3 6 Ke·2025-10-23 23:41Core Viewpoint - China Merchants Bank (CMB) is facing pressure on its performance, with interest income recovering in the first half of 2025, but non-interest net income declining by 6.73%, resulting in a mere 0.25% growth in net profit attributable to shareholders [1][10]. Financial Performance - In the first half of 2025, CMB reported operating income of 169.97 billion yuan, a year-on-year decline of 1.72%, and net profit attributable to shareholders of 74.93 billion yuan, growing only 0.25% [1][10]. - The annualized weighted return on equity (ROE) fell to 13.85% in the first half of 2025, down from over 15% in 2024 [3][10]. - Interest net income was 106.09 billion yuan, showing a year-on-year increase of 1.57%, while non-interest net income was 63.88 billion yuan, down 6.73% [10]. Non-Interest Income Breakdown - Within non-interest income, net commission and fee income was 37.60 billion yuan, down 1.89% year-on-year, with significant declines in credit card fees (down 16.37%) and asset management fees (down 6.91%) [11][12]. - Wealth management fees increased by 11.89% to 12.80 billion yuan, partially offsetting declines in other areas [11][12]. Regulatory Issues - CMB has faced regulatory fines totaling 22.06 million yuan in 2025, with the latest fine of 3 million yuan imposed on its Hangzhou branch for inadequate checks on loans [3][10]. Real Estate Loan Performance - As of mid-2025, CMB's total real estate loans amounted to 1.75 trillion yuan, with personal housing loans increasing by 20.93 billion yuan, while corporate real estate loans decreased by 6.99 billion yuan [13][14]. - The bank's real estate non-performing loans (NPLs) decreased to 21.39 billion yuan, with the NPL ratio for corporate real estate loans at 4.56% [13][14]. Market Position - As of October 23, 2023, CMB's stock price was 42.24 yuan per share, with a market capitalization of 1,058 billion yuan, reflecting a decline of 9.24% from recent highs [4].