China Merchants Bank (03968) reported mixed first-quarter results, with wealth management revenue and net interest margin exceeding expectations, although fee income and capital performance remained weak. During the period, operating revenue increased by 3.5% year-on-year, while pre-provision operating profit grew by 4.2%. Net profit rose by 1.5%, slightly below expectations. The report noted that the number of customers at the "Golden Sunflower" tier or above increased by 4.8% quarter-on-quarter, outpacing the 1.3% growth in overall retail customers, which is seen as a positive signal for future fee income. However, credit card fee income fell by 12% year-on-year, dragging down overall net fee income growth. Retail credit demand remained sluggish, with retail loan balances contracting by 1% quarter-on-quarter. Despite this, total loans grew by 2.8% quarter-on-quarter, and the bank's full-year loan growth guidance of 6% to 7% is considered highly achievable.