2019-03-22 16:00Customer Growth and Engagement - As of the end of 2018, the number of retail customers reached 125 million, with a combined monthly active user count of over 81 million for the "China Merchants Bank" and "Zhangshang Life" apps[12] - The cumulative user count for the "招商银行" and "掌上生活" apps reached 148 million, a growth of 43%, with monthly active users surpassing 81 million, up 47%[19] - Monthly active users (MAU) for the two apps reached 81.05 million, a 47.24% increase year-on-year, with 27.11% and 44.21% of traffic coming from non-financial services[181] - The number of retail customers reached 300 million, with savings and retail customer counts at 100 million and 125 million, increasing by 17% and 18% respectively[19] Financial Performance - The net profit for 2018 was 75.232 billion RMB, with a proposed cash dividend of 0.94 RMB per share[4] - The net profit attributable to shareholders reached CNY 80.56 billion, growing by 14.84% year-on-year[19] - In 2018, the company achieved an operating income of CNY 248.55 billion, a year-on-year increase of 12.52%[19] - The company reported a total pre-tax profit of RMB 106,497 million, up from RMB 90,680 million in the previous year[168] Risk Management and Asset Quality - The bank's non-performing loan ratio and non-performing loan balance both decreased, reflecting enhanced risk management[12] - The non-performing loan ratio improved to 1.36%, down from 1.61% in 2017, a decrease of 0.25 percentage points[52] - The provision coverage ratio for non-performing loans increased significantly to 358.18%, up by 96.07 percentage points from 262.11% in 2017[52] - The company reported a decrease in non-performing loan balance and ratio, indicating improved asset quality[19] Technology and Innovation - The board decided to increase the "Financial Technology Innovation Project Fund" from 1% of the previous year's operating income, emphasizing a commitment to innovation[13] - The bank is focusing on technology and data talent acquisition to support its innovation strategy, particularly in AI, big data, blockchain, and cloud computing[13] - The company aims to transform its business model from capital-centric to technology and talent-centric[19] - The company is committed to increasing investment in financial technology to enhance operational efficiency and customer experience[19] Social Responsibility - In 2018, the bank issued 20.85 billion RMB in targeted poverty alleviation loans, demonstrating its commitment to social responsibility[14] - The company is dedicated to social responsibility, engaging in poverty alleviation efforts in targeted regions[20] Strategic Focus and Goals - The bank aims to enhance its customer service ecosystem and improve customer experience, driving double-digit growth in both operating income and net profit[12] - The company plans to deepen its strategic transformation in 2019, focusing on customer and technology as key points[34] - The company aims to achieve a dynamic balance of "quality, efficiency, and scale" while building a "light bank" system and advancing digitalization and internationalization[35] Awards and Recognition - The company has been recognized as the "Best Retail Bank in Asia-Pacific" at the Asian Banker International Awards in 2018[45] - The company reported a brand value of $16.673 billion, ranking 11th globally in the Banker magazine's list of top bank brands[43] Operational Efficiency - The company is focusing on a digital transformation that shifts from a transaction-based approach to a customer journey perspective, enhancing user experience across all services[27] - The company is building a robust digital business platform to empower online customer service and frontline managers, aiming to fundamentally improve customer experience[27] - The company has automated 80% of its bond credit rating models, improving review efficiency by 30% compared to offline processes[184] Financial Metrics - Total assets as of December 31, 2018, amounted to RMB 6,745,729 million, representing a 7.12% increase from RMB 6,297,638 million at the end of 2017[48] - Customer deposits totaled RMB 4,400,674 million, an increase of 8.28% from RMB 4,064,345 million in 2017[48] - The capital adequacy ratio improved to 15.68%, an increase of 0.20 percentage points from 15.48% in 2017[53] - The net interest margin rose to 2.57%, an increase of 0.14 percentage points compared to 2.43% in 2017[51]