On June 25th, CM BANK convened its 2025 annual general meeting of shareholders. The bank's Party Committee Secretary and designated President, Wang Xiaoqing, made his first public appearance in the role of President, marking his debut in the capital markets.
In his opening remarks, he expressed gratitude for the trust of shareholders. He stated that what he has taken over from his predecessor, former President Wang Liang, are "the achievements accumulated by CM BANK people over 39 years—a bank with a fortress-like balance sheet," calling it "a weighty responsibility."
Wang Xiaoqing frankly stated that CM BANK today faces numerous challenges, stemming from both common industry factors and the bank's own structural characteristics. Regarding the latter, he highlighted three points: first, the proportion of demand deposits is relatively high; second, as a bank distinguished by its retail business, it faces greater periodic revenue pressure in an environment of fee reductions and profit concessions; third, a high proportion of its credit assets originate from the retail segment.
Addressing common industry challenges like narrowing net interest margins in the current low-interest-rate cycle, Wang Xiaoqing proposed that the bank's operations must maintain "four pillars of resolve."
Putting the customer at the center is the first pillar. "The more challenges we face, the more we must adhere to a long-term perspective and avoid short-sighted opportunism."
Prioritizing asset quality is the second pillar: "We must operate within our capabilities, not build today's revenue with tomorrow's non-performing loans."
The third is that retail banking, with wealth management as a key driver, remains CM BANK's distinctive feature and stabilizing force.
The fourth is that CM BANK will continue to strengthen its investment in technology.
Regarding medium- to long-term growth drivers, Wang Xiaoqing proposed deepening and refining the bank's core business in five key areas.
Deepening customer engagement is placed first. With 220 million retail customers and 3.8 million corporate clients, he believes a significant portion of their needs remain unmet. "This is both a responsibility and a business opportunity." He simultaneously emphasized that looking inward for potential does not mean halting new customer acquisition, stating, "Customers are the foundation of CM BANK."
Wealth management is the second key driver. Customer demand for preserving and growing wealth is extremely strong. Faced with this vast market demand, CM BANK has the capability to further consolidate its brand and advantages in the wealth management sector.
The third is to further strengthen the industry-specific professional operation system. "We need to communicate with enterprises on the same wavelength," truly understanding the industries clients operate in and their pain points. "With nine financial licenses, we can provide clients with comprehensive financial services."
The fourth is for key regional branches to "play a leading role." The Yangtze River Delta, Pearl River Delta, West Coast (Haixi), Chengdu-Chongqing region, and Bohai Rim are all to become important growth poles. "Beyond the three top-tier head offices, there is still room for improvement in key regional branches." In Wang Xiaoqing's view, by better serving the local economy and getting closer to local industries and clients, CM BANK has room for growth.
The fifth is the potential for progress brought by new technologies, specifically in three areas: better improving customer experience, enhancing internal efficiency, and managing risks more effectively and promptly.
Wang Xiaoqing indicated that CM BANK's board of directors has reviewed the future five-year plan. He sees significant room for action in the next steps of operations. First, to make the plan more concrete with clearer pathways; second, to deepen and refine CM BANK's core business further; third, to remove potential obstacles in implementing the bank's plan; fourth, to maximize the motivation of CM BANK's 120,000 employees.
Wang Xiaoqing believes that excelling in each of these areas is what will allow CM BANK to stand out from the crowd. This distinctiveness means that during relatively unfavorable cycles, CM BANK's operations will demonstrate greater resilience; during favorable cycles, it will present a more dynamic structure, thereby repaying the trust of its customers and investors.
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