Core Viewpoint - China Merchants Bank (CMB) reported a steady improvement in operational efficiency in Q3 2023, with net profit for the first nine months reaching 113.77 billion yuan, a year-on-year increase of 0.52% [2] Financial Performance - For the first three quarters, CMB achieved operating income of 251.42 billion yuan, a slight decline of 0.51% year-on-year, but the decline narrowed by approximately 1.2 percentage points compared to the first half of the year [2] - Net interest income for the first nine months was 160.04 billion yuan, up 1.74% year-on-year, while non-interest income was 91.38 billion yuan, down 4.23% year-on-year, with the decline narrowing compared to the first half [2] Wealth Management - CMB's wealth management segment showed strong growth, contributing to the overall positive performance [3] Competitive Advantages - CMB maintained a significant net interest margin advantage, reported at 1.87%, which is 46 basis points higher than the industry average [4] - The bank's cost of interest-bearing liabilities decreased by 38 basis points to 1.31%, positively impacting net interest income [4] Retail Banking - Retail loans reached 3.70 trillion yuan, a year-on-year increase of 1.43%, despite industry-wide pressures on retail loan growth [5] - The number of retail customers increased to 220 million, a growth of 4.76% year-on-year, with total assets under management (AUM) rising to 16.60 trillion yuan, an increase of 11.19% [5] Asset Quality - CMB's total assets reached 12.64 trillion yuan, a growth of 4.05% year-on-year, with a non-performing loan (NPL) ratio of 0.94%, slightly down from the previous year [6] - The bank's provision coverage ratio stood at 405.93%, maintaining a strong position in the industry [6] Income Structure - Non-interest income accounted for 36.34% of total revenue, reflecting a stable income structure [7] - Wealth management fees and commissions grew by 18.76% year-on-year, marking the best performance since 2022 [7]

Core Viewpoint - China Merchants Bank (招商银行) reported a steady improvement in operational performance for the first three quarters of 2023, with net profit slightly increasing year-on-year despite challenges in the banking sector [1][4]. Revenue Trends - For the first three quarters, the bank achieved operating income of 251.42 billion yuan, a year-on-year decrease of 0.51%, but the decline narrowed by approximately 1.2 percentage points compared to the first half of the year [2]. - Net interest income for the same period was 160.04 billion yuan, up 1.74% year-on-year, while non-interest income was 91.38 billion yuan, down 4.23%, indicating a slight recovery in fee and commission income [2]. Operational Advantages - The bank maintained a significant net interest margin of 1.87%, which, although down 12 basis points year-on-year, showed a smaller decline compared to the previous year [4]. - Retail loans reached 3.70 trillion yuan, growing 1.43% year-on-year, demonstrating resilience in a challenging economic environment [5]. Development Trends - As of the end of September, total assets reached 12.64 trillion yuan, a 4.05% increase from the end of the previous year, with total loans and advances at 7.14 trillion yuan, up 3.60% [6]. - Customer deposits totaled 9.52 trillion yuan, reflecting a 4.64% increase year-on-year [6]. Asset Quality - The bank's non-performing loan (NPL) ratio stood at 0.94%, a slight decrease from the previous year, with a provision coverage ratio of 405.93%, indicating strong asset quality management [7]. - The bank's management emphasized a focus on high-quality clients and collateral, with 90% of loans classified as "three high" (high quality, high area, high collateral) [7]. Income Structure - Non-interest income accounted for 36.34% of total revenue, with significant growth in wealth management services, including a year-on-year increase of 18.76% in fee and commission income [8].

经营效益稳中有进 上半年，招商银行客群基础更加稳固，相较上年末，零售客户总数增长2.86%至2.16亿户，公司客户总 数增长6.36%至336.79万户。 资产质量总体稳定，不良贷款率下降0.02个百分点至0.93%，拨备覆盖率410.93%。权重法和高级法下各 级资本充足率均保持国内同业前列。 重点区域市场份额持续提升，该行在长三角、珠三角、成渝和海西等地打造区域特色，16家重点区域分 行客群、管理零售客户总资产（AUM）、核心存款和贷款规模等主要指标较上年末增速均高于境内分 行平均水平。 继续保持低成本存款优势，客户存款总额较上年末增长3.58%至9.42万亿元，客户存款年化平均成本率 同比大幅下降34BPs至1.26%。 贷款规模稳健增长，贷款和垫款总额7.12万亿元，较上年末增长3.31%。其中零售贷款占比51.68%，"压 舱石"效应持续显现。 中间业务收入占比保持行业领先水平，非利息净收入占集团营收比例为37.59%。 8月29日，招商银行（600036）发布2025年半年度报告。今年上半年，该行克服多项经营挑战，营业收 入呈现逐季向好趋势。营业收入1699.69亿元，同比下降1.72%。其中二季 ...

Core Insights - The implementation of the "Big Wealth Management" strategy by China Merchants Bank (CMB) has shown mixed results over the past four years, with a stable but slightly increasing share of non-interest net income in total revenue, while net fee and commission income has been declining [2][3] Financial Performance - From 2022 to 2024, the share of non-interest net income in total revenue for CMB was 36.7%, 36.7%, and 37.4% respectively, indicating stability and slight improvement [2] - In contrast, net fee and commission income as a percentage of total revenue decreased from 27.34% in 2022 to 21.36% in 2024 [2] - In 2024, CMB achieved non-interest net income of 126.21 billion yuan, a year-on-year increase of 1.41%, while net fee and commission income was 72.09 billion yuan, a decline of 14.28% [2] Wealth Management Revenue - CMB's wealth management revenue, which includes fees from wealth management, asset management, and custody services, totaled 37.65 billion yuan in 2024, down 16.84% year-on-year [3] - Specifically, wealth management fees decreased by 22.70% to 22.00 billion yuan, while distribution income from wealth management products increased by 44.84% to 7.86 billion yuan [3] - The decline in income from insurance and fund distribution was significant, with insurance income dropping by 52.71% and fund income decreasing by 19.58% [3] Other Income Sources - Asset management fees fell by 6.30% to 10.75 billion yuan, while card fees decreased by 14.16% to 16.76 billion yuan, primarily due to a drop in credit card transaction fees [4] - Other net income, which includes investment income and fair value changes, rose by 34.13% to 54.12 billion yuan, driven by increased bond investment returns [4][5] Future Outlook - CMB anticipates significant changes in non-interest net income in 2025, with expectations for a rebound in net fee and commission income due to favorable macroeconomic policies and a recovering capital market [6][7] - The bank plans to focus on enhancing retail financial services, improving product innovation, and strengthening its investment banking and financial market capabilities to drive non-interest net income growth [7]