Financial Data and Key Indicator Changes - Net operating income amounted to RMB172.92 billion, a decrease of 3.11% year-on-year [4] - Net profits attributable to shareholders were RMB74.74 billion, down by 1.33% year-on-year [4] - Return on average assets (ROAA) and return on average equity (ROAE) were 1.32% and 15.44%, decreasing by 0.13 and 2.11 percentage points year-on-year, respectively [4] - Net interest income (NII) was RMB104.45 billion, representing a year-on-year decrease of 4.17% [5] - Net non-interest income was RMB68.47 billion, a year-on-year decrease of 1.43% [5] - Cost-to-income ratio increased to 29.75%, up by 0.68 percentage points year-on-year [6] Business Line Data and Key Indicator Changes - Retail loans balance was RMB3.54 trillion, an increase of 3% from the end of the previous year, accounting for 52.48% of total loans [10] - Corporate finance loans totaled RMB5.99 trillion, representing an increase of 7.61% over the beginning of the year [16] - Credit card business operating income was RMB44.708 billion, with a year-on-year decrease of 1.17% [15] - Wealth management products (WMP) balance amounted to RMB3.76 trillion, an increase of 7.3% [19] Market Data and Key Indicator Changes - Total assets were RMB11.57 trillion, an increase of 4.95% from the end of the previous year [8] - Total liabilities were RMB10.46 trillion, representing an increase of 5.18% [9] - Average daily balance of core deposits increased by 4.42%, accounting for 86.2% of total deposits [9] Company Strategy and Development Direction - The company aims to build a value-creating bank, focusing on high-quality development and balanced growth in quality, profitability, and scale [3] - Emphasis on maintaining asset quality and efficiency while expanding the customer base [37] - Plans to enhance digital transformation and technological innovation, particularly in AI applications [25][33] Management's Comments on Operating Environment and Future Outlook - The macro environment is complex, with challenges such as insufficient effective credit demand and competitive pressures on loan pricing [27][28] - The company is confident in maintaining stable asset quality despite external uncertainties [49] - Future strategies will focus on risk management, operational efficiency, and enhancing customer service capabilities [31][32] Other Important Information - The company has seen a steady increase in retail customers, with a total of 202 million, up by 2.54% [12] - The number of corporate customers increased by 5.46%, totaling 2.974 million [13] - The company is actively promoting green and low-carbon operations [7] Q&A Session Summary Question: What is the strategy for expansion of the asset book given the slower loan growth? - The company aims to balance asset growth with capital adequacy and profitability, prioritizing asset quality over size [35][39] Question: What impact will potential mortgage refinancing have on CMB? - The company has not received official confirmation regarding refinancing but acknowledges potential negative impacts if implemented [41] Question: How does CMB view its asset quality compared to peers? - CMB maintains stable asset quality with a corporate NPL ratio of 1.13%, down by 0.06 percentage points [45][46] Question: What measures are being taken to stabilize NIM? - Continuous pressure on NIM is expected, with management focusing on asset-liability management and optimizing the loan structure [67]
CM BANK(CIHKY) - 2024 Q2 - Earnings Call Transcript