Core Viewpoint - The article highlights the declining performance of China Merchants Bank (招商银行), particularly in terms of revenue and profit growth, while contrasting it with the strong performance of Agricultural Bank of China (农业银行) in the A-share market. Group 1: Stock Performance - As of October 23, only two of the 42 A-share listed banks have a price-to-book ratio (PB) above 1, namely Agricultural Bank and China Merchants Bank [1] - Agricultural Bank leads the banking sector with a stock price increase of 56.35% year-to-date, while China Merchants Bank has only increased by 12.13%, ranking 22nd among its peers [1] Group 2: Financial Performance - In the first half of 2025, China Merchants Bank reported a revenue of 1699.69 billion yuan, a year-on-year decline of 1.72%, and a net profit of 749.30 billion yuan, with a slight increase of 0.25% [10] - The annualized return on equity (ROE) fell to 13.85% in the first half of 2025, down from over 15% in 2024 [3][10] - The bank's non-interest income decreased by 6.73% to 638.84 billion yuan, accounting for 37.59% of total revenue [10] Group 3: Loan and Asset Quality - As of mid-2025, the total real estate loans of China Merchants Bank reached 17499.33 billion yuan, with a notable increase in personal housing loans, while corporate real estate loans declined [13][14] - The bank's real estate non-performing loans decreased to 213.85 billion yuan, with the non-performing loan ratio for corporate real estate loans at 4.56% [13] Group 4: Regulatory Issues - China Merchants Bank has faced regulatory penalties totaling 22.06 million yuan in 2025, with the latest fine of 3 million yuan imposed for compliance failures [3]

Core 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].