Hu Xiu·2025-05-08 02:47Core Viewpoint - The performance of A-share listed banks in 2024 shows a divergence among the top three joint-stock banks, with China Merchants Bank experiencing revenue decline while Industrial Bank and CITIC Bank achieved growth in both revenue and net profit [1][3][18]. Group 1: Financial Performance Comparison - China Merchants Bank reported an asset scale of 12.15 trillion with a growth rate of 10.19%, but its revenue decreased by 0.48% to 337.49 billion, and net profit increased by 1.22% to 148.39 billion [2][3]. - Industrial Bank's asset scale reached 10.51 trillion, with a growth rate of 3.44%, revenue of 212.23 billion (up 0.66%), and net profit of 77.21 billion (up 0.12%) [2][3]. - CITIC Bank's asset scale was 9.53 trillion, with a growth rate of 5.28%, revenue of 213.65 billion (up 3.76%), and net profit of 68.58 billion (up 2.33%) [2][3]. Group 2: Market Position and Strategy - The top three banks—China Merchants Bank, Industrial Bank, and CITIC Bank—are positioned as leaders in the joint-stock banking sector, each with unique strengths: China Merchants Bank excels in retail and wealth management, while Industrial Bank and CITIC Bank focus on corporate business and investment banking [1][3][29]. - The competitive landscape is shifting, with the top three banks solidifying their positions, while other banks like Pudong Development Bank and Minsheng Bank struggle with performance [1][32][39]. Group 3: Revenue and Profitability Trends - The net interest margin for China Merchants Bank decreased by 17 basis points to 1.98%, while Industrial Bank and CITIC Bank saw smaller declines of 11 and 1 basis points, respectively [10][28]. - Fee and commission income for China Merchants Bank fell significantly by 14.28% to 72.09 billion, while Industrial Bank and CITIC Bank experienced smaller declines of 13.18% and 3.96% [17][28]. Group 4: Business Structure and Risk Exposure - The shift in the banking sector shows that banks with a higher proportion of corporate loans, like Industrial Bank and CITIC Bank, are less affected by the downturn in retail banking, which has seen increased bad debts [24][25]. - China Merchants Bank's reliance on retail banking has led to greater exposure to risks, as evidenced by rising non-performing loans and declining loan yields [22][27]. Group 5: Future Outlook - The competition among the top three banks is expected to intensify, with each bank focusing on its core strengths while navigating the challenges posed by the economic environment [31][39]. - Despite current challenges, China Merchants Bank maintains a strong overall position due to its substantial asset base and superior key metrics compared to its peers [27][36].