Zhejiang Merchants Bank: In the second half of the year, we will focus on addressing the challenge of interest rate spreads through four key measures.

Hou Bo, Assistant to the President of Zhejiang Merchants Bank, stated at the bank's 2025 interim performance briefing that in the second half of the year, they will follow the strategy of reducing costs, improving quality, and increasing efficiency. Through four measures, they will address the challenge of interest rate spreads to ensure that the 2025 revenue and profits reach the annual budget target. The first measure is to systematically study the overall asset allocation strategy for the second half of the year and the next three years, especially in terms of client groups, industries, regions, and durations, to proactively adjust the structure of credit assets to alleviate the downward pressure on asset yields. The second measure is to deepen the optimization of liabilities structure, focusing on launching special actions for demand deposits to further increase the proportion of demand deposits, while strictly controlling high-cost deposits from insurance companies and managing the costs of interbank liabilities to reduce the debt interest rate. The third measure is to deepen the customer-centric comprehensive cooperation reform to enhance customer's overall income. The fourth measure is to strengthen comprehensive cost control and reduce operating costs.