CM BANK(SH:600036) Xin Lang Cai Jing·2025-05-06 00:25Core Viewpoint - In Q1 2025, China Merchants Bank reported a decline in both operating income and net profit, indicating a slowdown in performance compared to the previous year [1][2]. Financial Performance - In Q1 2025, the bank achieved operating income of 83.751 billion yuan, a year-on-year decrease of 3.09%, with the decline rate widening by 2.61 percentage points compared to 2024 [1][2]. - The net profit attributable to shareholders was 37.286 billion yuan, down 2.08% year-on-year, with a decline of 3.3 percentage points compared to 2024 [1][2]. - The average return on total assets and average return on equity were 1.21% and 14.13%, respectively, both showing year-on-year declines of 0.14 percentage points and 1.95 percentage points [2]. Revenue Structure - Net interest income for Q1 2025 was 52.996 billion yuan, reflecting a year-on-year growth of 1.92%, continuing the growth trend from Q4 2024 [2]. - Net fee and commission income was 19.696 billion yuan, down 2.51% year-on-year, with wealth management fees increasing by 10.45% [2]. - The revenue from agency wealth management surged by 39.47% due to growth in agency scale and product structure optimization, while agency insurance income continued to decline due to falling insurance sales [2]. - Other net income was 11.059 billion yuan, down 22.19% year-on-year, primarily impacted by rising market interest rates leading to a decrease in the fair value of bond and fund investments [2]. Cost Management - The net interest margin for Q1 2025 was 1.91%, down 11 basis points year-on-year and 3 basis points quarter-on-quarter, with the decline rate narrowing [3]. - The deposit cost rate decreased by 34 basis points year-on-year to 1.29%, positively affecting the net interest margin due to lower deposit rates and regulatory restrictions on high-interest deposit solicitation [3]. Asset Quality - As of the end of Q1 2025, the non-performing loan ratio was 0.94%, a slight improvement of 0.01 percentage points from the end of the previous year [3]. - The non-performing loan ratio for corporate loans improved to 0.95%, while the retail loan non-performing ratio increased to 1.01%, indicating ongoing pressure on retail loan asset quality [3]. - The provision coverage ratio was 410.03%, down 1.95 percentage points from the end of the previous year [3]. Investment Outlook - The bank maintains a "buy" rating, with a dividend payout ratio exceeding 30% and a projected cash dividend of 2 yuan per share for 2024, resulting in a dividend yield of 4.91% based on the closing price on April 30 [4]. - The estimated net asset value per share for 2025 is 45.25 yuan, with the current stock price corresponding to a price-to-book ratio of 0.90 times [4].