banks are shifting focus from traditional deposit-based models to wealth management, emphasizing the importance of retail AUM for increasing non-interest income [6][11]. - The growth of retail AUM is expected to support the growth of intermediary business income, as highlighted by China Merchants Bank's strategy to enhance customer retention [9][12]. - Different banks are adopting varied approaches to wealth management, with ICBC focusing on customer coverage and China Bank emphasizing its infrastructure advantages [13][14].

Core Viewpoint - The retail banking sector is experiencing intensified competition, with significant growth in retail assets under management (AUM) and private banking clients among major banks, despite previous challenges in the market [2][4][7]. Retail AUM - The top three banks in retail AUM are China Merchants Bank (CMB) with 16.03 trillion yuan, Industrial Bank with 5.52 trillion yuan, and CITIC Bank with 4.99 trillion yuan [6][5]. - CMB's AUM growth is 7.39%, while Industrial Bank and CITIC Bank have growth rates of 8.00% and 6.52%, respectively [6]. - Notably, the AUM of several banks has increased significantly, with Zhejiang Commercial Bank and Pudong Development Bank showing growth rates of 12.48% and 10.55% [4][6]. - CMB's AUM surpasses that of its competitors by over 10 trillion yuan, establishing a substantial lead in the retail banking sector [4][5]. Private Banking Clients - The number of private banking clients has also seen substantial growth, with Zhejiang Commercial Bank leading at 15.52% growth, followed by Huaxia Bank, Minsheng Bank, and Pudong Development Bank with growth rates of 13.79%, 12.84%, and 10.15%, respectively [7]. - CMB, CITIC Bank, and Industrial Bank also reported increases in private banking clients, all exceeding 8% growth [7]. Wealth Management Revenue - Wealth management income has shown significant increases, with CMB reporting an 11.89% growth in fees and commissions, marking the first positive growth in three years [8]. - CITIC Bank's wealth management income growth reached a four-year high at 10.3%, while Industrial Bank's retail wealth income grew by 13.45% [8]. Retail Loan Quality - Retail loan non-performing ratios vary significantly among banks, with Bohai Bank having the highest at 4.43%, while CMB and Industrial Bank maintain the lowest at 1.03% and 1.22%, respectively [11][9]. - Despite CMB's strong performance, its non-performing ratio increased by 0.07 percentage points compared to the previous year [11]. Retail Strategy - The introduction of consumer loan interest subsidies is expected to enhance the competitive landscape, shifting focus from price wars to technology, service, and quality differentiation [12][13]. - Banks are emphasizing asset allocation and the application of AI models in their retail strategies, with CMB planning to integrate AI assistants to improve efficiency and workflow [14][15].

Core Insights - Zhejiang Commercial Bank (浙商银行) reported a slight increase of 0.63% in total assets for the first half of 2025, indicating stable growth in its financial position [1] - The bank experienced a significant growth in customer base, with an approximate increase of 10% [1] - As of the end of June, the bank's retail Assets Under Management (AUM) surpassed 700 billion yuan, marking a new milestone [1] - The growth in the retail customer segment reached a historical high, reflecting the bank's successful strategy in expanding its retail business [1]

Core Insights - China Merchants Bank (CMB) has surpassed 16 trillion yuan in retail assets under management (AUM), serving over 200 million personal customers, marking a significant milestone in the banking sector [2][3] - The bank's retail business revenue for 2024 reached 196.83 billion yuan, showing a year-on-year growth of 1.29%, while other major banks reported declines in retail revenue [3][4] Retail AUM Growth - CMB's journey in wealth management has been closely tied to China's economic growth, achieving its first 5 trillion yuan in AUM in 9 years, the second in just 5 years, and the latest 5 trillion in over 3 years [3] - The bank's retail AUM includes deposits, wealth management products, and funds, serving as a key indicator of its retail business strength [3] Challenges in Wealth Management - Despite revenue growth, CMB's pre-tax profit from retail financial services declined by 9.56% in 2024, with a significant drop of 25.24% in fees and commissions from wealth management [4] - The wealth management industry is facing new trends and challenges, prompting a need for adaptation [4][6] Changing Customer Demands - Customer needs are evolving towards a more inclusive and diverse range of financial products, with increasing participation from younger demographics and ordinary families [7] - The number of bank wealth management product investors reached 125 million in 2024, while public fund investors exceeded 700 million [7] Low-Interest Rate Environment - The persistent low-interest rate environment is reshaping the wealth management landscape, with the 10-year government bond yield dropping from approximately 3.2% to 1.7% since 2021 [8] - This trend presents both challenges and opportunities for wealth management institutions [8] Development Logic Shift - The industry is transitioning from a "many small" model to a "few strong" model, emphasizing high-quality development and international competition [8] - The rise of AI is expected to significantly transform service methods, operational models, and investment decision-making processes in wealth management [8] Commitment to Core Values - CMB emphasizes its role as a builder of a strong financial nation, focusing on enhancing its capabilities and supporting the real economy [9] - The bank aims to create long-term value by shifting its focus from sales volume to asset management scale [10] Asset Allocation Services - CMB has developed a comprehensive asset allocation system, allowing customers to choose investment strategies that align with their risk preferences [11] - The bank's international network facilitates global asset allocation for its clients [11] AI Integration in Financial Services - CMB is implementing an "AI First" strategy, prioritizing AI capabilities to enhance its service offerings and operational efficiency [12] - The bank has launched a large-scale financial model and is exploring over 120 application scenarios for AI [12] Market Regulation and Ethical Practices - CMB is committed to maintaining market standards and ethical practices in wealth management, advocating for responsible competition and product integrity [12] - The bank has introduced favorable policies to promote healthy competition in the wealth management sector [12]

Core Insights - China Merchants Bank (CMB) has surpassed 16 trillion yuan in retail AUM, becoming the first joint-stock commercial bank in China to reach this milestone [2] - Retail AUM includes customer deposits, wealth management, and funds, serving as a key indicator of a bank's retail business strength [2] - The bank's retail AUM growth accelerated significantly, with the time taken to reach the latest 5 trillion yuan milestone reduced to just over three years [2] Retail AUM Performance - As of the end of last year, CMB's retail AUM was 14.93 trillion yuan, showing a year-on-year growth of 12.05%, significantly outpacing its peers [4][5] - CMB's average AUM per customer stands at 71,100 yuan, with non-deposit AUM accounting for 74.38% of the total, indicating a strong shift towards higher-value products [4][5] Competitive Landscape - CMB's retail AUM is nearly three times that of the second-ranked bank among A-share listed joint-stock banks, showcasing its dominant position in the market [3] - The non-deposit AUM ratio of CMB is more than double that of the best-performing state-owned bank, highlighting its superior wealth management capabilities [5]

Core Insights - China Merchants Bank has become the first joint-stock commercial bank in the country to surpass a retail AUM (Assets Under Management) balance of 16 trillion yuan [1] - The bank's retail AUM growth has accelerated significantly, achieving the first 5 trillion in 9 years, the second in 5 years, and the latest 5 trillion in just over 3 years [1] - The growth in retail AUM has been driven by a recovering equity market, further solidifying the bank's core competitive advantages [1] Retail AUM Growth - As of the end of Q2, China Merchants Bank's retail AUM has reached a historical high in terms of incremental growth [1] - The bank's strategy in wealth management has shown a marked acceleration since it first introduced the retail AUM concept in 2007 [1]

Core Insights - China Merchants Bank (招商银行) has become the first joint-stock commercial bank in China to surpass a total retail AUM (Assets Under Management) of 16 trillion yuan [1] - The bank's retail AUM growth has accelerated significantly, achieving the first 5 trillion in 9 years, the second in 5 years, and the third in just over 3 years [1] - The bank's retail AUM reached a historical high in the second quarter of this year, driven by a recovering equity market [1]