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Financial Performance - The average return on equity (ROAE) for the year reached 14.49%[12] - Total assets exceeded RMB 12 trillion, with deposits surpassing RMB 9 trillion, both growing over 10% year-on-year[12] - The bank achieved positive profit growth for the year, with a narrowing decline in revenue quarter by quarter[12] - Operating net income reached 337.12 billion yuan, and net profit attributable to shareholders grew by 1.22% year-on-year to 148.39 billion yuan[24] - The bank's operating income for 2024 was RMB 337,121 million, a decrease of 0.58% compared to RMB 339,078 million in 2023[49] - The pre-tax profit increased by 1.15% to RMB 178,652 million from RMB 176,618 million year-on-year[49] - Net profit attributable to shareholders rose by 1.22% to RMB 148,391 million, compared to RMB 146,602 million in the previous year[49] - The total operating income for 2024 was RMB 337.12 billion, a decrease of 0.58% compared to 2023[55] Asset Quality and Risk Management - The non-performing loan (NPL) ratio and provision coverage ratio remained at a competitive level among listed banks[12] - The non-performing loan ratio remained stable at 0.95%, with a provision coverage ratio of 411.98% and a loan provision ratio of 3.92%[24] - The bank is committed to enhancing risk management and addressing key area risks to prevent systemic risks[12] - The total amount of non-performing loans across all categories was RMB 65.61 billion, with a stable NPL ratio of 0.95%[110] - The company has implemented stricter credit policies, focusing on high-quality clients and enhancing risk management in key sectors[115] - The company continues to adjust its asset structure proactively, maintaining stable asset quality amid changing macroeconomic conditions[113] Capital Adequacy and Financial Stability - The core tier 1 capital adequacy ratio increased by 1.13 percentage points year-on-year to 14.86%, while the total capital adequacy ratio reached 19.05%[24] - The capital adequacy ratio increased to 19.05%, up 1.17 percentage points from the previous year[53] - The leverage ratio as of December 31, 2024, was 8.46%, up by 0.20 percentage points from the previous year[130] - The balance of loan loss provisions as of December 31, 2024, was RMB 270.301 billion, an increase of RMB 0.767 billion from the previous year, with a provision coverage ratio of 411.98%, down by 25.72 percentage points[128] Customer Base and Retail Banking - Retail customer base exceeded 200 million, with total assets under management (AUM) approaching 15 trillion yuan[14] - The total number of retail customers reached 210 million, a growth of 6.60% compared to the previous year[146] - The retail loan balance grew by 6.06% to RMB 3.58 trillion, while retail deposit balance increased by 15.43% to RMB 3.83 trillion[146] - The total assets under management (AUM) for retail customers increased by 12.05% to RMB 14.93 trillion[146] Digital Transformation and Innovation - The company launched the first open-source financial model in the domestic banking industry with 100 billion parameters, enhancing its competitive advantage[14] - The company is committed to advancing AI technology in finance, focusing on building a robust digital infrastructure and expanding its AI ecosystem[21] - The open operational service platform "Kaiyang Portal" has completed intelligent transformation for over 730 operational processes, with key business processing efficiency improving by 58.32% compared to the end of the previous year[155] - The overall availability of cloud services exceeded 99.999%, with a total of 5,942 reusable components published by the end of the reporting period[156][157][158] Strategic Focus and Future Plans - The bank's strategic focus includes deepening professional capabilities and supporting the real economy[12] - The bank's management emphasized the importance of achieving the goals set in the "14th Five-Year Plan" amid external pressures and internal challenges[12] - The bank aims to enhance its strategic execution, customer service, management, innovation, talent, and technology capabilities to strengthen its operational resilience against external uncertainties[34] - The bank plans to accelerate international development and enhance its global service capabilities through cross-border financial services[34] Non-Interest Income and Fee Structure - Non-interest income accounted for 37.33% of total income, an increase of 0.64 percentage points year-on-year[24] - The net fee and commission income was CNY 72.09 billion, a year-on-year decrease of 14.28%, representing 57.29% of non-interest income[166] - Fee and commission income totaled RMB 81.040 billion, down 12.70% year-on-year, with wealth management fees declining by 22.70% to RMB 22.005 billion[77] Environmental, Social, and Governance (ESG) Initiatives - The bank's ESG rating for 2024 was upgraded to the highest level of "AAA"[25] - The company saved 46.588 million sheets of paper and reduced carbon dioxide emissions by 419.30 tons through the promotion of electronic agreements and paperless operations[155] - The company is committed to social responsibility by enriching family trust services and promoting innovative offerings[197] Customer Engagement and Technology - Monthly active users (MAU) for the bank's apps reached 123 million, with wholesale online channel active customer count averaging 1.9494 million[31] - The company upgraded its online operations and enhanced user experience through the iteration of its wealth management app[195] - The company is focusing on value-driven customer acquisition strategies and product upgrades in the credit card business[199]

Investment Rating - The report maintains a "Buy" rating for China Merchants Bank-H (3968 HK) with a target price of HK$48.90, representing a potential upside of 29% from the current price of HK$38.00 [1][5]. Core Views - The bank's 3Q24 earnings met expectations, benefiting from effective cost control that offset declines in interest and commission income. The adjusted net profit for 3Q24 was RMB 38.4 billion, a year-on-year increase of 0.8% [6][10]. - Revenue growth continues to slow, with a year-on-year decline of 2.6%, primarily due to a 14 basis point decrease in net interest margin, which offset a 4.7% increase in loans [6][12]. - The bank's asset quality showed relative improvement, with a non-performing loan ratio stable at 0.94% and a high coverage ratio of 432.2% [7][14]. - The outlook for 4Q24 and 2025 suggests a continued decline in net interest margin, although the pace of decline is expected to slow. Credit demand is anticipated to recover in 2025 [8][12]. Summary by Sections Earnings Performance - In 3Q24, adjusted net profit was RMB 38.4 billion, with a year-to-date adjusted net profit of RMB 111.2 billion, flat year-on-year [6][10]. - The bank's total revenue for 3Q24 was RMB 79.1 billion, down 2.6% year-on-year, driven by a decrease in net interest income and commission income [13]. Financial Metrics - The bank's cost-to-income ratio improved to 32.6%, down from 34.3% in 2Q24, indicating better cost management [7][14]. - The core Tier 1 capital ratio increased by 87 basis points to 14.73%, reflecting strengthened capital levels [7][14]. Future Outlook - The bank expects a decline in net interest margin in 4Q24, but the decrease is projected to be less severe than in 2024. Loan growth is expected to exceed 2024 levels, particularly in retail loans [8][12]. - The bank's ability to generate positive growth in commission income in 2025 will depend on regulatory decisions regarding fee reductions [8][12].

Financial Performance - The company reported a mid-year financial performance with significant metrics to be detailed in the financial summary section[4]. - The net profit attributable to shareholders for the first half of 2024 was RMB 60 billion, representing a growth of 12% compared to the same period last year[4]. - The company reported a net operating income of RMB 172.92 billion for the first half of 2024, a decrease of 3.11% compared to RMB 178.47 billion in the same period of 2023[20]. - The net profit attributable to shareholders was RMB 74.74 billion, down 1.33% from RMB 75.75 billion year-on-year[20]. - Future guidance indicates an expected revenue growth of 8-10% for the full year 2024[4]. Assets and Liabilities - The total assets of the company reached RMB 5.2 trillion, reflecting a year-on-year increase of 8%[4]. - Total assets reached RMB 11,574.78 billion, representing a growth of 4.95% from RMB 11,028.48 billion at the end of 2023[20]. - The total liabilities of the group amounted to RMB 10,457.758 billion, a 5.18% increase compared to the end of the previous year, driven by steady growth in customer deposits[69]. - Customer deposits rose by 6.22% to RMB 8,662.89 billion from RMB 8,155.44 billion at the end of 2023[20]. Loan Quality and Non-Performing Loans - The loan quality analysis indicated a non-performing loan ratio of 1.5%, which is stable compared to the previous year[4]. - The non-performing loan ratio improved slightly to 0.94%, down 0.01 percentage points from the previous year[21]. - The non-performing loan balance was RMB 63.427 billion, with a non-performing loan ratio of 0.94%, a slight decrease of 0.01 percentage points from the previous year[78]. - The overdue loans totaled RMB 95.58 billion, representing 1.42% of total loans, an increase of 0.16 percentage points from the end of the previous year[91]. Capital Adequacy and Risk Management - The capital adequacy ratio stands at 14.5%, exceeding the regulatory requirement of 10.5%[4]. - The core tier 1 capital adequacy ratio, tier 1 capital adequacy ratio, and total capital adequacy ratio are 13.86%, 16.09%, and 17.95%, respectively, increasing by 0.13, 0.08, and 0.07 percentage points compared to the end of last year[100]. - The loan provision rate stands at 4.08%, a slight decrease of 0.06 percentage points from the end of last year[95]. - The company has strengthened risk management capabilities, particularly in real estate and local debt sectors, to maintain asset quality[134]. Income and Expenses - Interest income for the period was RMB 187.99 billion, an increase of 0.35% year-on-year, driven by the growth in interest-earning assets[26]. - The group's net interest income was CNY 104.449 billion, a year-on-year decrease of 4.17%[37]. - Non-interest net income totaled 68,473 million RMB, a decrease of 1.43% year-on-year, with net commission and fee income dropping by 18.61% to 38,328 million RMB[42][44]. - Operating expenses for the first half of 2024 were 56,345 million RMB, a slight decrease of 0.05% year-on-year, with employee expenses declining by 0.55%[46][48]. Customer Engagement and Digital Transformation - New product offerings include a digital banking platform aimed at enhancing customer engagement and operational efficiency[4]. - Monthly active users of the bank's apps reached 117 million, with over 50% of retail loan acquisition being digital[126]. - The company invested 4.586 billion yuan in information technology, accounting for 2.91% of net operating income, with a total of 4,198 financial technology innovation projects initiated[125]. - The open operation service platform "Kaiyang Portal" has completed intelligent transformation for over 500 operational processes, improving key business processing efficiency by 56% compared to the end of the previous year[130]. Strategic Initiatives and Market Expansion - The company plans to expand its market presence by increasing the number of branches by 10% in the next fiscal year[4]. - The company aims to enhance its non-interest income through product innovation and deepening customer engagement in retail and corporate services[143]. - The company plans to continue supporting the real estate market while managing risks associated with different types of real estate enterprises[145]. - The company is focusing on optimizing its asset structure and maintaining a reasonable asset yield level while managing liabilities effectively[140].

Customer Deposits and Liabilities - As of June 30, 2024, total customer deposits reached RMB 866.29 billion, an increase of 6.22% compared to the end of 2023, accounting for 82.84% of total liabilities[4] - The total liabilities of the group amounted to RMB 1,045.78 billion as of June 30, 2024, compared to RMB 994.27 billion at the end of 2023[3] - The total liabilities reached RMB 10,457.76 billion, an increase of 5.18% compared to the previous year, primarily due to steady growth in customer deposits[25] - Customer deposits totaled RMB 8,662.886 billion, marking a 6.22% increase compared to the end of last year[59] Loans and Advances - The total amount of loans and advances was RMB 674.78 billion, with a year-on-year increase in various loan categories[12] - The total loans and advances amounted to RMB 6,747.80 billion, reflecting a growth of 3.67% from the previous year[28] - The total loans and advances amounted to RMB 6,747.804 billion, reflecting a growth of 3.67% year-on-year[59] - Retail loans accounted for 52.48% of total loans, with non-performing retail loans at RMB 32.04 billion, resulting in an NPL ratio of 0.90%[12] Asset Quality and Non-Performing Loans - Non-performing loans (NPL) amounted to RMB 63.43 billion, with an NPL ratio of 0.94%, a slight decrease of 0.01 percentage points from the end of 2023[11] - The proportion of normal loans was 97.82% of total loans, while the proportion of attention loans increased to 1.24%[10] - The non-performing loan (NPL) ratio was 0.94%, a decrease of 0.01 percentage points from the end of the previous year[78] - Credit impairment losses decreased by 13.30% to RMB 26.928 billion, reflecting improved asset quality[93] Financial Performance - The group achieved operating net income of RMB 172.92 billion for the first half of 2024, a decrease of 3.11% year-on-year[74] - The pre-tax profit for the first half of 2024 was RMB 89.64 billion, down 1.37% from the same period in 2023[74] - The net profit attributable to shareholders was RMB 74.74 billion, a decrease of 1.33% year-on-year[74] - Net interest income accounted for 60.40% of total income, while non-interest net income increased by 0.67 percentage points year-on-year to 39.60%[61] Capital Adequacy and Risk Management - The core tier 1 capital adequacy ratio, tier 1 capital adequacy ratio, and capital adequacy ratio were 11.64%, 13.51%, and 14.60% respectively at the end of the reporting period[57] - As of the reporting period, the company's core Tier 1 capital adequacy ratio, Tier 1 capital adequacy ratio, and total capital adequacy ratio were 13.86%, 16.09%, and 17.95%, respectively, an increase of 0.13, 0.08, and 0.07 percentage points compared to the end of the previous year[172] - The leverage ratio decreased to 7.88% from 8.26%, a decline of 0.38 percentage points[175] - The company has consistently met capital and leverage regulatory requirements throughout the reporting period[194] Investment and Securities - The total amount of financial investments measured at fair value and recognized in profit or loss was RMB 579.23 billion, an increase from RMB 526.15 billion as of December 31, 2023, representing a growth of 10.06%[18] - The total bond investment amounted to RMB 2,928.55 billion as of June 30, 2024, up from RMB 2,844.69 billion at the end of 2023, marking a growth of 2.94%[22] - The company has actively expanded its bond investment scale while increasing trading operations, resulting in favorable returns amid a stable funding environment and declining bond yields[18] - The group’s investment securities and other financial assets amounted to RMB 3,350.388 billion, representing 28.95% of total assets[97] Operating Expenses and Income - Operating expenses amounted to CNY 56.34 billion, a slight decrease of 0.05% year-on-year[119] - The cost-to-income ratio was 29.75%, an increase of 0.68 percentage points year-on-year[119] - Total net fee and commission income was CNY 38.33 billion, representing an 18.61% decrease year-on-year[116] - Wealth management fees and commissions decreased by 32.51% year-on-year to CNY 11.44 billion[117] Shareholder Information and Governance - The company held a shareholders' meeting on June 25, 2024, where 14 proposals were approved, including the 2023 annual profit distribution plan[143] - The first major shareholder, China Merchants Group, holds 29.97% of the company's shares, with China Merchants Shipping Company directly owning 13.04%[162] - The company actively promotes sustainable development across various sectors, including inclusive finance and green finance, as part of its governance structure[141] - The company has no significant guarantees outside of its approved business scope during the reporting period[156]

Financial Performance - Net profit attributable to shareholders for Q1 2024 was RMB 38,077 million, a decrease of 1.96% from RMB 38,839 million in Q1 2023[10]. - Operating income for Q1 2024 was RMB 86,420 million, down 4.64% from RMB 90,625 million in the same period last year[10]. - The basic earnings per share for ordinary shareholders was RMB 1.51, a decrease of 1.95% from RMB 1.54 in Q1 2023[10]. - The annualized return on average equity for ordinary shareholders was 16.08%, down from 18.43% in the previous year[10]. - For Q1 2024, the group achieved operating net income of CNY 86.42 billion, a year-on-year decrease of 4.64%[50]. - Net profit attributable to shareholders was CNY 38.08 billion, down 1.96% year-on-year[50]. - Net interest income for the quarter was CNY 52.00 billion, a decline of 6.15% year-on-year, accounting for 60.17% of total operating income[53]. - Non-interest income was CNY 34.42 billion, down 2.26% year-on-year, with net fees and commissions decreasing by 19.44% to CNY 20.20 billion[55]. Assets and Liabilities - Total assets as of March 31, 2024, reached RMB 11,520,226 million, an increase of 4.46% compared to RMB 11,028,483 million at the end of 2023[10]. - The total liabilities increased to RMB 10,394,735 million as of March 31, 2024, compared to RMB 9,942,754 million at the end of 2023[5]. - The equity attributable to shareholders rose to RMB 1,118,965 million, reflecting a 3.96% increase from RMB 1,076,370 million[10]. - Customer deposits totaled CNY 8,440.100 billion, marking a 3.49% increase compared to the end of last year[26]. - Total liabilities stood at CNY 10,394.735 billion, which is a 4.55% increase from the previous year-end[26]. - The total amount of loans and advances reached CNY 6,815.827 billion, reflecting a growth of 4.72% year-on-year[26]. Cash Flow and Liquidity - Cash flow from operating activities showed a significant improvement, with a net cash outflow of RMB (1,208) million compared to RMB (12,618) million in the same period last year, indicating a 90.43% increase[10]. - The net cash flow from investing activities was RMB 1.119 billion, a significant improvement from a net outflow of RMB 91.875 billion in the same period last year[110]. - The net cash flow from financing activities was RMB 129.954 billion, compared to RMB 43.944 billion in Q1 2023[110]. - The company reported a net increase in cash and cash equivalents of RMB 129.865 billion during the quarter, compared to a decrease of RMB 60.549 billion in the same period last year[110]. - The average liquidity coverage ratio for Q1 2024 was 160.96%, an increase of 1.14 percentage points from the previous quarter[119]. Risk Management and Asset Quality - The non-performing loan ratio for corporate loans was 1.15%, while the ratio for retail loans was 0.91%[41]. - The company plans to enhance risk management mechanisms and focus on key risk areas, particularly in the real estate sector, to ensure asset quality stability[70]. - The company disposed of non-performing loans amounting to RMB 15,288 million during the reporting period, including regular write-offs of RMB 7,072 million and recoveries of RMB 2,125 million[69]. - The non-performing loan (NPL) ratio remained stable at 0.91% as of March 31, 2024, with a non-performing loan balance of CNY 58.288 billion[89]. - The company generated new non-performing loans of CNY 16.265 billion in Q1 2024, with an annualized NPL generation rate of 1.03%[90]. Capital Adequacy - The core tier 1 capital ratio improved to 14.07%, an increase of 0.34 percentage points from the previous year-end, while the total capital adequacy ratio rose to 18.20%[72]. - The tier 1 capital adequacy ratio under the advanced approach is 16.47%, up 0.77 percentage points from 15.70% at the end of 2023[74]. - The company maintained a leverage ratio of 8.11%, a slight decrease of 0.15 percentage points from the previous period[72]. - The loan loss provision balance was RMB 264,762 million, an increase of RMB 3,360 million from the previous year-end, with a provision coverage ratio of 454.23%[69]. Strategic Goals and Business Development - The strategic goal of the company is to build a "value bank," focusing on balanced development in quality, efficiency, and scale[25]. - The company plans to continue focusing on enhancing customer deposits and interbank placements to improve liquidity and operational efficiency[10]. - The company will continue to invest in financial technology and promote the application of artificial intelligence to enhance operational efficiency[32]. - The company’s retail loans accounted for 53.38% of the total loan and advance balance, with a non-performing loan balance of RMB 31,112 million[64].

Financial Performance - The group achieved operating net income of RMB 339.078 billion, a year-on-year decrease of 1.64%[11] - Net profit attributable to shareholders was RMB 146.602 billion, an increase of 6.22% year-on-year[11] - Net interest income reached RMB 214.669 billion, down 1.63% compared to the previous year[11] - Non-interest net income was RMB 124.409 billion, a decline of 1.66% year-on-year[11] - The average return on total assets (ROAA) was 1.39%, and the average return on equity (ROAE) was 16.22%, both showing a decrease compared to the previous year[11] - The net income for the reporting period was RMB 194,315 million, with a cost-to-income ratio of 31.96%, up 0.01 percentage points year-on-year[85] Loan and Deposit Growth - Interest income from loans and advances was RMB 375.610 billion, an increase of 6.29% year-on-year, driven by the expansion of interest-earning assets[13] - Total loans and advances amounted to RMB 6,508,865 million, with a non-performing loan amount of RMB 61,579 million, resulting in a non-performing loan ratio of 0.95% as of December 31, 2023[74] - Retail loan balance stood at RMB 3,437.88 billion, growing by 8.73% year-on-year, with small and micro loans amounting to RMB 751.30 billion, up 19.06%[39] - As of December 31, 2023, total customer deposits reached RMB 8,155.44 billion, an increase of 8.22% compared to RMB 7,535.74 billion at the end of 2022[67] - Customer deposit balance reached RMB 7,871.56 billion, an increase of RMB 597.05 billion, or 8.21% year-on-year[153] - The average daily balance of core deposits increased by RMB 758.20 billion, or 12.94%, accounting for 86.63% of customer deposits[153] Asset Quality and Non-Performing Loans - The non-performing loan (NPL) balance increased to RMB 61.58 billion, a rise of RMB 3.58 billion from the previous year, with an NPL ratio of 0.95%, down 0.01 percentage points[70] - The total amount of normal loans was RMB 6,375.96 billion, accounting for 97.95% of total loans, with non-performing loans comprising 0.95% of the total[36] - The bank's retail non-performing loan balance was RMB 30.59 billion, with a non-performing loan rate of 0.89%, unchanged from the previous year[39] - The company reported a retail loan non-performing rate of 0.90%, with a focus on optimizing customer structure and quality asset allocation[136] - The company’s non-performing loan ratio for real estate was 5.01%, an increase of 1.02 percentage points from the end of the previous year[127] - New non-performing loans generated amounted to RMB 60.99 billion, a decrease of RMB 1.98 billion, with a non-performing loan generation rate of 1.03%, down 0.12 percentage points year-on-year[157] Capital Adequacy and Risk Management - The bank's core Tier 1 capital adequacy ratio was 13.32%, up 0.09 percentage points from the previous year-end[49] - The core tier 1 capital adequacy ratio increased to 11.86%, up 0.34 percentage points from the previous year, while the total capital adequacy ratio rose to 14.96%, an increase of 0.28 percentage points[81] - The loan loss provision balance was CNY 261.40 billion, an increase of CNY 7.99 billion from the end of the previous year, with a coverage ratio of 456.73%[131] - The company has enhanced risk management strategies, focusing on key areas such as personal housing loans and consumer credit, ensuring overall asset quality stability[134] Digital Transformation and Innovation - The company is committed to digital transformation, improving decision-making efficiency through data-driven management platforms[145] - The company launched 558 new fintech innovation projects and 612 new online projects during the reporting period, with a cumulative total of 3,800 fintech projects initiated[94] - The bank's online corporate banking international business section served 107,206 customers, a 98% increase year-on-year, with online transaction volume reaching 1.5 million[116] - The monthly active users (MAU) of the bank's app reached 117 million, enhancing digital service capabilities[119] Wealth Management and Investment Banking - Retail financial business pre-tax profit reached RMB 99,913 million, a year-on-year increase of 6.09%, contributing 56.57% to the group's pre-tax profit[85] - Wealth management fees and commission income was RMB 28.47 billion, a year-on-year decrease of 7.89%[150] - The total assets under management (AUM) for retail customers amounted to RMB 13.32 trillion, reflecting a growth of 9.88% year-on-year[115] - The company completed 30 Hong Kong IPO projects during the reporting period, maintaining a leading position in the Hong Kong IPO underwriting business[175] Corporate Client Services - The number of corporate clients served reached 2.8206 million, an increase of 11.66% compared to the previous year, with corporate loan balance growing by 10.70% to RMB 2,321,585 million[89] - The company served 87,100 clients with corporate collection products, a year-on-year increase of 38.92%, with a transaction amount of 6.28 trillion yuan, up 47.76% year-on-year[191] - A total of 6,285 corporate clients were provided with hedging services, with derivative trading volume amounting to 64.783 billion USD[177] Strategic Focus Areas - The company plans to enhance non-interest income through wealth management business development, focusing on product innovation and optimizing the structure of insurance, funds, and wealth management products[102] - The company aims to maintain a stable asset quality in personal housing loans, with a non-performing loan rate of 0.35% and overdue loan rate of 0.50%[138] - The company plans to focus on key areas such as technology finance, green finance, and digital finance to optimize its credit structure[156]

Asset Quality and Loans - The non-performing loan ratio as of the end of 2023 was 0.95%, indicating stable overall asset quality, with a provision coverage ratio of 437.70%[11] - The total amount of non-performing loans across all sectors was RMB 61.58 billion, with an overall NPL ratio of 0.95%[118] - The non-performing loan balance was RMB 61.58 billion, with a non-performing loan ratio of 0.95%, a decrease of 0.01 percentage points year-on-year[41] - The NPL amount for retail loans was RMB 30.59 billion, with a stable NPL ratio of 0.89%[117] - The real estate sector's NPL ratio was notably high at 5.26%, reflecting ongoing risks in this area[118] - The total amount of loans and advances increased by 7.5% from RMB 6,051,459 million in December 2022 to RMB 6,508,865 million in December 2023[120] - The total loans and advances amounted to RMB 6,508,865 million, with a non-performing loan (NPL) amount of RMB 61,579 million, resulting in an NPL ratio of 0.95%[120] - The small and micro loans reached RMB 751.30 billion, representing a growth of 19.06% compared to the previous year[117] - The manufacturing sector loans increased by 23.90% year-on-year, totaling RMB 577.03 billion, and accounted for 8.87% of total loans[119] Financial Performance - In 2023, the operating income of China Merchants Bank was RMB 339,078 million, a decrease of 1.64% compared to RMB 344,740 million in 2022[27] - The pre-tax profit increased by 6.97% to RMB 176,618 million from RMB 165,113 million in the previous year[27] - The net profit attributable to shareholders rose by 6.22% to RMB 146,602 million, compared to RMB 138,012 million in 2022[27] - The average return on equity (ROAE) for common shareholders remained above 16%, indicating strong shareholder value creation[12] - The average return on total assets (ROAA) was 1.39%, down 0.03 percentage points from the previous year[40] - The company achieved a net operating income of RMB 339.08 billion in 2023, a decrease of 1.64% year-on-year[40] - Non-interest net income totaled 124.41 billion RMB, down 1.66% year-on-year, with net fees and commissions declining by 10.19% to 92.83 billion RMB[68][71] Customer Base and Retail Services - The number of retail customers reached 197 million, with total assets under management (AUM) exceeding 13 trillion RMB[11] - Retail customer base reached 197 million, a year-on-year increase of 7.07%, with high-net-worth clients (assets over 500,000 yuan) growing by 12.00% to 4.64 million[14] - The number of wealth management clients increased by 19.13% to 51.38 million, reflecting a successful upgrade from payment services to wealth management[16] - Retail customer deposits reached 3.31 trillion yuan, marking a 12.13% increase from the previous year, with demand deposits accounting for 58.16% of the average daily balance[14] - The total assets under management for retail customers amounted to 13.32 trillion yuan, up 9.88% year-on-year, with high-net-worth clients' assets increasing by 9.66%[14] Technology and Innovation - The company has made significant technological investments, with user numbers for the upgraded app surpassing 200 million and over 17,000 full-time positions replaced by automation[22] - The number of users on the bank's app surpassed 200 million, with online financing rates exceeding 92%[136] - The new generation open operation service platform improved processing efficiency by 27%[189] - The low-code development system has released 5,646 applications, with business personnel accounting for over 53% of all developers[197] - Nearly 400 data sources have been introduced by the data platform, covering 60% of the bank's employees with big data services[197] Capital and Liabilities - The total liabilities amounted to RMB 9,942.75 billion, an increase of 8.25% from the previous year[46] - Customer deposits totaled RMB 8,155,438 million, up 8.22% from RMB 7,535,742 million in the previous year[27] - The company's capital adequacy ratio improved to 17.88%, an increase of 0.11 percentage points from the previous year[133] - The core Tier 1 capital adequacy ratio, Tier 1 capital adequacy ratio, and total capital adequacy ratio were 13.73%, 16.01%, and 17.88%, respectively, with increases of 0.05, 0.26, and 0.11 percentage points compared to the end of the previous year[163] Strategic Focus and Goals - The bank aims to strengthen its core competitiveness by focusing on retail finance, wealth management, and digitalization[26] - The company aims to optimize asset structure and increase loan disbursement to support the real economy[119] - The bank's strategy focuses on creating comprehensive value for customers, employees, shareholders, and society[141] - The bank aims to enhance risk management, cost management, and talent management to support high-quality development[142] - The company continues to innovate in retail and wholesale banking services, including digital financial solutions and wealth management products[128]

Group 1 - China Merchants Bank has readjusted its retail financial organizational structure, establishing a new Retail Customer Department, indicating a clear strategic plan for future retail financial business development [1] - The newly established Retail Customer Department will help the bank better understand the characteristics and needs of different customer groups, allowing for more precise services and products [1] Group 2 - Several small shareholders of trust companies, including Zhongcheng Trust and China Ocean Trust, are offering their shares at a 10% discount, reflecting a cold market for trust licenses [2] - The current market environment has led to many listed financial institutions trading below their net asset value, indicating a lack of confidence in the value of trust licenses [2] Group 3 - The National Financial Regulatory Administration has approved Lu Xuan's qualifications as the President and Director of Citibank China [3] - Lu Xuan was previously the Vice President and Managing Director of the Corporate Banking Division at Citibank China [3] Group 4 - Shanghai Bank has received approval for Shi Hongmin to serve as Vice Chairman and President [4] - Shi Hongmin was elected as Vice Chairman and appointed as President of Shanghai Bank in December 2023 [4]

Financial Performance - For the first nine months of 2023, the group achieved a net operating income of CNY 260.231 billion, a year-on-year decrease of 1.74%[1] - The net profit attributable to shareholders was CNY 113.890 billion, reflecting a year-on-year growth of 6.52%[1] - The non-interest net income amounted to CNY 97.945 billion, down 4.64% year-on-year[1] - The company's net interest income for the first nine months of 2023 was CNY 162.286 billion, a year-on-year increase of 0.10%, accounting for 62.36% of total operating income[19] - The net profit attributable to shareholders for the third quarter of 2023 was RMB 38.14 billion, representing a year-on-year increase of 1.70%[52] - The net income for the first nine months of 2023 was RMB 113.89 billion, showing a year-on-year increase of 6.52%[52] - The net interest income for the third quarter was RMB 81.77 billion, down 4.66% compared to the same quarter last year[52] - The total operating income for the first nine months of 2023 is RMB 258.13 million, slightly down from RMB 263.12 million in the same period of 2022, a decrease of 1.1%[91] Asset Quality and Loans - As of the end of the reporting period, the group had a non-performing loan balance of CNY 61.794 billion, an increase of CNY 3.790 billion compared to the end of the previous year[2] - The non-performing loan ratio remained stable at 0.96% compared to the end of the previous year[2] - The real estate loan balance was CNY 299.543 billion, a decrease of CNY 34.172 billion from the end of the previous year, representing 4.92% of total loans[11] - The real estate sector's non-performing loan ratio increased to 5.31%, up 1.32 percentage points from the end of the previous year[11] - The company's total loan and advance balance reached CNY 609.394 billion, with a non-performing loan balance of CNY 5.699 billion, resulting in a non-performing loan ratio of 0.94%[14] - The company's retail non-performing loan balance was CNY 28.548 billion, an increase of CNY 539 million compared to the end of last year, with a non-performing loan ratio of 0.86%[16] - The company's attention to loan quality has resulted in a decrease in the balance and proportion of attention loans, with a total attention loan balance of CNY 65.196 billion, down CNY 8.274 billion from the end of last year[13] - The company generated new non-performing loans of RMB 45.495 billion, a year-on-year decrease of RMB 0.674 billion, with a non-performing loan generation rate of 1.03%, down 0.10 percentage points year-on-year[69] Customer Deposits and Liabilities - Total liabilities reached CNY 9,646.670 billion, a growth of 5.03% year-on-year, primarily driven by an increase in customer deposits[8] - Customer deposits totaled CNY 7,980.492 billion, up 5.90% year-on-year, accounting for 82.73% of total liabilities[8] - The average interest expense for customer deposits was RMB 95.266 billion, with a cost rate of 1.62% for the first nine months of 2023[20] - The bank's total liabilities as of September 30, 2023, amount to RMB 9,646.67 million, an increase from RMB 9,184.67 million at the end of last year[94] Equity and Capital Adequacy - The group’s equity attributable to shareholders was CNY 1,012.235 billion, an increase of 7.06% from the end of the previous year[9] - The company's capital adequacy ratio was 17.38%, down 0.39 percentage points from the end of the previous year[73] - The core tier 1 capital adequacy ratio was 13.37%, a decrease of 0.31 percentage points year-on-year[73] - The core Tier 1 capital adequacy ratio under the advanced approach is 13.37%, down 0.31 percentage points from the end of last year[83] Cash Flow and Investment Activities - The net cash flow from operating activities for the first nine months of 2023 was RMB 53.65 billion, a decrease of 63.38% compared to the same period last year[52] - Cash received from investment activities for the first nine months of 2023 was 924,638 million, up from 584,567 million in the same period of 2022, representing a 58.2% increase[113] - Cash received from financing activities decreased to (36,060) million in 2023 compared to (269,872) million in 2022, showing a significant improvement in cash management[113] - Cash flow from investment activities included cash received from investment income of 72,381 million, up from 59,599 million in 2022, a 21.5% increase[113] Risk Management and Strategy - The company plans to enhance financial support for housing rentals and maintain overall stability in real estate asset quality[12] - The company's focus on risk management includes strict monitoring of project risks and the differentiation of subsidiary and group risks[12] - The company aims to strengthen risk management and improve the quality of real estate assets amid a changing market environment[12] - The bank plans to enhance risk management in key sectors and improve asset quality through targeted strategies[81] Shareholder Information - The total number of ordinary shareholders as of the report date was 593,295, all of whom are unrestricted shareholders[44] - The largest shareholder, Hong Kong Central Clearing (Agent), held 4,553,984,238 shares, accounting for 18.06% of the total share capital[54] - The second-largest shareholder, China Merchants Shipping Company, held 3,289,470,337 shares, representing 13.04% of the total share capital[54] - The total number of preferred shareholders was 16, all of whom were domestic shareholders, with no restoration of voting rights reported for the preferred shares[56]