2022-03-18 16:00Financial Performance - In 2021, China Merchants Bank achieved an operating income of RMB 331.3 billion, representing a year-on-year growth of 14.04%[9] - The net profit attributable to shareholders for 2021 was RMB 119.9 billion, an increase of 23.20% compared to the previous year[9] - Return on average equity (ROAE) reached 16.96%, up by 1.23 percentage points from the previous year[9] - The bank's total assets return on average (ROAA) was 1.36%, an increase of 0.13 percentage points year-on-year[9] - The company plans to allocate 10% of the audited net profit for 2021, amounting to RMB 10.98 billion, to statutory surplus reserves[8] - Operating income for 2021 reached RMB 331,253 million, an increase of 14.04% compared to 2020[37] - Net profit for 2021 was RMB 120,834 million, reflecting a growth of 23.35% year-over-year[37] - Total assets as of December 31, 2021, amounted to RMB 9,249,021 million, a 10.62% increase from the previous year[38] - Basic earnings per share for 2021 were RMB 4.61, up 21.64% from RMB 3.79 in 2020[37] Asset Quality - The non-performing loan ratio improved to 0.91%, with a provision coverage ratio of 483.87%[9] - Non-performing loan ratio fell below 1%, indicating continued asset quality optimization[17] - The non-performing loan (NPL) ratio was 0.91%, a decrease of 0.16 percentage points from the previous year[52] - The loan loss provisions increased to RMB 246,104 million, with a provision coverage ratio of 483.87%, up by 46.19 percentage points year-on-year[122] - The non-performing loan (NPL) balance was RMB 53.615 billion, a decrease of RMB 2.753 billion year-on-year, with an NPL ratio of 0.91%, down 0.16 percentage points[104] Strategic Vision and Transformation - The bank's strategic vision for the "14th Five-Year Plan" focuses on becoming a "best value-creating bank" with an emphasis on wealth management, digital operations, and open integration[11] - The company aims to enhance capabilities in wealth management, financial technology, and risk management as part of its strategic transformation[11] - The company aims to enhance its core competitiveness by implementing a 3.0 development model focused on wealth management, digital operations, and open integration[32] - The company is committed to a "light bank" strategy, emphasizing light assets, operations, management, and culture to explore weak-cycle development paths[33] - The bank emphasizes the importance of timely transformation and strategic decision-making to maintain long-term market competitiveness[11] Customer Base and Wealth Management - Retail customer base exceeded 170 million, with total assets under management (AUM) surpassing 10 trillion RMB, marking an incremental increase of over 1 trillion RMB[12] - Wealth management revenue accounted for nearly 16% of total revenue, highlighting its significance in the new business model[17] - The company aims to enhance its wealth management capabilities and digital operations as part of its 3.0 model transformation strategy[18] - The company aims to enhance its wealth management income, which includes fees and commissions from wealth management, asset management, and custody services[20] - The total number of retail customers reached 173 million, with a 29.68% year-on-year increase in customers holding wealth management products[145] Digital Transformation and Technology - The launch of digital RMB positioned the company as an officially recognized operator by the central bank[12] - The company introduced 253 new public fund custody projects, with a custody scale of CNY 406.8 billion, ranking first in the market for both the number of projects and scale[146] - The company’s digital loan operation process has achieved an online rate of 89.46%, an increase of 17 percentage points year-on-year, enhancing operational efficiency[182] - The company’s technology platform has 2,811 shared components, with 1,962 released during the reporting period, facilitating better data utilization[183] - The company’s customer service capabilities were enhanced through the introduction of the AI assistant "AI Xiao Zhao," which provides 24/7 wealth management services[181] Risk Management and Compliance - The company is building a comprehensive risk and compliance management system to support its 3.0 development model, ensuring a customer-centric risk management approach[35] - The company plans to enhance project risk monitoring and management in the real estate sector to maintain overall asset quality stability[158] - The company will closely monitor external environmental changes and maintain a prudent risk preference in its operations[171] - The company aims to maintain stable asset quality in local government financing platform business amid regulatory constraints[172] - The company has implemented differentiated credit policies in key regions, resulting in an increase in loan balances in the Yangtze River Delta, Bohai Rim, and Pearl River Delta regions[112] Awards and Recognition - In 2021, China Merchants Bank was recognized as "China's Best Bank" by EuroMoney magazine for the third consecutive year[9] - The company ranked 10th globally in brand value with $21.044 billion according to the 2021 "Global Bank Brand Value 500" list by The Banker magazine[36] - The company achieved a 14th place ranking in the 2021 Global Bank 1000 list, improving by 3 positions from the previous year, based on Tier 1 capital size[36] - The company was recognized as the "Best National Private Bank" and received multiple awards in the 2021 "China Private Banking Awards" by Asiamoney[36] - The company has been awarded the "Best Retail Bank in China" for three consecutive years, marking a historic achievement[36]