Xin Lang Cai Jing·2025-10-31 00:28Core Viewpoint - The financial performance of China Merchants Bank for the first nine months of 2025 shows a slight decline in revenue but a modest increase in net profit, indicating a stabilization in growth trends despite challenges in interest margins and market conditions [1][2]. Revenue and Profitability - The company reported a revenue of 251.42 billion yuan for 9M25, a year-on-year decrease of 0.5%, with the decline narrowing by 1.2 percentage points compared to 1H25 [1]. - The net profit attributable to shareholders reached 113.77 billion yuan, reflecting a year-on-year increase of 0.5%, with growth accelerating by 0.3 percentage points from 1H25 [1]. Interest Income and Fee-Based Income - Net interest income for 9M25 was 160.04 billion yuan, up 1.7% year-on-year, with a slight improvement in growth rate compared to 1H25 [2]. - The growth in net fee and commission income turned positive, reaching 56.20 billion yuan, a year-on-year increase of 0.9%, supported by improvements in wealth management fees [2]. - Other non-interest income decreased by 11.4% year-on-year to 35.18 billion yuan, but the decline was less severe than in 1H25, with investment income showing a significant increase [2]. Loan Growth and Quality - The total loan balance at the end of 9M25 was 7.1363 trillion yuan, a year-on-year increase of 5.6%, maintaining growth similar to 1H25 [3]. - Corporate loans grew significantly by 13.6% year-on-year, reaching 3.1503 trillion yuan, while retail loans saw a slight slowdown in growth to 3.6966 trillion yuan, up 3.4% year-on-year [3]. - The non-performing loan (NPL) ratio stood at 0.94%, with a year-on-year improvement in the annualized NPL generation rate, indicating stable asset quality [4]. Investment Outlook - The bank is expected to continue benefiting from its wealth management strategy, with projected net profits for 2025-2027 showing steady growth [4].