Ge Long Hui·2026-03-30 05:45Core Viewpoint - Bank of America Securities reports that China Merchants Bank's net profit before preferred stock dividends for the previous year was 150.2 billion yuan, reflecting a year-on-year growth of 1.2%, in line with prior guidance [1] Financial Performance - Return on equity (ROE) decreased by 1.0 percentage points year-on-year to 13.4% [1] - Common Equity Tier 1 (CET1) capital ratio fell by 97 basis points year-on-year to 14.16% [1] - The dividend payout ratio remained at 35.3%, with the annual dividend per share increasing by 0.8% to 2.016 yuan [1] Dividend Yield - Estimated dividend yields for the bank's H-shares and A-shares are 4.7% and 5.1%, respectively [1] Price Target Adjustments - The bank maintains its earnings forecasts for 2026 and 2027, while lowering the target price for H-shares from 50.52 HKD to 49.8 HKD and for A-shares from 45.49 CNY to 43.28 CNY [1] - The rating is reiterated as "underperform," with a preference for state-owned banks with higher dividend yields [1]