Core Viewpoint - The credit card industry is transitioning from a focus on scale expansion to prioritizing quality, driven by digital transformation and risk management strategies [1][11]. Industry Overview - As of June 2025, the total number of credit cards and loan cards in China was 715 million, a decrease of 12 million from the previous year, indicating a continued decline in the market [1]. - Many banks are experiencing a slowdown in credit card loan balance growth, with some reporting negative growth as they shift towards more cautious operational strategies [1]. Asset Quality - The credit card non-performing loan (NPL) ratios show a divergence among banks, with major state-owned banks like ICBC and CCB having NPL ratios above 2%, while Agricultural Bank of China has a lower ratio of 1.52% [2]. - The overall NPL ratio for the industry is under pressure, with some banks facing rising NPLs despite efforts to control them through enhanced collection and write-off measures [2]. Risk Control and Quality Optimization - Risk control capabilities are becoming a key differentiator among banks, with many adopting advanced technologies like AI and big data to enhance their risk management processes [3]. - As of mid-2025, ICBC's NPL ratio was 2.6%, CCB's was 2.35%, and ABC's was 1.52%, while CMB maintained a low NPL ratio of 1.75% [3][4]. - CMB's proactive risk management strategies have led to a stable NPL balance of 161.53 billion yuan, with a consistent NPL ratio [4]. Digital Transformation - Digital transformation is reshaping the service models and operational efficiency of credit card businesses, with banks implementing full-process digital coverage from customer acquisition to risk management [9]. - By mid-2025, the monthly active users (MAU) of mobile banking apps in China fluctuated between 650 million and 700 million, with a growth rate between -1.2% and 4.6%, indicating market saturation [9][10]. Scene Deepening and Ecological Collaboration - Banks are focusing on deepening customer engagement through targeted marketing and product offerings tailored to specific consumer needs, such as youth and travel [7]. - CMB is leveraging a dual-card model to enhance collaboration with e-commerce and other sectors, while other banks are also exploring innovative product offerings to attract younger customers [7][8]. Future Outlook - Leading banks are preparing for industry downturns and structural changes by enhancing risk management, ecological collaboration, and digital transformation [11][12]. - The future competitive edge for banks will lie in their ability to manage risks, optimize operations, and innovate continuously rather than merely expanding their scale [11][12].

Core Viewpoint - The report highlights the performance of China Construction Bank's credit card business, showcasing significant growth in card issuance, loan balances, and consumer spending, while also emphasizing the bank's strategic initiatives to stimulate consumption and support economic recovery [1][3][6]. Credit Card Business Overview - As of June 30, 2025, China Construction Bank issued a total of 129 million credit cards, serving 103 million customers [1]. - The bank's domestic credit card loan balance reached 1.05 trillion yuan, maintaining a leading position in the industry, with a retail loan proportion of 12% [3]. - The credit card utilization rate stood at 47% [3]. Consumer Spending - In the first half of 2025, the total transaction volume for credit card spending was 1.30 trillion yuan [6]. Retail Loan Structure and Performance - By June 30, 2025, the bank's total personal customer base was 777 million, with personal financial assets exceeding 22.04 trillion yuan [10]. - Domestic personal deposits amounted to 17.63 trillion yuan, reflecting an increase of 1.39 trillion yuan or 8.57% from the previous year [10]. - The bank's domestic personal loans and advances reached 9.10 trillion yuan, up by 231.77 billion yuan or 2.61% [10]. Strategic Initiatives - The bank has launched various consumer-oriented campaigns, such as the "Dragon Card Credit Card 66 Festival," focusing on popular consumption areas like dining, entertainment, and shopping [9]. - The "Jianxing Life" platform has registered 166 million users, facilitating over 140 billion yuan in personal loans, and contributing to a significant boost in consumer spending [11]. Loan Quality and Financial Performance - As of June 30, 2025, the non-performing loan ratio for domestic loans and advances was 1.31%, consistent with the previous year [13]. - The bank's total operating income for the first half of 2025 was 394.27 billion yuan, with a profit of 182.44 billion yuan [14].