Core Viewpoint - ZhongAn Bank is entering a new strategic phase under the leadership of CEO Wu Zhonghao, focusing on business diversification and aiming to launch Hong Kong stock trading services within the year [3][6]. Financial Performance - In 2024, ZhongAn Bank reported total revenue of HKD 548 million, a year-on-year increase of 52.6%, and reduced net loss by 42% to HKD 232 million, moving closer to breakeven [4]. - The bank's net interest margin improved from 1.94% in 2023 to 2.41% in 2024, while net interest income rose by 86% to HKD 489 million [4][5]. - Deposits grew by 65.9% to HKD 19.399 billion, and total assets increased by 60% to HKD 22 billion, driven by innovative deposit products [5]. Business Strategy - ZhongAn Bank aims to diversify its business lines and enhance its wealth management services to optimize revenue structure, reducing reliance on interest income [6]. - The bank plans to implement a task incentive model to improve user engagement and cross-selling opportunities while maintaining cost control [5]. - The bank's asset under management (AUM) in fund business tripled in 2024, with plans to introduce Hong Kong stock trading services to complete its investment and wealth management offerings [6]. User Growth - As of the end of 2024, ZhongAn Bank's retail user base exceeded 800,000, covering over 13% of bank customers in Hong Kong, with a target to surpass 1 million users by 2025 [7].

Core Viewpoint - ZA Bank, Hong Kong's largest digital bank, reported significant growth in revenue and a reduction in net loss, indicating a positive trend towards profitability despite challenges in the banking sector [1][2]. Financial Performance - Total revenue for 2024 reached HKD 548 million, a year-on-year increase of 52.6% [1]. - Net loss narrowed to HKD 232 million, a 42% improvement compared to the previous year [1]. - Customer deposits grew by 66% to HKD 19.4 billion, while loan volume increased by 5.7% [1]. Net Interest Margin - ZA Bank's net interest margin expanded by 47 basis points to 2.41%, contrasting with the overall decline in the retail banking sector [1][4]. - Net interest income rose by 86% to HKD 489 million, contributing to the bank's move towards breakeven [1]. Leadership Changes - Calvin Ng, a founding member, has taken over as CEO, aiming to enhance user growth and diversify revenue streams [1][2]. Business Diversification - The bank is focusing on reducing reliance on interest income, with plans to launch Hong Kong stock trading services to complement existing offerings in U.S. stocks and cryptocurrencies [1][7]. - Currently, approximately 90% of total revenue comes from interest income, with efforts underway to increase contributions from wealth management services [7]. User Growth Strategy - ZA Bank aims to reach a target of 1 million users by 2025, representing a 25% increase from the current 800,000 users [2][9]. - The bank is adapting its customer acquisition strategy to focus on high-quality users through product-driven and word-of-mouth approaches [9]. Deposit Strategy - The bank's current proportion of demand deposits is around 30%, with plans to increase this to lower funding costs [5]. - Innovative deposit products like the "High-Interest Money Pot" are designed to attract deposits while maintaining customer engagement through task completion [6]. Market Positioning - In a competitive landscape with eight digital banks in Hong Kong, ZA Bank positions itself as a one-stop bank for both corporate and retail clients, offering diversified services [2].

Core Insights - ZA Bank achieved a total revenue of HKD 548 million in 2024, marking a significant year-on-year increase of 52.6% [1] - Net interest income surged by 86% to HKD 489 million, with a net interest margin expanding to 2.41%, outperforming the average of 1.52% for retail banks in Hong Kong [1] - Customer deposits skyrocketed by 66% to HKD 19.4 billion, while loan growth defied market trends with a 5.7% increase, contrasting with an overall market contraction of 2.8% [1] - The net loss narrowed by 42% to HKD 232 million, achieving a monthly profit breakthrough in July 2024, validating the sustainability of its business model [1] User Growth - By the end of 2024, ZA Bank's retail user base exceeded 800,000, covering over 13% of the banking customer population in Hong Kong, achieving in five years what traditional banks took a century to accumulate [2][5] - Innovative deposit products such as "High-Interest Money Pot" and "Lazy Money Pot" have enhanced customer retention, with over half of users setting ZA Bank as their default bank for "Faster Payment" [2] - The bank aims to reach one million users by 2025, emphasizing that this milestone is not just a number but a testament to the sustainability of its platform model [2][5] Strategic Upgrades - In 2025, ZA Bank plans to expand its investment ecosystem, creating a comprehensive investment platform covering funds, US stocks, cryptocurrencies, and Hong Kong stocks, targeting new immigrants and younger demographics [3][6] - The app currently offers over 170 fund products, with fund assets doubling in six months, and the "StockBack" cashback program driving growth in US stock trading [3] - The "Banking for Web3" strategy is ongoing, making ZA Bank the first digital bank in Hong Kong to provide reserve banking services for stablecoin issuers, serving over 100,000 small and micro enterprises and two licensed virtual asset trading platforms [3] Recognition and Awards - ZA Bank has received global recognition, being named the first Hong Kong bank to win the "Rising Star" award by Fortune magazine and recognized as one of Asia's top 15 digital banks [7] - The bank has also won the Hong Kong Annual SME Digital Innovation Award for its fast online corporate account opening service, establishing itself as a leading partner for local SMEs [7] - The ZA Bank app was awarded the 2025 iF Design Award, recognized as the "Oscar" of the design industry, marking it as a standout in digital banking design [7]