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]

Social Responsibility and Community Engagement - The company invested a total of 44.61 million yuan in 49 poverty alleviation projects in Yunnan's Wuding and Yongren counties during the reporting period[1]. - The total amount donated for public welfare and charity reached 47.84 million yuan, contributing to social equity and improving people's livelihoods[2]. - The "Small Points, Micro Public Welfare" platform has accumulated donations of 586 million points, resulting in 2.74 million free lunches for children and 334,900 public welfare books[2]. - The company has actively engaged in volunteer services and established the "Zhaohang Public Welfare Alliance" to promote social responsibility[2]. Corporate Governance and Management - The company held 10 board meetings during the reporting period, reviewing 62 proposals and listening to 11 reports[7]. - A total of 1 shareholders' meeting was convened, approving 10 proposals including the 2022 annual financial report and the profit distribution plan[8]. - The company has established a multi-level talent training system, enhancing training effectiveness and covering various employee growth needs[3]. - The company has implemented a gender equality principle in salary management and recruitment, ensuring equal opportunities for all employees[3]. - The company organized two employee representative meetings, enhancing employee participation in management and decision-making[3]. - The company continues to enhance its corporate governance mechanisms to support sustainable development and prudent risk management[30]. - The company’s governance structure includes a clear division of responsibilities among the shareholders' meeting, board of directors, supervisory board, and senior management[30]. - The company’s independent directors' terms are limited to a maximum of six years, affecting the tenure of certain directors[15]. Financial Performance - The company reported net profit of RMB 76,437 million for the six months ended June 30, 2023, an increase from RMB 70,002 million in the same period of 2022, representing an increase of approximately 9.4%[82]. - Total operating income for the first half of 2023 was RMB 176,909 million, slightly down from RMB 177,621 million in the previous year, indicating a decrease of about 0.4%[82]. - Net interest income increased to RMB 108,996 million, compared to RMB 107,692 million in the prior year, reflecting a growth of approximately 1.2%[82]. - The company’s basic and diluted earnings per share rose to RMB 2.93, up from RMB 2.67 in the same period last year, marking an increase of about 9.7%[82]. - The company’s total comprehensive income for the period was RMB 78,238 million, compared to RMB 71,851 million in the same period of 2022, indicating an increase of approximately 8.3%[83]. Asset and Liability Management - The company reported a total asset scale of 10,006,843 million in the first half of 2023[27]. - The total liabilities as of June 30, 2023, were RMB 9,753,923 million, up from RMB 9,184,674 million, indicating an increase of 6.20%[84]. - Total assets as of June 30, 2023, amounted to RMB 10,739,836 million, an increase from RMB 10,138,912 million as of December 31, 2022, representing a growth of 5.93%[84]. - Loans and advances increased to RMB 6,096,979 million, up from RMB 5,807,154 million, reflecting a growth of 4.98%[84]. - Customer deposits rose to RMB 8,098,272 million, compared to RMB 7,590,579 million, marking an increase of 6.67%[84]. Shareholder and Equity Information - The company reported that as of the end of the reporting period, Cai Jin held 133,150 shares, including 128,600 A-shares and 4,550 H-shares[12]. - The total number of shares issued is 6,752,746,952, with 32.73% of shares being A shares and 17.57% being H shares[47]. - The total number of preferred shareholders is 17, all of whom are domestic preferred shareholders[54]. - The company did not distribute any preferred stock dividends during the reporting period[57]. - The voting rights of the issued preferred shares have not been restored as of the end of the reporting period[59]. Risk Management and Compliance - The company is actively managing risks and has outlined its risk management strategies in the report[144]. - The financial report for the first half of 2023 has not been audited, and it includes forward-looking statements based on current plans and estimates[146]. - The company confirmed that there were no penalties imposed by securities regulatory authorities on the personnel listed in the report over the past three years[13]. Changes in Management - The company appointed Sun Yunfei as the vice chairman of the board in January 2023, pending approval from the national financial regulatory authority[15]. - In March 2023, the company elected Cao Jian as a staff supervisor, while Wang Wanqing stepped down due to age reasons[16]. - The company appointed Peng Jiawen as the financial officer in February 2023, following internal restructuring[17]. - The company’s management changes included the retirement of Wang Jianzhong and Shi Shunhua in February 2023 due to age[17]. - Zhao Weipeng was appointed as the secretary of the disciplinary committee in August 2023[17]. Strategic Focus and Future Planning - The company has focused on sustainable development, reviewing the 2022 Sustainable Development Report and planning for 2023[5]. - The company has restructured its board committee to enhance its focus on ESG initiatives, renaming the "Board Strategic Committee" to "Board Strategic and Sustainable Development Committee"[141]. - The board has reviewed multiple reports related to sustainable development and financial inclusion, ensuring the execution of these strategies[141]. - The company emphasizes its commitment to social responsibility, aiming for high-quality, efficient, equitable, and sustainable development[141].

Financial Performance - For the first half of 2023, the operating income was RMB 178,465 million, a decrease of 0.34% compared to RMB 179,077 million in the same period of 2022[16]. - The pre-tax profit increased by 8.68% to RMB 90,884 million from RMB 83,624 million year-on-year[16]. - The net profit attributable to shareholders was RMB 75,752 million, reflecting a growth of 9.12% compared to RMB 69,420 million in the previous year[16]. - The group achieved a net operating income of CNY 178.465 billion, a decrease of 0.34% year-on-year[20]. - The net profit attributable to shareholders was CNY 75.752 billion, an increase of 9.12% year-on-year[20]. - The group achieved a pre-tax profit of RMB 90.884 billion, an increase of 8.68% year-on-year, with an effective tax rate of 15.90%, down by 0.39 percentage points[44]. - Net profit for the period was RMB 76.44 billion, up 9.18% from RMB 70.00 billion in the same period last year[64]. Assets and Liabilities - The total assets as of June 30, 2023, reached RMB 10,739,836 million, an increase of 5.93% from RMB 10,138,912 million at the end of 2022[16]. - The total liabilities of the group reached RMB 9,753.923 billion, an increase of 6.20% compared to the end of the previous year, primarily due to steady growth in customer deposits[90]. - The total amount of investment securities and other financial assets was RMB 3.017 billion as of June 2023, up from RMB 2.787 billion in December 2022[83]. - The total amount of bonds issued by the company was RMB 50,506 million, with a total issuance during the period of RMB 6,153 million[161]. Customer Deposits and Loans - Customer deposits totaled RMB 8,030,232 million, representing a growth of 6.56% from RMB 7,535,742 million at the end of 2022[16]. - The total loans and advances amounted to RMB 6,355,439 million, up by 5.02% from RMB 6,051,459 million at the end of 2022[16]. - The average balance of customer deposits was RMB 7,828.799 billion, with interest expenses of RMB 62.455 billion, resulting in a cost rate of 1.61%[50]. - The amount of trade financing transactions reached RMB 5,846.47 billion, reflecting a year-on-year growth of 56.17%[158]. Income and Expenses - Net interest income reached CNY 108.996 billion, growing by 1.21% year-on-year[20]. - Non-interest net income was CNY 69.469 billion, a decrease of 2.68% year-on-year[20]. - The cost-to-income ratio increased to 29.07%, up by 1.31 percentage points year-on-year[39]. - Total operating expenses increased by 4.44% year-on-year to RMB 56.372 billion, with employee expenses rising by 4.99% to RMB 35.968 billion[78]. Risk Management - The company aims to enhance its risk management capabilities and maintain asset quality stability by focusing on key sectors and implementing differentiated management strategies[185]. - The company has implemented a comprehensive risk management system for large exposure, ensuring compliance with regulatory requirements for non-industry single and group clients[189]. - The company employs various indicators to manage interest rate risk, including Value at Risk (VaR) with a confidence level of 99% and a holding period of 10 days, covering all interest rate risk factors[192]. - Regular measurement and analysis of foreign exchange risk exposure are conducted, with adjustments made based on exchange rate trends to mitigate risks[197]. Digital Transformation and Technology - The company continues to invest in digital transformation and technology infrastructure to support its operations[78]. - The cumulative user count of the China Merchants Bank App reached 197 million, with a peak daily active user count of 19.58 million and a monthly active user count of 71.30 million[127]. - The company’s financial technology capabilities have been enhanced, leading to improved risk management and investment decision-making processes[121]. Branch Performance - The Hong Kong branch achieved a net operating income of 1.92 billion HKD during the reporting period[133]. - The New York branch reported a net operating income of 45.90 million USD, focusing on cross-border financial services between China and the U.S.[134]. - The Singapore branch generated a net operating income of 11.46 million USD, emphasizing cross-border finance and wealth management services[135]. Support for SMEs - The company has supported 23,783 small and medium-sized enterprises with financing, with a cumulative loan amount of RMB 313.198 billion[163]. - The company has implemented 261 "one-stop service" projects, extending services to 28,271 small and medium-sized enterprises[163].

Loan and Asset Quality - As of the end of the reporting period, the total loan and advance balance was RMB 5,720,708 million, with a non-performing loan balance of RMB 54,214 million, resulting in a non-performing loan ratio of 0.95%[13] - The non-performing loan balance for retail loans was RMB 28,009 million, with a non-performing loan ratio of 0.90%[13] - The company reported a total of RMB 2,097,114 million in loans, with a non-performing loan balance of RMB 26,205 million, resulting in a non-performing loan ratio of 1.25%[13] - The company’s credit card loans amounted to RMB 884,394 million, with a non-performing loan balance of RMB 15,648 million, leading to a non-performing loan ratio of 1.77%[13] - The company’s consumer loans totaled RMB 202,225 million, with a non-performing loan balance of RMB 2,191 million, resulting in a non-performing loan ratio of 1.08%[13] - The non-performing loan balance was RMB 60.302 billion, an increase of RMB 2.298 billion compared to the end of the previous year, with a non-performing loan ratio of 0.95%, down 0.01 percentage points[40] - The retail loan segment accounted for 53.32% of the total loan balance, with a non-performing loan balance of RMB 28.28 billion and an NPL ratio of 0.89%[65] - The company's loan loss provision balance was RMB 262.03 billion, an increase of RMB 8.61 billion compared to the end of the previous year, with a provision coverage ratio of 463.19%[68] - The company generated new non-performing loans of RMB 16,023 million in the first quarter of 2023, a year-on-year increase of RMB 587 million, with a non-performing loan generation rate of 1.09%, down 0.07 percentage points year-on-year[115] Financial Performance - The net profit attributable to shareholders was RMB 38.839 billion, a year-on-year increase of 7.82%[44] - For Q1 2023, the group achieved a net operating income of RMB 90.625 billion, a year-on-year decrease of 1.49%[77] - The total net profit for Q1 2023 was CNY 39.226 billion, compared to CNY 36.309 billion in Q1 2022, representing an increase[106] - The bank's pre-tax profit for Q1 2023 was RMB 46,881 million, an increase of 5.7% compared to RMB 44,367 million in Q1 2022[128] - The total operating income decreased to RMB 89,832 million in Q1 2023, down 1.9% from RMB 91,415 million in Q1 2022[124] - Net interest income for Q1 2023 was RMB 55,409 million, a slight increase of 1.7% compared to RMB 54,464 million in Q1 2022[124] - The group achieved non-interest income of RMB 35.216 billion in Q1 2023, a year-on-year decrease of 6.18%, accounting for 38.86% of total operating income[43] - Net fee and commission income was RMB 25.079 billion, down 12.60% year-on-year, while other non-interest income increased by 14.67% to RMB 10.137 billion, mainly due to increased bond and fund investment income[43] Capital Adequacy and Structure - The core Tier 1 capital adequacy ratio under the advanced approach was 13.41%, while the total capital adequacy ratio was 17.39%, reflecting a decrease due to accelerated asset scale investment in Q1 2023[17] - The core tier 1 capital net amount was CNY 735.333 billion, an increase of 4.89% from CNY 701.033 billion at the end of the previous year[100] - The tier 1 capital adequacy ratio was 15.03%, a decrease of 0.39 percentage points from 15.42% at the end of the previous year[100] - The company's leverage ratio at the end of 2022 was 7.95%, indicating a stable capital structure[18] - The company's core tier 1 capital adequacy ratio was 12.98%, tier 1 capital adequacy ratio was 15.03%, and total capital adequacy ratio was 17.15% as of the end of the reporting period[119] Customer Deposits and Assets - Customer deposits increased to RMB 7,832,912 million, compared to RMB 7,590,579 million at the end of 2022[26] - Customer deposits totaled RMB 7,771.878 billion, reflecting a year-on-year growth of 3.13%[51] - The total assets and equity of the bank reached RMB 10,508,752 million, up from RMB 10,138,912 million at the end of 2022[26] - Total assets reached RMB 10,508.752 billion as of March 31, 2023, an increase of 3.65% from the end of the previous year[44] - The total assets of the group reached RMB 12,013.88 billion, reflecting a growth of 3.84% compared to the end of the previous year[70] Operating Expenses and Efficiency - Operating expenses increased by 4.65% year-on-year to RMB 27.323 billion, with employee expenses rising by 2.92%[54] - The cost-to-income ratio was 27.59%, an increase of 1.49 percentage points year-on-year[54] - The return on average total assets (ROAA) was 1.50%, a decrease of 0.04 percentage points year-on-year[77] - The average return on equity (ROAE) was 18.43%, down by 0.81 percentage points compared to the previous year[77] - The weighted average return on equity for ordinary shareholders was 18.43%, down 0.81 percentage points from the previous year[44] Risk Management and Strategy - The bank's strategy focuses on balanced development in quality, efficiency, and scale, with steady growth in asset size and net profit[39] - The company aims to strengthen risk management in the real estate sector by closely monitoring market dynamics and differentiating risks between project subsidiaries and the holding company[62] - The company will enhance risk monitoring in key areas such as real estate and large group clients, and implement targeted control measures[97] - The company aims to maintain overall asset quality stability while increasing the efficiency of non-performing asset disposal[97] - The company plans to continue supporting rigid and improved housing demand while enhancing financial support for housing rentals[62] - The company will focus on selecting residential projects with self-repayment capabilities and commercial sustainability to maintain stable real estate financing[62]

Capital Adequacy and Financial Ratios - As of December 31, 2022, the core tier 1 capital ratio was 13.68%, up 1.02 percentage points from the previous year[4] - The bank's total capital adequacy ratio stood at 17.77%, an increase of 0.29 percentage points from the previous year[4] - The bank's leverage ratio was 7.95%, a slight decrease of 0.05 percentage points compared to the previous year[4] - The non-performing loan ratio remained stable at 0.96%, with a provision coverage ratio of 450.79%, indicating strong risk compensation capabilities[158] - The average return on equity (ROAE) for the bank reached 17.06%, with a non-performing loan ratio maintained below 1% and a provision coverage ratio of 450.79%[179] Profit and Revenue Growth - The net profit before tax for retail banking was RMB 94.18 billion, an increase from RMB 77.71 billion in 2021, representing a growth of 21.14%[9] - Operating net income for 2022 was CNY 344.74 billion, a year-on-year increase of 4.02%, while net profit attributable to shareholders rose by 15.08% to CNY 138.01 billion[158] - Retail financial business pre-tax profit reached CNY 92.706 billion, a year-on-year increase of 20.48%[36] - Wholesale financial business pre-tax profit was CNY 62.394 billion, a year-on-year increase of 1.70%[44] Asset Management and Loans - The total assets under management for wealth management services reached RMB 7.7 trillion, a year-on-year increase of 24.78%[13] - The total amount of retail microloans reached CNY 629.628 billion, a year-on-year increase of 12.32%, accounting for 11.01% of total loans and advances, up 0.34 percentage points from the previous year[30] - The total amount of corporate loans reached CNY 2.097114 trillion, an increase of 11.42% year-over-year, with a non-performing loan ratio of 1.25%, down 0.06 percentage points[73] - The balance of loans to large enterprises reached CNY 931.503 billion, up 13.46% year-on-year, with a non-performing loan ratio of 0.90%, down 0.24 percentage points[49] Risk Management and Provisions - As of the reporting period, the company's loan loss provision balance was CNY 253.413 billion, an increase of CNY 14.228 billion from the previous year, with a provision coverage ratio of 467.43%, down 23.23 percentage points year-on-year[23] - The bank has established a "six-full" risk management system to enhance its ability to manage cyclical risks effectively[152] - The bank's total provisions for bad debts increased to RMB 45.157 billion in 2022, compared to RMB 37.020 billion in 2021[136] Customer Growth and Engagement - The number of retail customers reached 184 million, an increase of 6.36% compared to the end of the previous year[37] - The company achieved a year-on-year increase of 5.80% in cross-border business clients, reaching a total of 78,877 clients by the end of the reporting period[47] - The "掌上生活" app accumulated 137 million users, with a peak daily active user count of 6.72 million during the reporting period[115] Digital Transformation and Technology - Continuous investment in financial technology is prioritized to support business transformation and improve operational efficiency[156] - The bank's digital transformation efforts included the successful migration to cloud services, enhancing operational efficiency and customer service capabilities[180] - The company has implemented a digital RMB service across multiple channels, enhancing customer service capabilities since its launch on January 4, 2022[98] Wealth Management and Financial Services - The company plans to enhance its wealth management services and digital transformation to improve customer experience and operational efficiency[40] - The company has established over 110 product series to meet diverse customer needs, including the launch of "Riri Bao" in collaboration with China Merchants Bank[85] - The bank's wealth management capabilities improved, managing retail customer AUM of 12.1 trillion yuan, with over 43 million clients holding wealth management products[187] Corporate Strategy and Future Outlook - The bank aims to maximize comprehensive value for customers, employees, shareholders, partners, and society by focusing on retail banking, corporate finance, investment banking, and wealth management[166] - The bank plans to strengthen its existing advantages while developing new growth areas to achieve high-quality development[166] - The company aims to enhance management levels and maintain a dynamic balance of "quality, efficiency, and scale" for long-term stable returns to investors[193]

Retail Customer Base and Wealth Management - Retail customer base reached 184 million, with retail business revenue accounting for 55.52% of total revenue[1] - Total assets under management (AUM) for retail customers reached 12.1 trillion yuan, with over 43 million clients holding wealth management products[1] - The company’s wealth management product holding customer count reached 43.1293 million, a year-on-year increase of 14.14%, while the retail wealth management product balance grew by 4.48% to CNY 31,384.36 billion[178] - The number of private banking clients exceeded 130,000, with total assets under management reaching 3.79 trillion yuan, an increase of 11.74%[94] - The wealth management platform "Zhaocaihao" attracted 19.73 million followers and served over 413 million customer interactions during the reporting period[119] - The company introduced products from 10 peer wealth management subsidiaries and 139 quality asset management institutions to enhance service offerings[119] Financial Performance - The group achieved net interest income of RMB 218.24 billion in 2022, an increase of 14.3% compared to RMB 203.92 billion in 2021[22] - The group reported a pre-tax profit of RMB 165.11 billion, up 11.4% from RMB 148.17 billion in the previous year[22] - The net profit attributable to shareholders was RMB 138.01 billion, an increase of 15.1% from RMB 119.92 billion in 2021[22] - Non-interest income for the group was 126.505 billion yuan, a year-on-year decrease of 0.77%, accounting for 36.70% of total operating income, down 1.77 percentage points year-on-year[128] - The group's wealth management income was 49.151 billion yuan, a year-on-year decrease of 6.10%[128] Loan and Asset Quality - Non-performing loans totaled 58.004 billion yuan, with a non-performing loan ratio of 0.96%, an increase of 0.05 percentage points from the previous year[21] - The non-performing loan (NPL) balance for retail loans was RMB 28.04 billion, an increase of RMB 3.91 billion, resulting in an NPL ratio of 0.89%, up 0.08 percentage points from the previous year[57] - The company’s total loans and advances amounted to RMB 6,051,459 million, with a non-performing loan amount of RMB 58,004 million, leading to a non-performing loan ratio of 0.96%[60] - The overall non-performing loan (NPL) rate for retail loans was 0.90%, with a focus loan rate of 1.42% and an overdue loan rate of 1.50%[138] - The company reported a consumer credit non-performing loan amount of CNY 17.839 billion, with a non-performing loan rate of 1.64%[141] Digital Transformation and Innovation - The company invested 14.168 billion yuan in information technology, a year-on-year increase of 6.60%, accounting for 4.51% of operating net income[98] - The technology platform has 4,655 shared components, and over 6,500 applications have been released through the low-code development system by the end of the reporting period[124] - The online service rate for customer base reached 95.65%, with financing business online rate increasing from 67.26% to 82.14%[99] - The monthly active users (MAU) of the招商銀行App and掌上生活App reached 111 million, with 24.39 million customers purchasing "朝朝寶," resulting in a total holding amount of 205.568 billion yuan[122] Risk Management and Regulatory Compliance - The company emphasizes a risk management system covering all customers, assets, risks, institutions, processes, and elements to enhance risk control capabilities[125] - The company continues to meet additional regulatory requirements, maintaining high levels of capital adequacy and liquidity[147] - The core Tier 1 capital adequacy ratio was 13.68%, up 1.02 percentage points from the previous year[66] - The total capital adequacy ratio was 17.77%, an increase of 0.29 percentage points compared to the previous year[66] Strategic Focus and Future Plans - The company aims to enhance capabilities in wealth management, fintech, and risk management to drive sustainable development[1] - The company plans to focus on green finance, inclusive finance, and technology finance to enhance asset quality and meet diverse investor needs[107] - The company aims to maintain stable growth in retail loans in 2023, with an expected increase in growth rate compared to 2022[135] - The company will focus on green economy, manufacturing, inclusive finance, and technology finance for credit investment in 2023[135]

Financial Performance - Net profit attributable to shareholders for Q3 2022 was RMB 37,502 million, representing a year-on-year growth of 15.52%[5] - Operating income for Q3 2022 was RMB 85,765 million, reflecting a 3.76% increase compared to the same period last year[5] - For the first nine months of 2022, the group achieved operating net income of RMB 264.84 billion, a year-on-year increase of 5.31%[18] - The net profit attributable to shareholders for the same period was RMB 106.92 billion, up 14.21% year-on-year[18] - The pre-tax profit for the first nine months of 2022 was RMB 129,384 million, an increase from RMB 116,656 million in the same period of 2021, representing a growth of 10.81%[51] - The company reported net interest income of RMB 162.13 billion for the first nine months of 2022, up 7.91% from RMB 150.64 billion in the same period of 2021[47] Assets and Liabilities - Total assets as of September 30, 2022, reached RMB 9,707,111 million, an increase of 4.95% compared to the end of 2021[5] - The total equity attributable to shareholders was RMB 919,582 million, up 7.08% from the end of 2021[5] - As of September 30, 2022, total liabilities increased to RMB 8,779,344 million from RMB 8,383,340 million at the end of 2021, representing a growth of 4.73%[50] - Customer deposits rose significantly to RMB 7,141,484 million, up from RMB 6,385,154 million, marking an increase of 11.85%[50] - The total loans and advances amounted to RMB 5,994.37 billion, an increase of 7.62% year-on-year[18] Cash Flow - The net cash flow from operating activities for the first nine months of 2022 was RMB 146,494 million, a significant increase of 77.82% year-on-year, primarily due to an increase in customer deposits[6] - The cash flow from investing activities showed a net outflow of RMB 273,196 million for the first nine months of 2022, compared to RMB 68,373 million in the same period of 2021, indicating a significant increase in investment expenditures[52] Shareholder Information - The number of ordinary shareholders as of the report date was 637,594, with 608,183 being A-share shareholders and 29,411 being H-share shareholders[8] - The top shareholder, Hong Kong Central Clearing (Agent), holds 4,553,007,721 shares, representing 18.05% of total equity, an increase of 601,406 shares from the previous year[9] - There are no known relationships or concerted actions among the top shareholders[10] - The company has maintained a stable shareholder structure with no significant changes in the top shareholders' holdings[10] Risk Management - The company will continue to strengthen risk management measures and adjust the structure of real estate clients and projects in response to the evolving risk landscape[29] - The company aims to maintain a focus on high-quality clients and projects while managing risks associated with high-leverage real estate clients[29] - The company aims to maintain stable retail loan asset quality while enhancing risk management measures and adjusting asset structures[35] Capital Ratios - The company's core tier 1 capital ratio under the advanced approach is 12.85%, an increase of 0.19 percentage points from 12.66% at the end of 2021[41] - The total capital ratio is 17.17%, down 0.31 percentage points from 17.48% at the end of 2021[41] Non-Performing Loans - The non-performing loan balance was RMB 57.09 billion, with a non-performing loan ratio of 0.95%, up 0.04 percentage points from the end of the previous year[18] - The balance of retail loans was RMB 3,112.476 billion, accounting for 55.00% of total loans, with a non-performing loan balance of RMB 25.747 billion and an NPL ratio of 0.83%[31] - The company generated new non-performing loans of RMB 46.17 billion in the first nine months of 2022, a year-on-year increase of RMB 10.97 billion, with an annualized NPL generation rate of 1.13%[36] Customer Base - As of the end of the reporting period, the company had 182 million retail customers, an increase of 5.20% compared to the end of the previous year[46] - The total assets under management (AUM) for retail customers reached RMB 11,959.58 billion, an increase of RMB 1,200.41 billion, or 11.16% from the end of the previous year[46] - The number of high-net-worth clients (assets over RMB 500,000) increased to 4.0945 million, up 11.51% year-over-year, with total AUM for these clients at RMB 9,760.39 billion, a growth of 10.46%[46]

Financial Performance - The company reported a mid-year financial performance with no profit distribution or capital reserve conversion to share capital for 2022[4]. - The company achieved operating net income of RMB 179.08 billion, a year-on-year increase of 6.07%[14]. - Net profit attributable to shareholders reached RMB 69.42 billion, reflecting a growth of 13.52% compared to the previous year[14]. - Total assets amounted to RMB 9,724.996 billion, an increase of 5.15% from the end of the previous year[8]. - Total loans and advances increased to RMB 5,931.807 billion, up by 6.49% year-on-year[8]. - Customer deposits rose to RMB 7,037.185 billion, marking a significant increase of 10.87% from the previous year[8]. Risk Management - The report emphasizes the importance of risk management, detailing major risks and corresponding mitigation measures[3]. - The company is focusing on risk control in key areas such as real estate and local government financing platforms[76]. - The company will enhance risk monitoring and management in key areas, including real estate and large corporate clients, to maintain overall asset quality stability[139]. Governance and Compliance - The board meeting held on August 19, 2022, included 13 directors and 8 supervisors, confirming compliance with relevant regulations[4]. - The company operates under the regulatory oversight of the China Banking and Insurance Regulatory Commission and the China Securities Regulatory Commission[2]. - The company has a comprehensive governance structure, including legal and accounting advisors from both domestic and international firms[6]. Financial Ratios and Metrics - The annualized return on average total assets (ROAA) was 1.46%, up by 0.04 percentage points year-on-year[11]. - The annualized return on average equity (ROAE) for ordinary shareholders was 18.07%, an increase of 0.01 percentage points compared to the previous year[11]. - The non-performing loan ratio increased to 0.95%, up by 0.04 percentage points from the previous year[11]. - The provision coverage ratio decreased to 454.06%, down by 29.81 percentage points year-on-year[11]. - The company maintained a capital adequacy ratio of 16.80%, a decrease of 0.68 percentage points from the end of the previous year[11]. Income and Expenses - Operating expenses increased to RMB 53.98 billion, a rise of 6.65% year-on-year, with employee expenses accounting for RMB 34.26 billion, up 9.35%[39]. - Interest income reached RMB 172.861 billion, up 8.55% year-on-year, primarily due to the expansion of interest-earning assets[18]. - Interest expenses totaled RMB 65.169 billion, an increase of 8.79% year-on-year, driven by the growth of interest-bearing liabilities and rising costs[23]. - Net interest income for the period was RMB 107.692 billion, reflecting an 8.41% year-on-year growth[29]. Non-Interest Income - Non-interest net income reached RMB 71.39 billion, representing a year-on-year growth of 2.73%[36]. - Fee and commission income totaled RMB 53.41 billion, with wealth management fees decreasing by 8.13% year-on-year[36]. - Asset management fees increased by 32.84% year-on-year, amounting to RMB 6.34 billion[36]. Loans and Advances - The total amount of loans and advances reached RMB 5,931.81 billion, with a total NPL of RMB 56.39 billion, resulting in an overall NPL ratio of 0.95%[77]. - The small and micro enterprise loan balance was RMB 609.81 billion, increasing by 8.53% compared to the previous year[73]. - The real estate sector loan balance was RMB 397.24 billion, with an NPL ratio of 2.82%, reflecting increased risk exposure[75]. Customer Deposits - The average balance of core deposits was CNY 5,635.73 billion, an increase of 12.64% year-on-year, accounting for 87.15% of the average daily customer deposits[131]. - The average daily balance of demand deposits accounted for 62.24% of total customer deposits, a decrease of 2.21 percentage points year-on-year, attributed to economic pressures and shifts in investment behavior[66]. Technology and Innovation - The company continues to invest in financial technology to enhance operational efficiency and digital capabilities[39]. - The overall cloud migration progress exceeded 90%, with the mainframe cloud migration development work nearly completed, marking a significant shift to cloud services[121]. - The company launched 203 new financial technology innovation projects and brought 165 new projects online, totaling 2,868 projects initiated and 2,126 projects online by the end of the reporting period[157]. Customer Base and Services - The number of retail customers reached 178 million, a year-on-year increase of 2.89%, with 4.02 million customers classified as "Golden Sunflower" or above, representing a growth of 9.58%[162]. - The company provided enterprise annuity trustee and account management services to 7,708 corporate clients, with a total scale of CNY 152.99 billion[176]. - The company supported 15,899 small and medium-sized enterprises with a total loan amount of CNY 208 billion under the "National Service One" model[156].