CM BANK(SH:600036) Xin Lang Cai Jing·2025-03-26 08:22Core Viewpoint - China Merchants Bank (CMB) demonstrates stable profitability, manageable risks, and favorable dividends, with expectations for performance recovery in 2025 [1][7]. Financial Performance - In 2024, CMB reported revenue of 337.5 billion yuan, a year-on-year decline of 0.5%, and a net profit attributable to shareholders of 148.4 billion yuan, reflecting a growth of 1.2% [1][2]. - The bank's net interest income decreased by 1.6% in 2024, but showed a positive growth of 3% in Q4 2024, indicating a recovery in revenue growth [2][5]. - The cost-to-income ratio improved, contributing positively to profit growth, alongside adequate provisioning [2][3]. Loan and Deposit Growth - CMB's loan growth accelerated, with a total of over 380 billion yuan in new loans for 2024, and a target loan growth rate of 7-8% for 2025 [3][4]. - The bank's deposit costs decreased significantly, with a Q4 2024 deposit cost of only 1.40%, benefiting from a return of demand deposits [4][5]. Asset Quality - Overall asset quality remained stable, with a non-performing loan (NPL) ratio of 0.95% in Q4 2024, a slight increase of 1 basis point from the previous quarter [5][6]. - The NPL ratio for corporate loans decreased to 1.01%, while the real estate NPL ratio fell to 4.74% [6][7]. Dividend Policy - CMB's dividend payout ratio increased to 35.32% in 2024, with plans to maintain a similar ratio for the 2025 interim dividend [3][7]. Investment Outlook - The bank is expected to maintain steady performance with profit growth forecasts of 3.3%, 5.2%, and 9.6% for 2025, 2026, and 2027 respectively, with a current price-to-book ratio of 0.99 for 2025 [7].