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]

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]